Facts –

• The applicant, SH.OM PRAKASH AGARWAL, PROP. M/S MITTAL TRADING COMPANY, has been awarded a contract from Rajasthan State Industrial Development & Investment Corporation for the development of a commercial complex, at industrial Area Agro Food Park — II, Ranpur, Kota.
• Applicant contended that the scope of works covered in the projects primarily involves construction and re-carpeting of C.C. Road, and hence, the project is covered under Sl. No. 3 (vi) (a) of the Notification. Consequently, the GST rate applicable on such projects would be 12%.

Issue –

• What GST rate will be applicable as per Notification No. 11/2017 - Central Tax Rate, after the amendments have been made?

Order –

• The ruling authority has examined the relevant legal definitions and amendments to the notification, concluding that the words "or a Governmental authority or a Government Entity" have been omitted from serial number 3 of column 3 in the heading "Description of Services" in the notification.
• Therefore, the GST rates for works contracts involving construction services for a government or local authority have been increased to 18% as per Notification No. 03/2022 - Central Tax (Rate) dated July 13, 2022.
• It has not found any relevance in the applicant's additional submission regarding a tender for pure labour service contract covered under entry 3A of Notification -12/2017.

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