Concessional GST for subcontracted works contract services depends on privity and the statutory supply chain under the notification.

Concessional GST for works contract subcontract services is available only where the subcontracted supply remains within the contractual chain contemplated by the notification and is linked to the specified Government, Governmental Authority, or Government Entity works. Where the supplier has no privity with the main contractor or the Government recipient, and performs work only for an intermediate subcontractor, the concessional entry does not apply. On the stated facts, the second-tier subcontractor's electrical works were treated as outside entries 3(iii), 3(vi), and 3(ix) of Notification No. 11/2017-Central Tax (Rate), so the supply was taxable at the regular GST rate.

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Issues: Whether a second-tier subcontractor supplying electrical works to a first subcontractor in a government works contract can claim the concessional GST rate available under Notification No. 11/2017-Central Tax (Rate) for works contract services.

Analysis: The concessional entry applies to composite supply of works contract services provided by a subcontractor to the main contractor where the underlying supply falls within the specified categories for Government, Governmental Authority, or Government Entity works. The application of the entry depends on the contractual chain and the identity of the recipient of the subcontracted services. On the facts found, the applicant had no privity of contract with the Government Entity or the main contractor and was executing work only for the first subcontractor. The first subcontractor was not itself the recipient contemplated by the concessional entry, and the applicant's supply was therefore outside entries 3(iii), 3(vi), and 3(ix) of the notification.

Conclusion: The concessional GST rate was not available to the applicant, and the supply was liable to tax at the regular rate.

Ratio Decidendi: Concessional GST for works contract subcontract services is available only where the subcontracted supply is within the contractual and statutory chain contemplated by the notification, and absence of privity with the main contractor or Government recipient defeats the claim.

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