Service tax on Work Contrat services

[N Balachandran]

Dear sir,

Can u please clarify the contract for supply of pipes and laying for water supply project to TWAD & CMWSSB will attract GST @ 12% or !8%. if it is GST @ 12%, can we claim the refund of Excess Credit available ( Un utilised credit ) in this project. What is rate of GST applicable to Sub contractors who has been engaged for this project.

As per recent decisions taken at 20^th GST Council meeting held on 5^th August 2017.

Description of service	From	To
Works contract services provided to Government, local authority or governmental authority and in respect of post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system	18% with full ITC	12% with full ITC

AI Summary

GST Rate for Water Supply Pipe Contracts Set at 18% with Full ITC; No Refund for Excess Credit A discussion in a forum addresses the GST rate applicable to a contract for supplying and laying pipes for a water supply project to government authorities. The query seeks clarification on whether the GST rate is 12% or 18% and if a refund on excess credit is possible. Responses indicate that the GST rate is 18% with full input tax credit (ITC) until a notification is issued to reduce it to 12%. There is no provision for a refund of unutilized credit, and the rate remains the same for both contractors and subcontractors.