HC Holds TTD a Governmental Entity for Concessional GST on Works Contracts

Case Details: P. Venugopal Naidu vs. Union of India - [2026] 185 taxmann.com 770 (Andhra Pradesh)

Judiciary and Counsel Details

• R. Raghunandan Rao & T.C.D. Sekhar, JJ.
• M.V.J.K. Kumar for the Petitioner.
• Y.V. Anil Kumar, Central Govt. Counsel & N.V.S. Prasada Varma for the Respondent.

Facts of the Case

The petitioners, contractors engaged in execution of works contract services, provided construction services to Tirumala Tirupati Devasthanams (TTD) and claimed concessional GST rate of 12% under the relevant GST notifications applicable to supplies made to Governmental authorities/entities. It was contended that TTD was constituted under a state enactment, had a board and officers appointed and controlled by the State Government and it discharged functions akin to a local authority, thereby satisfying the criteria of Governmental authority/entity. The petitioners further submitted that, where contracts provided for reimbursement clauses, they were entitled to recover the differential GST arising from rate changes during the relevant period. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that TTD qualifies as both a ‘Governmental Authority’ and ‘Governmental Entity’ under Section 9 of the CGST Act read with Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017, as amended by Notification Nos. 20/2017-CGST (Rate), 24/2017-CGST (Rate) and 31/2017-CGST (Rate). It held that the statutory criteria of 90% government control and performance of municipal/panchayat functions were satisfied as TTD was constituted under statute, fully controlled by the State Government, and its executive officer discharged civic functions in the Tirumala Hills area. It further held that eligibility for the concessional rate of 12% under Sl. No. 3 of Notification No. 11/2017 for works contract services under Heading 9954 depended on factual verification of whether the works fell within the specified categories under Section 8 and Section 9 of the CGST Act. Accordingly, the Court remanded the matters to the authorities for fresh adjudication after due hearing.