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The contract entered by the applicant squarely falls under the works contract and the applicable rate of tax is 18%GST and not the concessional rate of 12% GST.

Classification of service— The applicant seeks Advance Ruling on the following;—
1. Whether in the terms and conditions of the following contracts that the applicant entered into, the contractees therein the 'supply of service' involved therein would amounts to a supply to Government, Government Agency or Government Entity
2. When the contractee gets funds/grants from Central or State Government for given work, can it be called as work being done to a Government / Government agency/Entity? In this situation can the work be called as non-commercial?
3. Whether all these contractees shall basically be Government / Government Agencies/ Entities or is there any possibility in a particular work it can be said that a contractee is of this kind?

4. In respect of HVDS to Agriculture Sections, the State Government reimburses the money for agriculture service i.e. reimbursement to APSPDCL (Electricity consumption). In this situation, whether the supply by the applicant would amounts to a supply to Government /Government Agency/Entity?
5. Whether APSPDCL and APEPDCL falls under the definition of Government Authority/Government Entity as defined in Notification No 31/13.10.2017 central Tax (Rate) and other connected Notifications?
6. What is the applicable rate of tax on the works executed to APSPDCL and APEPDCL

Held that— The Applicant is not entitled for the benefit of concessional rate of GST @12 % (6% under Central tax and 6% State tax) for the stated works executed, in terms of Notification No.24/2017-Central Tax (Rate) dated 21.09.2017 read with Notification No.31/2017- Central Tax (Rate) dated 13.10.2017 or any other concessional rate. The applicable rate of tax is 18% (9% under Central tax and 9% state tax) for the services referred by the Applicant.

Whether a particular person is a Governmental authority or a Governmental Entity is to be decided in terms of the definition given in the Notification no.31/2017-CT (Rate) by applying the facts of each case.

Neither the contractee nor the stated works executed are “non-commercial” in the facts and circumstances as discussed above and the said stated works are taxable under GST.—Sealwel Corporation Private Limited, In Re… [2019] 08 TAXLOK.COM 110 (AAR-AP)