GST on excavation of Sand and Loading into Lorries

[ABHISHEK Kumar]

Dear Sir,

What is GST rate on GST on excavation of Sand and Loading into Lorries. The assessee has won contract for mining of sand.Whether GST applicable is 5%, which is applicable in case of Natural Sands Of All Kinds HSN- 2505 or 18% applicable in case of EXCAVATING AND EARTHMOVING SERVICES SAC- 995433.

AI Summary

Debate on GST Rate: Is Sand Excavation a 5% Natural Sand Supply or 18% Excavation Service? A discussion on the applicable Goods and Services Tax (GST) rate for the excavation and loading of sand into lorries centers on whether the service falls under a 5% tax rate for natural sands or an 18% rate for excavation services. Participants debated whether the transaction is a composite supply, potentially qualifying for a 5% rate, or a service subject to 18% GST. The complexity arises from the classification of the activity and its implications on tax rates, with suggestions to seek professional advice due to potential significant financial impacts.