TaxTMI 
TaxTMI 
purchase of underground water line from an unregistered person by a GST holder
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....urchase of underground water line from an unregistered person by a GST holder<br> Query (Issue) Started By: - Balaji G Dated:- 10-7-2024 Last Reply Date:- 27-7-2024 Goods and Services Tax - GST<br>Got 5 Replies<br>GST<br>a company proposes to purchase an existing water pipe line installed by a farmer for irrigation to use for the company purpose in as it is condition. will it be covered under GST.....
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.... Company is registered under GST but may not have ITC benefit as their products are not taxable. kindly give your views. will it come under RCM as it is not in the listed goods or as the pipe work may be considered as a works contract will it attract GST. Reply By Sadanand Bulbule: The Reply: Dear Sir Admittedly in your case no output tax is payable. Hence ITC available in the credit ledger ca....
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....nnot be utilised. There is no RCM on purchase of existing water pipelines from farmers. As existing water pipelines for irrigation are proposed to be purchased on "as is" basis, it does not fall under the definition of "works contract" under Section 2 [119] of the CGST Act, 2017. Reply By Shilpi Jain: The Reply: Is the pipeline owned by the farmer? Or is it only a right in th....
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....e pipeline that he is transferring to you? The pipeline does not come under exclusion in Sch III. Looks to be taxable. Further details may be required. There is no sale of land in this transaction right? Reply By KASTURI SETHI: The Reply: Installed water pipeline may fall under the definition & scope of the term, 'plant' See Chapter 84 of Customs Tariff Act (as made applicable to GST ....
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....Acts) for its taxability. The whole Chapter along with Chapter Notes will have to be carefully perused. Reply By Padmanathan Kollengode: The Reply: I agree with Shilpi Ma'am. Further details as to how the transaction is required. Is it transfer or right? is transfer of land involved? Reply By Balaji G: The Reply: thank you for your timely replies. and sorry for not responding back in tim....
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....e for your queries. apart from the fact mentioned. The farmer does not own the lands. he laid the pipelines through his own land and through other private and public lands at below 3 feet. My rationale for the query is if we purchased the pipe it is taxable. if we executed the work then the services also taxable. so does it provide an option to purchase an executed pipeline to limit the tax liabil....
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....ity? it is the need of the hour to get the water to our facility and we have executed an agreement of sale (not registered) and taken receipt for the payment.. Thank you once again<br> Discussion Forum - Knowledge Sharing ....