No GST on Centage Charges / Consultancy Charges for Pure Services to State Govt : AAR

By | May 16, 2019
(Last Updated On: May 16, 2019)

Applicant has been selected as Construction Agency / Project Management Consultant / Special Purpose vehicle for preparation of DPR, tendering of work, executing agreement with contractor, supervision of construction, recording measurements in M-Book, preparation of bill etc. for which they are eligible to a centage charge / consultancy charge calculated on estimated value / value of work done in respect of following projects;

1.Construction of Model Residental School, Hostel for Boys and Girls, Kitchen Block and Staff Quarters at Aralam in Kannur District for SCSTDD.
2.Construction of Building for Pre-Examination Training Centre in Kannur District for SCSTDD.
3.Construction of Pre-Metric Hostel for Boys at Kadirur in Kannur District for SCSTDD.
4.Construction of Model Residential School, Hostel, Kitchen Block and Staff Quarters at Peringome in Thaliparamba Taluk in Kannur District for SCSTDD,
5.Construction of Sub-Registrar Office at Thiruvananthapuram for Registration Department.

• Applicant requested for Advance Ruling on GST rate applicable for Centage charges / Consultancy charges.

Held

Centage Charges / Consultancy Charges received by applicant in respect of works at SI. Nos. (1) to (4) above being in relation to pure services provided to State Government by way of activity in relation to function entrusted to a Panchayat/Municipality under 243G/243W of Constitution is exempt from goods and services tax as per SI No. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28-6-2017. Outsourced activities of soil investigation and structural design works for DPR preparation received by applicant will also be entitled to exemption being pure services. However, services supplied/received by applicant in respect of project at Sl. No.5 above are taxable at rate of 18 per cent.

AUTHORITY FOR ADVANCE RULINGS, KERALA

Kerala State Construction Corporation Ltd., In re

S. ANIL KUMAR AND B.S. THYAGARAJABABU, MEMBER

ADVANCE RULING NO. KER/46/2019

APRIL  12, 2019

Download Ruling Click here 

Refer GST Exemption : Free Study Material

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