TaxTMI 
TaxTMI 
GST applicable on water projects for Water & Sewage Board
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....ST applicable on water projects for Water & Sewage Board<br> Query (Issue) Started By: - N Balachandran Dated:- 2-2-2022 Last Reply Date:- 7-2-2022 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>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 Ce....
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....ntral and state Govt is attracting @ 18% w e f 01 01 2022 as per the recent notification. Regards N Balachandran Reply By KASTURI SETHI: The Reply: The word, 'Local Authority' has not been omitted. 12 % continues. For more details, see Issue ID 117699 dated 14.12.21. Reply By SOWMYA CA: The Reply: Works contract will constitute a supply of service and a uniform rate of tax applicabl....
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....e on same value across India. 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 f....
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....or (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal - 6% CGST + 6% SGST Reply By CAHemanth Kumar: The Reply: 3[(iii) 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 12[Central Government, State Government, 129[Union territory or a local authority]] by way of construction, ere....
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....ction, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, - a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); canal, dam or other irrigation works; pipeline, conduit or plant f....
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....or (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. This entry covers local authority also. rate of tax will be 12 % Reply By KASTURI SETHI: The Reply: Dear Sir, Comprehensive and excellent reply by you. In continuation to your reply I am adding some thing. "canal, dam or other irrigation works;" Construction of canal and dam will be eligible for....
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.... concessional rate of 12 % only if meant for irrigation purpose. Just added. Not deficiency in your reply. Reply By N Balachandran: The Reply: Thanks to all who have shared their opinion and clarification in respect of query raised by me Reply By Amit Agrawal: The Reply: There is no change in tax-rate (i.e. 12%) if service-recipient is 'Central Government, State Government, Union territory....
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.... or a local authority'. However, tax-rate has increased from 12% to 18% w.e.f. 01.01.2022 when service-recipient is 'a Governmental Authority or a Government Entity'. Subject of the query says service-recipient as 'Water & Sewage Board' wherein details of query states that 'Water supply Projects being executed for Municipal Corporation (Local authority)' Now, general....
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....ly speaking, such types of board does not fall into category of 'Central Government, State Government, Union territory or a local authority'. And they typically falls under 'a Governmental Authority or a Government Entity' who in-turn work for 'Central Government, State Government, Union territory or a local authority' I suggest that one must first decide 'who is servi....
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....ce-recipient and status thereof' before continuing with tax-rate @ 12%. If service-recipient is 'a Governmental Authority or a Government Entity' (& not a local authority), then tax-rate has increased to 18% w.e.f. 01.01.2022 onwards. Above views are strictly personal and same should not be taken as professional advice.<br> Discussion Forum - Knowledge Sharing ....