Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL

GST rate on EPC works: distribution infrastructure treated as commercial use, so 18% applies to OPTCL contracts.

Applicability of GST on EPC contractors' Composite Supply of Works Contract Service to OPTCL depends on whether the project is predominantly for non commercial use and whether the work is entrusted to OPTCL by a government authority; if both conditions under the concessional notification entry are met, GST is 12%, otherwise the residual entry attracts GST at 18%. The department clarifies that distribution of electricity is commercial and industrial use, so EPC works for OPTCL attract GST at 18% unless formally entrusted work and non commercial use criteria are satisfied.