Reverse charge on public works department service charges upheld for permissions, reinstatement, road cutting and ground rent.

GST on permission charges, reinstatement charges, road cutting charges and ground rent charges levied by the Goa Public Works Department is payable by the recipient under reverse charge where the department, as a State Government entity, supplies the service to a business recipient within entry 5 of Notification No. 13/2017-Central Tax (Rate). The ruling distinguished this from the department's separate reinstatement contract with a private civil contractor, noting that any GST in that contract forms part of restoration cost and does not mean the department itself is charging GST to the applicant.

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Issues: Whether GST on permission charges, reinstatement charges, road cutting charges and ground rent charges levied by Goa Public Works Department is payable by the applicant under reverse charge under Serial No. 5 of Notification No. 13/2017-Central Tax (Rate).

Analysis: The dispute turned on whether Goa Public Works Department is a State Government department supplying services to a business entity within the scope of entry 5 of the reverse charge notification. The Authority accepted that the Public Works Department of Goa is a State Government department and that, for the first transaction, the applicant is the recipient of the service. It also distinguished that transaction from the separate contract under which the Public Works Department obtains reinstatement work from a private civil contractor, holding that any GST component in that separate transaction forms part of the cost of restoration and does not mean that the Public Works Department itself is charging GST to the applicant.

Conclusion: GST on the permission, reinstatement, road cutting and ground rent charges levied by Goa Public Works Department is payable by the applicant under reverse charge under Serial No. 5 of Notification No. 13/2017-Central Tax (Rate).

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