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

GST classification of sand supply: whether treated as sale of goods or excavation service determines applicable tax treatment.
GST treatment depends on whether the transaction is a sale of sand (goods) or a contract for excavation services: sale of sand follows the goods classification and respective lower rate, whereas excavation and earthmoving services fall under SAC 995433 and attract the residual rate. State ownership of sand and the contractual chain are decisive factual matters that determine whether the contractor supplies goods or only services, and thus the applicable tax characterisation and rate.