GST rates to State & Central Government Organizations

[SATHYHA DEEP]

We are doing Water & Waste Water Treatment Projects to both State & Central Government Organizations like NIMHANS, BHEL, BWSSB etc.

Have a few Queries/Clarifications for which we seek expert opinion.

1) What is the GST Rates for execution of Projects - For Ex: If we undertake execution of STP, WTP Project, which includes Civil work, Erection & Commissioning of Electro Mechanized Equipment till completion & training ?

2) What is the GST Rates for AMC for above said Projects ?

3) What is the rate for providing Consultancy Service to execute the above projects ?

4) Is it mandatory to raise Invoice to Government Organizations ? Usually the contract is awarded through Tenders & most of the times Tender Value is all inclusive of Taxes.

Kindly clarify the above & guide us for better adoption in our area of expertise.

[KASTURI SETHI]

NIMHANS, BHEL, BWSSB do not fall under the definition of Govt. Further query-wise reply is as under:-

1. HSN 9954 12%

2. HSN 9987 18%

3.HSN 9983 18%

4. Yes. It is mandatory.

AI Summary

GST Rates for Water Treatment Projects: 12% on Execution (HSN 9954), 18% on AMC (HSN 9987) & Consultancy (HSN 9983) A query was raised regarding GST rates applicable to projects executed for State and Central Government organizations, specifically involving water and wastewater treatment projects. The questions included GST rates for project execution, annual maintenance contracts (AMC), consultancy services, and invoicing requirements. The response clarified that organizations like NIMHANS, BHEL, and BWSSB do not qualify as government entities. The GST rates provided were 12% for project execution (HSN 9954), 18% for AMC (HSN 9987), and 18% for consultancy services (HSN 9983). It was confirmed that invoicing is mandatory, even if contracts are awarded through tenders inclusive of taxes.