The Wular Conservation and Management Authority has awarded the applicant a contract for the dredging of Wular lake along with its feeder channels and the strengthening of embankments of the lake.
The applicant seeks a ruling on whether Sl No. 3(vii) of Notification No 08/2017 Integrated Tax (Rate) dated June 28, 2017, as amended from time to time, applies to the above supply.
Entry No. 3 (vii) of the Notification provides that a supply is taxable at the rate of 5% if the contract is a composite supply of works contract as defined under section 2(119) of the GST Act, involving earthwork exceeding 75% of the contract value and the recipient is the Central Government, State Government, Union Territory, a government authority or a government entity.
The AAR observed that Notification No. 311 dated September 25, 2012 of the Forest Department of State Government that the recipient is constituted as an authority under section 3(1) of the Jammu and Kashmir Development Act, 1970 for preservation and conservation of Wular Lake.
The Board of the recipient, constituted the same day by Notification No. 314, ensures 100% control of the State Government (now a Union Territory). The powers and functions of the recipient are described in Govt Order No. 396 FST of 2012 dated 10/10/2012 of the Forest Department, Government of Jammu and Kashmir.
It broadly conforms to the function of promoting urban forestry, protection of environment and ecology entrusted to a municipality under article 243W of the Constitution. The recipient is, therefore, a Governmental Authority within the meaning of para 5(ix) of the IGST Notification.
The two member bench of Susmita Bhattacharya and Parthsarthi Dey ruled that the applicant’s supply, to the Wular Conservation and Management Authority is taxable under Sl No. 3(vii) of Notification No 8/2017 – Integrated Tax (Rate) dated 28/06/2017, as amended from time to time.Subscribe Taxscan AdFree to view the Judgment