Classification of service— In the instant case, the applicant is primarily engaged in the construction of roads, bridges and other public infrastructure for the Government and other institutions and is an accredited agency for the Government of Kerala.
The Applicant requested an advance ruling on the following:
"Whether the works contract service provided to Malabar Cancer Centre is to be billed at 12% GST or to be billed at 18% GST?"
The issue to be determined is the rate of GST applicable on the services provided by the applicant to Malabar Cancer Centre. It is stated by the applicant that the services provided are for the construction and extension of the site and building. It is further stated by the applicant that they have raised invoice with 18% GST but it was objected by Malabar Cancer Centre on the ground that they are an autonomous institution under the State Government and hence only 12% GST is applicable on the said services received by them.
The services rendered by the applicant to Malabar Cancer Centre as detailed in the application are eligible for the concessional rate of tax of 12% [6% -CGST+ 6% - SGST] prescribed in the entry at SI No. 3(vi) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as Malabar Cancer Centre is a governmental authority as per definition of governmental authority in Para 4 (ix) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017. However, consequent to the issue of Notification No. 22/2021 Central Tax (Rate) dated 31.12.2021 amending the entry at SI No. 3 (vi) of the Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 with effect from 01.01.2022 the concessional rate in terms of the said entry at SI No. 3 (vi) shall be applicable only till 31.12.2021 and thereafter from 01.01.2022, the applicant shall be liable to pay GST at the rate of 18% [9% - CGST + 9%- SGST] as per entry at SI No. 3 (xii) of the Notification No. 11/2021 Central Tax (Rate) dated 28.06.2017.
Held that— The works contract services provided by the applicant to Malabar Cancer Centre are liable to GST at the rate of 12% [6% - CGST+ 6% - SGST] as per entry at SI No. 3 (vi) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 till 31.12.2021 and thereafter from 01.01.2022 onwards will be liable to GST at the rate of 18% [9% - CGST + 9%- SGST] as per entry at SI No. 3 (xii) of the Notification No. 11/2021 Central Tax (Rate) dated 28.06.2017.