GST Rate Applicable as on 31-03-2022 Works contract (Road Work) to Govt. Entity, Goods and Services Tax - GST

[sacheen Patil]

Hello Sir/Madam

What is the GST rate applicable as on 31-03-2022 for Works contract from Govt. Entity.

scenario 1 & 2 as below

1) Road Work not for general public use i.e. service road besides canal.

2) Road Work for general public use i.e. service road besides canal for the use of farmers

Thank you.

Posts / Replies

[Shilpi Jain]

Road whether for use for general public or otherwise is to be regarded as road and the rate of tax for both have to be the same.

[sacheen Patil]

 Shilpi Jain Madam,

Please guide me with below

POINT NO I

"irrigation work"  as defined in THE KARNATAKA IRRIGATION ACT, 1965.

(h) "irrigation work" includes,-
(i) all reservoirs, tanks, wells, anicuts, bandharas, ponds, spring ponds, canals, field-channels, thalapariges, pipes, channels, aqueducts and sluices constructed, maintained or controlled wholly or partly by Government for the supply, conveyance or storage of water;
(ii) all works, embankments, structures, supply and escape channels, connected with such reservoirs, tanks, anicuts, bandharas, channels, canals, pipes, sluices, and all roads constructed for facilitating the construction or maintenance of such reservoirs, tanks, anicuts, bandharas, canals, channels pipes and sluices;

POINT NO II

GST RATE IS 18% for Supply of service to Governmental Authority or a Government Entity, as per Notification No. 22/2021- Central Tax (Rate) Dated: 31st December, 2021

(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 Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, -

(a) 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); (

b) canal, dam or other irrigation works;

(c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal.

POINT NO III

GST rate applicable is 12% 

(iv) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,-

(a) a road, bridge, tunnel, or terminal for road transportation for use by general public;

Thank you

[Sadanand Bulbule]

In my opinion, the road on the side of the irrigation canal is integrated part of canal itself. And such service roads  are not for general public use except for the departmental authorities. Further such service road does not come under the control/property of the Local Authorities, but the Irrigation Department since such land is also acquired from the land owners while constructing the irrigation projects.