Levy of GST— In the instant case, the applicant for the purpose of ascertaining the rates of GST applicable on their projects as per the applicable notifications (Notification No. 20/2017, 24/2017, 31/2017, 1/2018 and 15/2021) issued by the CBEC from time to time, to seek clarification regarding the following issues:

i. That, the Act has not defined the terms “Central Government”, “State Government'', “Union Territory” and “Local Authority” and accordingly request to define the said terms. Further in this regard, we seek clarification as to whether corporations and departments working under various Ministries of Central Government State Governments and UTs will form part of Central Government/ State Government/ Union territory or Local Authority?

ii. The above notifications prescribe different rates based on service recipient for e.g., Notification No. 24/2017 states that specified Services provided to the Central Government, State Government, Union Territory or a local authority will be taxable at the rate of 12% (6% CGST & 6% SGST) and that another issue arises here is that if an organization has awarded their company a contract but the said organization is entrusted by a Ministry/ Department of Government to float the tender and award the work to the eligible Contractor, then who will be deemed to be the services recipient, Government or the organization?

For Example: Ministry of AYUSH has instructed NBCC (India) Limited to construct an Ayurvedic College in Goa, the applicant was awarded the Tender by NBCC (India) Limited. In this Case who will be the Service recipient i.e., Ministry of AYUSH or NBCC (India) Limited and what rate of GST be applicable to us (Service Provider to NBCC).

iii. Further in this regard it was their request to specify the Classification of the following listed out agencies as to whether these are Corporation or Government Organizations into Central Government, State Government Union Territory, local authority, Government Authority or a Government Entity.

a. NBCC (India) Limited

b. Engineering Projects India Limited

c. Central Public Works Department

d. Maharashtra State Power Generation Company Limited

e. Employee State Insurance Corporation (ESIC)

f. Ministry of AYUSH

g. Indian Institute of Management

h. Rajasthan Cricket Association

Held that— The ruling so sought by the Applicant is accordingly answered as under:

i. “Central Government”, “State Government”, “Union Territory and Local Authority” stands defined under Section 2 of the CGST Act, 2017 as discussed above. Departments working directly under various Ministries of Central Government, State Governments and Union Territory will form part of Central Government/ State Government/ Union territory subject to fulfillment of conditions stipulated in the Act. Corporations per se cannot be Central / State Government, and they can be treated as other entities as defined above, subject to fulfillment of conditions as mentioned in the definitions / statute.

ii. Section-2(93) of the CGST Act, 2017 defines the service recipient viz. recipient of the supply of goods or services as someone who is liable for payment of consideration for the supply of goods or services. If no consideration is payable, the person to whom the goods are delivered or made available, or uses the goods or services shall qualify as the recipient.

iii. Since classification of entities functional at a place outside the jurisdiction of the State of Chhattisgarh is not within the scope and purview of advance rulings under Section 98 ibid read with Section 97(2) supra, this authority is not in a position to deliver any ruling regarding the status of the said entities as being a Corporation or Government Organizations into Central government, State Government, Union Territory, local authority, Governmental Authority or a Government Entity, more so when their incorporation details / certificate of incorporation, financial / commercial/ business details are not forthcoming in the records before this authority.