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 government works contracts may change only upon notification; subcontractors treated same and unutilized ITC non refundable
The GST Council recommended lowering the GST rate on works contract services supplied to government or local authorities to a reduced rate with full ITC, but that recommendation is effective only when the rate notification is amended; until amendment the existing higher rate with full ITC applies. No refund of unutilised input tax credit is available, and the same GST rate applies to contractors and subcontractors providing the same services.