Classification of service— In the instant case, the applicant has sought advance ruling as follows—

With effect from 01.01.2022, whether the works contract services provided by way of construction of non-commercial establishments by Elegant infra developers to the Construction & Design Services Division of the Uttar Pradesh Jal Nigam be subject to GST at the rate of 12% (6% CGST + 6% SGST) by virtue of item (vi) of serial number 3 of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 by considering the Construction & Design Services Division of the Uttar Pradesh Jal Nigam as a “Local Authority” or the same will be subject to GST at the rate of 18% (9% CGST + 9% SGST) under item (xii) of serial number 3 of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 by considering the Construction & Design Services Division of the Uttar Pradesh Jal Nigam as a “Governmental Authority”?

The Uttar Pradesh Jal Nigam (hereinafter referred to as the UPJN) was created by the Government of Uttar Pradesh. It is a body corporate having perpetual succession and a common seal and capable of suing and being sued in its name. It has power to acquire, hold and dispose of the property. The UPJN is a governmental authority in our view.

As the UPJN does not qualify as a 'local authority' and it qualifies as a governmental authority, tax rate of 18% is applicable on the works contract services provided to UPJN by way of Entry 3 (xii) of Notification No. 11/2017- Central Tax (Rate) dated June 28, 2017.

Held that— The works contract services provided by way of construction of non-commercial establishments by applicant to the Construction & Design Services Division of the Uttar Pradesh Jal Nigam will be subject to GST at the rate of 18% (9% CGST + 9% SGST) under item (xii) of serial number 3 of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 by considering the Construction & Design Services Division of the Uttar Pradesh Jal Nigam as a “Governmental Authority”.