AAR TELANGANA:- GST PAYABLE @18% ON WORKS CONTRACT SERVICE OF CONSTRUCTING WAREHOUSE & COLD STORAGE FOR GOVT. ENTITY WHICH WILL BE RENTED

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AAR TELANGANA:- GST PAYABLE @18% ON WORKS CONTRACT SERVICE OF CONSTRUCTING WAREHOUSE & COLD STORAGE FOR GOVT. ENTITY WHICH WILL BE RENTED

TELANGANA STATE

AUTHORITY FOR ADVANCE RULING

Case Name: Shree Constructions (GST AAR Telangana)

Appeal Number: Advance Ruling No. 10/2022 or TSAAR Order No.56/2022

Date of Judgement/Order: 8th December 2022

IN VIEW OF THE FOREGOING, WE RULE AS FOLLOWS:

In view of the above discussion, the questions raised by the applicant are clarified as below:

QuestionsRuling
1. Q. The rate applicable for the works contract service provided to the Telangana State Industrial Infrastructure Corporation Limited (TSIICL) which is wholly owned by the Government of Telangana State by way of construction of building on their land. Whether it is 12% as the for Telangana State Industrial Infrastructure Corporation Limited (TSIICL) is wholly owned by the Government of Telangana or 18% as the for Telangana State Industrial Infrastructure Corporation Limited is a business entity and collecting rent for letting our Godown/Building from its customers.A. The applicant is executing contract of construction of ware houses & cold storages godowns for TSIICL who in turn are letting out These facilities on rent. Therefore, the rate of tax applicable on these contract is 9% CGST & SGST each as discussed in detail above.

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