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 rate on works contracts: concessional rate applies only when recipient is government; otherwise standard rate applies.
Notification entry granting a concessional rate applies only when the recipient is a government, governmental authority, local authority or government entity; a statutory autonomous trust like the Devasthanam is not a government entity, so the concessional rate does not apply and the works contract supplied to such recipient is taxable at the general rate for composite works contract services.