TTD A "Governmental Authority" For GST, 12% Rate For Contractors Not Automatic: Andhra Pradesh High Court

The Andhra Pradesh High Court on 3 March 2026 held that Tirumala Tirupati Devasthanams (TTD) qualifies as a “Governmental Authority” and “Governmental Entity” under GST notifications. However, the Court clarified that contractors can claim the concessional 12% GST rate only if the works they execute meet the conditions specified in the notifications.

A Division Bench comprising Justices R. Raghunandan Rao and T.C.D. Sekhar was hearing a batch of writ petitions filed by contractors who executed contracts for TTD between 1 July 2017 and 1 July 2022. The Bench observed:

“The finding of this Court that the TTD Board is a Government authority or a Government entity, is based on the provisions of the notifications and this finding shall not be treated as a finding that the TTD is a Government authority or a Government entity, for other purposes.”

The petitioners argued that GST was payable at 12% under Notification No. 11/2017-Central Tax (as amended), while the Department sought to levy GST at 18%. The respondents—including the Union and State Governments and TTD representatives—contended that TTD does not perform functions entrusted to municipalities or panchayats under Articles 243W and 243G of the Constitution, and therefore does not qualify for concessional GST.

The Court reviewed the statutory framework and notifications. It noted that the original notification prescribed GST at 18%, but later amendments reduced it to 12% for specified works executed for a Government, Governmental Authority, or Governmental Entity. The dispute centered on whether TTD meets these definitions.

The Court examined TTD's legal status under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 and relevant Government Orders. It found that TTD is established by statute, fully controlled by the State Government, and performs functions similar to those of a Panchayat, including civic administration of the Tirumala Hills. On this basis, the Court held that TTD qualifies as both a “Governmental Authority” and a “Governmental Entity” under GST notifications.

However, the Court stressed that establishing TTD's status alone does not entitle contractors to the concessional rate. The 12% GST applies only if the works executed fall within the categories specified in the notifications. The Court held that determining this involves factual questions, which cannot be decided in writ proceedings. The Bench stated:

“The notifications, relied upon by the petitioners, would show that such reduced rate of tax would be available only if the works, which have been executed by these petitioners, are falling within the nature of works stipulated under the notifications. The question of whether such works meet these requirements is a question of fact which has not been gone into by the authorities nor can this Court go into these questions while exercising its jurisdiction under Article 226 of the Constitution of India.”

The High Court remanded the cases to the respective Assessing Authorities to determine whether the works qualify for the concessional rate. Where assessment orders had already been passed, the Court set them aside and directed fresh consideration. It further clarified:

“The notifications granting reduced rate of tax came into effect from 13.10.2017, for the period 13.10.2017 to 01.07.2022. Petitioners may claim reimbursement of the differential GST from TTD if their contract provides for it. There shall be no order as to costs.”

The Court reiterated that its finding about TTD being a Governmental Authority/Entity applies only for GST notifications and should not be used for other purposes. Contractors may claim GST reimbursement from TTD where their contracts allow.

Accordingly, the High Court disposed of the batch of petitions.

For Petitioners: M V J K Kumar, Advocate 

For Respondents: Y V Anil Kumar, Central Government Counsel and Advocate, NVS Prasada Varma