Classification of service- The present appeal has been filed against the Advance' Ruling order pronounced by the Odisha Authority for Advances Ruling.

The appellant is a Government of India Enterprises under the aegis of Ministry of Urban Development, Government of India. The appellant entered into an agreement with the Indian Institute of Technology, Bhubaneswar to construct the IIT Bhubaneswar Campus on turnkey basis.

The appellant have applied 18%on its tax invoices starting from 01.07.2017 for the agreement with IIT-Bhubaneswar. However, IIT-Bhubaneswar “the client”, advised the applicant to seek clarity on the applicability of correct rate of tax on the ongoing Project.

The advance ruling hold that the works entrusted to the Applicant by IIT, Bhubaneswar under contract cannot be termed as composite supply and thus entire work under the said contract shall not be entitled to concessional rate in terms of Notification No. 11/2017-CT (R), dated 28-6-2017. However, the Authority for Advance Ruling also hold that the supply of goods and/or services or both which squarely fall within the ambit of scope of work entrusted to HT, Bhubaneswar by Government of India shall be entitled for concessional rate under Sr. No. 3 (vi) to Notification No. 11/2017-CT(R).

Aggrieved, by the above ruling of the Authority of Advance Ruling, the applicant filed an appeal before Appellate Authority for Advance Ruling on 23-12-2020 seeking clarity on two issues, namely;

(i) Whether the works executed by them can be treated as composite supply or not; and

(ii) Whether concessional rate of GST under Sl. No.3 (vi) of notification 11/2017-CT (CR) dated 28.06.2017 would be applicable to their case.

Held that- The Works Contract, Service supplied by M/s. NBCC(India) Ltd. are entitled for concessional rate of 12% of GST vide Sl. No. 3 (vi) of the notification No. 11/2017-C.T (Rate), dated 28.06.2017 and matching ,State tax. Notification issued by the Government of Odisha.