Sir
We are EPC contractor executing Drinking water supply projects involves supply of pipes and laying including civil works and also under Under ground drainage projects for Govt authority including Municipal corporations.
Question is :
1. GST is applicable on the above projects if so , What is rate of GST is applicable ?
As per recent Notification No 13/2023-Central Tax (Rate) dt 19 10 2023, Nil rate of GST is granted to
a) Water supply
b) Public Health
c) Sanitation converancy
d) Solid waste Management and
e) slum improvement and upgradation. vide 3B of Chapter 99 (amended the Notificaiton No 12/2017-Central Tax (Rate) dated 28th June 2017.
in view of the above notification , Kindly clarify the applicable GST on the above said project
Regards
N Balachandran
GST Exemption Complexity: Works Contract Services for Water Supply and Drainage Projects Not Automatically Exempt Under Recent Notification An EPC contractor inquired about the applicability of GST on drinking water supply and underground drainage projects for government authorities. A recent notification exempts certain services, including water supply and sanitation, from GST. However, one respondent clarified that the contractor's services are classified as 'Works Contract Services' and are not exempt under the notification. Another respondent highlighted the need to examine contractual terms and the nature of supply to determine eligibility for exemption, emphasizing that exemptions apply to services provided to governmental authorities and must be assessed independently. The discussion underscores the complexity of GST exemptions in specific service contexts. (AI Summary)
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