GST on Drinking Water supply project ( supply of pipes and laying

[N Balachandran]

We are epc contractor and executing the drinking Water supply project (supply and laying of pipes including other related works). The project started in the month of June 2017 and raised First R A bill on 23rd of July 2017.with GST @ 12%. Now, GST authority asking us to pay the GST @ 18% since the notification was issued vide Notification No 20/2017 dt 22 08 2017. reduced GST rate @ 12 is applicable with effect from 22 08 2017.

Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal - 6% CGST + 6% SGST.

Under these circumstances, is there any notification for GST @ 12% applicable for the above said project prior to 22 08 2017.

Balachandran N

AI Summary

GST rate classification on works contracts: invoice timing and amendment effective date determine applicable rate.
Dispute over applicable GST rate for a municipal drinking-water pipeline works contract: tax authorities assert the higher pre-amendment rate applies to invoices issued before an amending notification; the contractor invokes AAR precedents that an amendment without an explicit effective date takes effect from its publication, the invoice-timing Time of Supply rule, composite works contract classification, and transitional provisions preserving pre-GST tax treatment as operative defences.