Classification of service- In the instant case, the applicant has sought Advance Ruling on the following questions:-

1. Whether the execution of works contract service at Kudankulam Nuclear Power Project would be covered under S.No vi (or) vii of Notification No.24/2017 dated 21.09.2017 attracting GST@12% or 18%

2. The assessee had already charged GST @12% on its invoices for the works contract service provided. In case the rate of GST is determined to be 18% instead of 12% should we pay the differential tax through debit note under GSTR 1?

The following conditions are required to be satisfied for availing concessional rate of 6% in terms of SI.No. 3(vi) of Notification No. 11/2017:-

a) Supply must be,-

i. works contract as defined in clause 119 of Section 2 CGST Act, 2017 rendered by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession;

ii. provided to the Central Government or State Government or Union Territory, a local authority, a Governmental authority or a Government entity.

iii. procured by the said Government entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.

In the instant case, the contract is a works contract service comprising of various activities namely Pre-construction work like earth work excavation, anti-termite treatment; Construction-works, fixing of windows and doors, providing modular wardrobes and show case, providing fixtures for the bathrooms, providing Public address system and signages etc, thus, the condition at (i) above is satisfied.

NPCIL (Nuclear Power Corporation India Limited) is a PSE established under Department of Atomic Energy, (Central Government Department) with 100 percent equity held by the Central Government to implement atomic projects for the generation of Electricity as entrusted by the Central Government and therefore is a 'Government Entity'.

In the instant case, the work of construction of residential quarters has been awarded to the applicant by NPCIL. The entity procuring such work is KKNPP and the work of construction of the Residential Quarters for the employees of KKNPP is not a work 'in relation to the work entrusted to KKNPP' as envisaged in 'clause c' of the entry 3 (vi) of the Notification No. 11/2017-C.T.(Rate) mentioned above, as the work - of construction of residential quarters is a welfare measure done by KKNPP for their employees. This cannot be construed to be 'in relation with the work' entrusted to NPCIL by the Central Government, in the absence of any document evidencing the same, in as much as the work entrusted to NPCIL is to 'implement atomic power projects for the Generation of Electricity'.

Held that- 

1. The execution of works contract service for construction of residential quarters to the employees of Kudankulam Nuclear Power Project is not covered under SI. No. 3(vi) of Notification 11/2017-CT-Rate dt. 28.06.2017 for the reasons stated in Para 7 above. The applicable rate is @18% GST as per SI. No 3(xii) of Notification 11/2017-CT-Rate dt. 28.06.2017(as amended) read with the corresponding TNGST Notification.

2. The question on how the differential tax is to be paid is found to be on the procedural aspects of payment and is out of the purview of Section 97(2) and hence is not answered.