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Works contract service for construction of the civil structure for govt. entity attract 12% GST

Shanti Prime Publication Pvt. Ltd.

Rate of Tax — This Appeal has been filed by the ITD Cementation India Ltd against Advance Ruling No. 33/WBAAR/2018-19 dated 08.01.2019, pronounced by the AAR west Bengal.
ITD Cementation India Ltd., is a supplier of works contract service and has entered into an agreement with Inland Waterways Authority of India (hereinafter the IWAI), a statutory body established under the Inland Waterways Authority of India Act, 1985, for construction of a multi-modal IWT terminal at Haldia, West Bengal on EPC (Engineering, Procurement, Construction) basis.
The west Bengal AAR held that Applicant’s supply of works contract service for construction of the Multi-modal IWT Terminal at Haldia will attract GST at 18% rate.
Held that— Appellant is supplying works contract services to IWAI, a government entity, for an original work that is meant for infrastructural development of waterways of India and is not meant for commerce and business. It therefore satisfies the conditions laid down under Serial No. 3 (vi) (a) of the Rate Notification. — ITD Cementation India Ltd., In Re…. [2019] 12 TAXLOK.COM 036 (AAAR-WB)