Rate of tax— In the instant case, question raised before the authority is as follows—
1. Applicability of GST Rate for construction of Millennium tower at Madhurawada, Visakhapatnam for information Technology and Communication Department, Government of Andhra Pradesh and through Nodal Agency APIIC. Clarification is requested for the applicable Rate of GST under works contract service.
2. If GST should be payable @12%, whether a claim for refund be submitted in RFD-01.
The activity of the applicant under the said agreement with M/s APIIC is a Composite Supply of Works Contract as defined in clause 119 of Section 2 of Central Goods and Services Act, 2017.
M/s APIIC is a Government Entity within the meaning of para 4 of clause(x) of Notification No.11/2017-CT (Rate) dated 28.06.2017 as amended by Notification No.31/2017 - CT (Rate) dated 13.10.2017.
As the purpose of the construction / building is meant for accommodating Small and Medium Enterprises (SMEs) and Startups, which are not other than for commerce, industry, or any other business or profession, the concessional rate of 12% under Notification No.24/2017-CT (Rate) dated 21.09.2017 read with Notification No.31/2017-CT (Rate), Dated 13.10.2017 is not available to the applicant.
The activities under the agreement referred by the applicant are classifiable under SAC heading No. 9954 under construction services, which fall under entry no (ii) of serial No.3 of Notification No.11/2017-CT (Rate) dated 28.06.2017 and the applicable rate of tax is 18%—Kpc Projects Limited, In Re…  18 TAXLOK.COM 124 (AAR-AP)