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Works contract services executed to Public works Department, Government of Karnataka, for Construction of Airport Terminal Building in Shivamogga are liable to tax @18% as per entry No. 3(xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017.

Classification of service— In the instant case, the applicant is involved in construction activity of government works (buildings) and not with private parties.

The applicant has sought advance ruling in respect of the following questions:

i. Applicable GST rates with regards to

a. Government works contract services of Airport Terminal Building at Sogane Village in Shivamogga taluk and District, Karnataka.

b. Work received from Public Works Department for Development of Greenfield Airport at Vijaypur in Karnataka State.

c. Work received from Karnataka State Police Housing and Infrastructure Development Corporation Limited for construction of High Security Prison at Central Prison, Parappana Agrahara, Bangalore Karnataka State.

d. Work received from Commissioner, Kudalasangam Development Board, Kudalasangam for construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District.

e. Work received from Karnataka Residential Educational Institutions Society for construction of Government School Buildings and Hostels at various places in Karnataka State.

The supplies made by the applicant in respect of all the contracts awarded to them are covered under entry 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, and attracts GST @ 18% (CGST 9% and KSGST 9%) with effect from 18.07.2022.

Held that—

a. Works contract services executed to Public works Department, Government of Karnataka, for Construction of Airport Terminal Building in Shivamogga are liable to tax at 9% CGST as per entry No. 3(xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017.

b. Works contract services executed to Public works Department, Government of Karnataka, for Development of Greenfield Airport at Vijayapura are liable to tax at 9% CGST as per entry No. 3(xii) of Notification No.11/2017 - Central Tax (Rate) dated 28th June, 2017.

c. Works contract services executed to Karnataka State Police Housing and Infrastructure Corporation Limited for Construction of High Security Prison are liable to tax at 9% CGST w.e.f 01.01.2022 as per entry No. 3(xii) of Notification No.11/2017 - Central Tax (Rate) dated 28th June, 2017, as amended vide Notification No.22/ 2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/ 2022 Central Tax Rate, Dtd:13.07.2022.

d. Works contract services executed to Kudala Sangama Development Board for Construction of Basava International Center and Museum at Kudalasangama are liable to tax at 9% CGST w.e.f 01.01.2022 as per entry No. 3(xii) of Notification No.11/ 2017 - Central Tax (Rate) dated 28th June, 2017, as amended vide Notification No.22/ 2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd:13.07.2022.

e. Works contract services executed to Karnataka Residential Educational Institutions Society for Construction of Residential school complex in Chittapur are liable to tax at 9% CGST 01.01.2022 as per entry No. 3(xii) of Notification No.11/2017 -Central Tax (Rate) dated 28th June, 2017, as amended vide Notification No.22/2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd:13.07.2022.