AAR: Setting up data-centres qualify as ‘Works Contract’, taxable at 18%

Karnataka AAR holds activity of setting up of data-centre constitutes a ‘works contract’ u/s 2(119) of CGST Act, 2017/Karnataka GST Act 2017, taxable at 18% GST as per Entry No. 3(ii) of Notification 11/2017 - Central Tax (Rate); Notes that, the applicant engaged in the sale of IT products and services, proposes to undertake projects for setting up of data-centre facilities for its clients including government agencies/bodies; Further, observes that the said activity woul...