Service tax on Work Contrat services, Goods and Services Tax - GST

[N Balachandran]

Dear sir,

Can u please clarify the contract for supply of pipes and laying for water supply project to TWAD & CMWSSB will attract GST @ 12% or !8%. if it is GST @ 12%, can we claim the refund of Excess Credit available ( Un utilised credit ) in this project. What is rate of GST applicable to Sub contractors who has been engaged for this project.

As per recent decisions taken at 20^th GST Council meeting held on 5^th August 2017.

Description of service	From	To
Works contract services provided to Government, local authority or governmental authority and in respect of post-harvest storage infrastructure for agricultural produce, mechanized food grain handling system	18% with full ITC	12% with full ITC

Posts / Replies

[KASTURI SETHI]

Rate of GST remains the same whether service is supplied by the Contractor or sub-contractor. No provision for refund because of overflowing ITC.

[HimansuSekhar Sha]

When the notf. Will be issued lowering the rate, the same will be applicable. Refund of unutilized credit not possible.

[Rajagopalan Ranganathan]

Sir,

The GST council has recommended in its meeting held on 5.8.2017 to reduce GST from 18% to 12% with full ITC in respect of government works contract. This recommendation will come into effect only from the date Notification No. 11/2017-Central Tax (Rate) dated 28.6.2017 is suitably amended by the Government. Till such time the GST rate will be 18% with full ITC.

[Mayuri Shete]

Does it mean, GST is 12% on works contract service provided to Government authority?