The Kerala Authority of Advance Ruling (AAR) ruled that 12% GST is applicable on Cochin Port Trust for providing Deposit Work under ‘Work Contract’.
The Applicant, M/s. Cochin Port Trust is a body corporate constituted under the Major Port Trusts Act, 1963 and is engaged in providing port services with modern infrastructure. The Board of Trustees of the applicant had entered into a Memorandum of Understanding dated December 22, 2016 with National Technical Research Organisation (N.T.R.O.) a Technical Intelligence Agency of the Government of India for construction of Jetty and development of sites for N.T.R.O. at Cochin on “Deposit Work” terms.
The applicant has sought the advance ruling on the issues that whether, having regard to the background and details including the scope of work of the Deposit work contained in the M.O.U. entered into between COPT and N.T.R.O., what is the nature of the services rendered by COPT under the M.O.U. entered Into between COPT and N.TR.O. and whether it would be treated as a “Works Contract” as per section 2 (119) of the CGST Act or as a Composite Supply for services as per Section 2 (30) of the CGST Act or as a mixed supply as defined in Section 2 (74) of the CGST Act.
The Authority consists of the members Shivprasad S. and B.S. Thyagarajababu ruled that the activity undertaken by the applicant as per the M.O.U. dated December 22, 2016 entered with the National Technical Research Organisation of the Government of India are covered under “Works Contract” as defined in Section 2 (119) of the CGST Act, 2017.
The other issue raised was whether, having regard to the background and details Including the scope of work of the Deposit work contained in the M.O.U. entered into between CoPT and N.T.R.O., whether CoPT is eligible to take the benefit of reduced rate of 12% GST as per Notification No 24/2017-IT(R) dated 21.09.2017, in respect of the services provided by it to N.T.R.O. under the M.O.U.
The Authority ruled that the rate of GST applicable on the services provided by the applicant as per the said M.O.U. is 12% as per Sl No.3 (vi) (a) of the Notification No. 08/2017- Integrated Tax (Rate) dated 28.06.2017 as amended.
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