Facts –

• The applicant, M/s KMV Projects Limited, has ongoing contracts with the government of the state.
• The applicant have been awarded following works and wants to know the applicable rate of GST on the same:

1. Airport Terminal Building at Sogane Village in Shivamogga taluk and District, Karnataka.
2. Greenfield Airport at Vijaypur in Karnataka State
3. Construction of High Security Prison at Central Prison, Parappana Agrahara, Bangalore Karnataka State.
4. Construction of Basava International Center and Museum at Kudalasangam of Hunagunda Taluka in Bagalkot District.
5. Construction of Government School Buildings and Hostels at various places in Karnataka State.

• The applicant states that Government of India through Ministry of Finance has issued a Notification No.15/2021 dated 18/11/2021-Central Tax (Rate), where the rate of GST on certain works contract services provided to Government Authority and Government Entity has been increased from 12% to 18% w.e.f., 01-01-2022. 
• In view of this notification, the applicant seeks ruling on the applicable rate of GST on the works awarded to them.

Issue –

• At what rate the government contracts awarded to the Applicant shall be charged at under the new tax scheme?

Order –

• The authorities observed that Karnataka State Police Housing and Infrastructure Corporation Limited is a company of the Government of Karnataka incorporated under the companies Act 1956 and all the shares of the company are held by Government of Karnataka. In view of the said definition mentioned, Karnataka State Police Housing and Infrastructure Corporation Limited qualifies to be considered as a Government Entity.
• Kudala Sangama Development Board was established under Kudala Sangama Development Board Act 1994 to develop and maintain kudala sangama kshetra in Bagalkot district. More than 90% of the members of the board are from the State Government and all the administrative expenses of the board are covered by the grants given by the State Government. In view of the definitions, Kudala Sangama Development Board qualifies to be considered as a Government Entity.
• Similarly, other organizations as specified are also Government Entity.
• In view of the same, it was held that the applicant on all the contracts awarded to them by the state, shall pay GST @ 18% w.e.f. 01.01.2022 as per entry No. 3(xii) of Notification No.11/2017- Central Tax (Rate) dated 28th June, 2017, as amended vide Notification No.22/2021-Central Tax (Rate), dated 31.12.2021 and Notification No.03/2022 Central Tax Rate, Dtd:13.07.2022