Classification of service— In the instant case, the applicant is a Civil Works Contractor engaged in construction of houses and infrastructure activities to Karnataka Slum Development Board under Pradhan Mantri Awas Yojana (U) -HFA, construction of buildings to Belagavi Smart City Limited under Smart City projects and construction of Police Station under the Karnataka Housing Board, Bangalore.

The applicant has sought advance ruling for the clarification on rate of tax on civil works contract/ services with effect from 01.01.2022-

i. Works contract services executed to Karnataka Slum Development Board under the Prime Minister Awaz Yojana, as a main contractor.

ii. Works contract services executed to Karnataka Slum Development Board under the Prime Minister Awaz Yojana, as a sub-contractor.

iii. Works contract services executed to Belagavi Smart City Limited projects to Belgaum Smart City Corporation Limited, as a main contractor.

iv. Works contract services executed to Belagavi Smart City Limited projects to Belgaum. Smart City Corporation Limited, as a sub-contractor.

v. Works contract services executed to Karnataka Housing Board, Bangalore with respect to construction of police station at Govindarajanagar, Bangalore.

Held that—

i. Works contract services executed to Karnataka Slum Development Board under the Pradhan Mantri Awas Yojana, as a main contractor is liable to tax at 6% CGST as per serial No. 3(iv)(c) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017, as amended vide Notification No.20/ 2017 Central Tax Rate, Dtd:22.08.2017 till 17.07.2022 and liable to tax at 9% CGST from 18.07.2022 as per serial No.3(xii) of Notification No.11/ 2017 - Central Tax (Rate), dated 28.06.2017 further amended vide Notification No.03/ 2022-Central Tax (Rate) dated: 13.07.2022.

ii. Works contract services executed to Karnataka Slum Development Board under the Pradhan Mantri Awas Yojana, as a sub-contractor is liable to tax at 9% CGST as per serial No. 3(xii) of Notification No.11/2017 - Central Tax (Rate) dated 28th June, 2017 further amended vide Notification No. 03/ 2022-Central Tax (Rate) dated: 13.07.2022.

iii. Works contract services executed to Belagavi Smart City Limited projects to Belgaum Smart City Corporation Limited, as a main contractor is liable to tax at 9% CGST as per serial No. 3(xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017 further amended vide Notification No. 03/ 2022-Central Tax (Rate) dated: 13.07.2022.

iv. Works contract services executed to Belagavi Smart City Limited projects to Belgaum Smart City Corporation Limited, as a sub-contractor is liable to tax at 9% CGST as per serial No. 3 (xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017 further amended vide Notification No.03/ 2022-Central Tax (Rate) dated: 13.07.2022.

v. Works contract services executed to Karnataka Housing Board, Bangalore with respect to construction of police station at Govindarajanagar, Bangalore is liable to tax at 9% CGST as per serial No. 3(xii) of Notification No.11/2017 - Central Tax (Rate) dated 28th June, 2017 further amended vide Notification No.03/ 2022-Central Tax (Rate) dated: 13.07.2022.