FA, 2020 amendment increasing...
The fact of the Case
The applicant entered into an Agreement with the Indian Institute of Technology, Bhubaneswar (IIT BBS)for Project Management Consultancy (PMC) works.
It would carry out surveying and soil investigation of the plot of IIT BBS, finalize the Architectural Plans, and prepare tender documents required for the execution of the Project after giving the technical sanction of the concerned work.
The work would be executed as per architectural drawings and specifications. It applied for advance judgment to determine the taxability of services provided.
The Authority for Advance Ruling observed that all the institutions of the Indian Institutes of Technology are established by the Government of India, Ministry of Human Resource Development and Ministry of Human Resource Development is exercising full control over the activities of IITs all over the country.
Therefore, ITT, Bhubaneswar would undoubtedly be treated as a Government Entity for CGST Act, 2017.It was also observed the applicant was engaged as a “Project Management Consultant” and it awarded different types of works to various agencies/contractors with categorical mention of individual works to be carried out by them with specific remuneration for each such work.
Hence, it would be a supply having distinctly identifiable components with distinct values attributable to each of the components. Therefore, the supply of services and goods encompassed in the subject work order/contract was not naturally bundled and would not be treated as a composite supply.
Hence, it was held that the entire work under the said contract would not be entitled to a concessional rate in terms of Notification No. 11/2017-C.T. (R), dated 28-6-2017. Accordingly, each supply under the contract would be treated separately for determining the rate of tax under the CGST Act, 2017 read with the provisions of GST Tariff and respective exemption notifications
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