GST WORKS CONTRACTS IN RESPECT OF PUBLIC UTILITY BUILDING

[giri gattupalli]

Respected Sir,

One of my client executed works contract for Tirumala Tirupathi Devasthanams for Peligrim accommodation building in the year 2020 and paid GST @  12% and now the GST Department is asking for 18% rate of tax as the TTD is not a Government Department and I request to you please clarify the rate of tax whether it is 12% or 18% in respect of works contract provided for construction of public utility building.

Thanking you Sir,

AI Summary

GST dispute over 12% vs 18% on works contract for pilgrim accommodation where religious trust not treated as government A contractor executed a works contract in 2020 for pilgrim accommodation and paid GST at 12%; the tax authority seeks 18% arguing the recipient is not a government body. The legal position cited: the concessional 12% rate under the relevant GST notification applies only when the recipient is the central/state government, a local authority, governmental authority or government entity. A statutory autonomous religious trust is not treated as a government body by courts, so the concessional rate would not apply and the general 18% rate for works contracts is likely applicable; challenges may consider limitation or allegations of suppression.