GST applicable on water projects for Water & Sewage Board

[N Balachandran]

Sir,

Can u please clarify , Whether GST @ 12% or @18% is applicable on Water supply Projects being executed for Municipal Corporation ( Local authority ). Since the works contract executed for Central and state Govt is attracting @ 18% w e f 01 01 2022 as per the recent notification.

Regards

N Balachandran

AI Summary

GST Rate for Water Supply Projects: 12% for Municipal Corporations, 18% for Governmental Authorities per 2022 Notification A discussion on the applicable Goods and Services Tax (GST) rates for water supply projects executed for municipal corporations, categorized as local authorities. The main query revolves around whether the GST rate is 12% or 18%, following a notification effective from January 1, 2022. Responses clarify that a 12% GST rate applies to works contracts for local authorities, such as municipal corporations, while the rate increases to 18% for governmental authorities or entities. Participants emphasize identifying the correct category of the service recipient to determine the applicable tax rate.