GST
TRT-2025-
AAR Karnataka
Date:-17-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 17 February 2023
Facts –
- The Applicant, M/s Suez India Private Limited, is a leader in water resource management. They have entered into a contract agreement with Bengaluru Water Supply and Sewerage Board (BWSSB) on 21.04.2022 for the work of design, upgradation and rehabilitation of existing 248 MLD capacity used water treatment plant at K & C Valley, Bengaluru.
Issue –
- Whether the services provided to Bengaluru Water Supply and Sewerage Board would be taxable?
Order –
- The AAR held that BWSSB was set up by The Bangalore Water Supply and Sewerage Act 1964, to supply water in Bangalore Metropolitan area and to make adequate provision for the sewerage and disposal of sewage in the Bangalore Metropolitan area. These duties performed by BWSSB are covered under the functions entrusted to a Municipality under article 243W of the Constitution that is 5th and 6th entry of 12th schedule of the constitution. Hence the same can be considered as Governmental Authority.
- The entry 3(iii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 itself was omitted and now the works contact services supplied by the Applicant to BWSSB is covered under entry No.3(xii) of the same Notification. Thus the works contract services provided by the Applicant to BWSSB are covered under this entry and the same is exigible to GST at 18%.
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