18% GST applicable on Works Contract for NCBS

The Authority of Advance Ruling in Karnataka held that a works contract service provided by the applicant to the National Centre for Biological Science (NCBS) is liable to be taxed at the rate of 9% under the State Goods and Service Tax and 9% under Central Goods and Service Tax. The applicant sought an advance ruling after entering into a contract with the National Centre for Biological Sciences for construction of hostel building and wanted to know the rate of tax at which GST would be charged, especially whether the applicant should charge GST at the rate of 12% for service provided to NCBS as per Notification No 24/2017 Central Tax (Rate) dated 21-09-2017. The Karnataka AAR held that the work contract service provided by the applicant to the National Centre for Biological Science is liable to be taxed at the rate of 18% in total.