Classification of service— In the instant case, the applicant is engaged in construction services in respect of commercial / industrial buildings and civil structures. Certain civil works were awarded to the applicant by Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC).

Questions raised before the authority:

The applicant seeks advance ruling on the following:

1. Applicability of CGST and SGST Tax Rate on the listed works executed for Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

2. Applicability of CGST and SGST Tax Rate on construction of 20MT cold storage building for Primary Processing Centre (PPC) under Mega park scheme at peddapuram, East Godavari district.

The applicant seeks Advance Ruling in the context of the argument put forth by its contractee, APIIC that all the works executed for them attract concessional rate of tax. APIIC Claims that it is a Government company and works executed to them shall be considered as works executed for Government of Andhra Pradesh under category VI (a) of the notification No. 11/2017 Central Tax (Rate) dated 28th June 2017 with the applicable rate of tax as 12%.

The applicant did not provide any information or documentary proof clarifying that the constructions are for use other than for commerce, industry, or any other business or profession, to be eligible for concessional rate of 12%.

Held that— The listed works are classifiable under SAC Heading No. 9954 Construction Services, entry no (ii) of serial No.3 of notification no. 11/2017 Central Tax (Rate) dated 28.06.2017 and the applicable rate of tax is 18% (9% under Central tax and 9% State tax).

Classified under V (e) of sl.no 3 under heading 9954 Construction Services of notification no. 11/2017 Central Tax (Rate) dated 28th June 2017 with applicable rate of tax at 12%.