Classification of service— The subject appeal filed against the order passed by advance ruling authority.

The Appellant stated that they were engaged in execution of civil engineering and other general construction contracts for various Government departments and organizations. The parties SOM Projects private limited and M/s Varindera Constructions Limited had entered into joint venture under the name "SOM VCL(JV)" solely for carrying out the works contract service for Kudankulam Nuclear Power project, a unit of Nuclear Power Corporation of India Ltd (NPCIL) at their site "Anuvijay Township, Kudankulam, Radhapuram Taluk, Tirunelveli, Tamilnadu. The appellant stated that they were awarded a project by NPCIL, a Government entity for carrying construction of 360nos (D-type 240Nos, D-special 80 Nos and E-type 40 Nos) residential quarters (9 blocks of G+10 floors) for residential usage of their employees at Anuvijay Township. The Appellant had filed an application before Hon'ble Authority for Advance Ruling, seeking clarification on the following questions:-

1. Whether the execution of works contract service at Kudankulam Nuclear Power Project would be covered under S.No vi (or) vii of Notification No. 24/2017 dated 21.09.2017 attracting GST@12% or 18%; and

2. The assessee had already charged GST @12% on its invoices for the works contract service provided. In case the rate of GST is determined to be 18% instead of 12% should they pay the differential tax through debit note under GSTR 1?

 AAR had held that in the absence of substantiation with regard to the fulfillment of the condition that the services were procured by NPCIL, a Government Entity, in relation to the work entrusted to them by the Central government, the concessional rate provided was not available to them. The appellant before us, through the MOA and the certification from NPCIL has established that the residential quarters constructed at Anuvijay township were meant exclusively for the employees and that as per the MOA, one of the Objects incidental to attainment of the main objects, provide NPCIL to acquire apartments as seen expedient, necessary or convenient to the Company for the purposes of its main object/business. Hence, we hold that the condition that the services so procured by the Government entity, in this case, NPCIL, is in relation to the work entrusted to it and therefore, the appellant are/were eligible for the concessional rate of tax @6% of CGST plus 6%of SGST as per entry 3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 (as amended) read with the corresponding Notification under TNGSTA for the period upto 31.12.2021.

However, in view of the amendment made to the above entry 3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 vide Notification No. 15/202l-C.T.(Rate) dated 18.11.2021 effective from 01.01.2022, 'Government entity' stands omitted in the class of recipients. Therefore, the applicable rate of tax for the above work is @ 9% of CGST plus 9% of SGST as per entry Sl.No. 3(xii) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 (as amended) read with the corresponding Notification under TNGSTA.

Held that— The execution of works contract service for construction of residential quarters exclusively meant for the employees of NPCIL at Anuvijay township by the appellant is covered under entry Sl.No.3(vi) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 and the corresponding SGST Notification for the period upto 31.12.2021.