Order date – 12 August 2022

Facts – 

• The applicant, The Indian Hume Pipe Company Limited, undertakes contract for construction of Head Works, Sumps, Pump Rooms, laying, jointing of pipe line and commissioning and maintenance of the entire work for water supply projects/ sewerage projects and they have been awarded a contract by M/s. Bangalore Water Supply and Sewerage Board .
• The Applicant has filed an application for Advance Ruling under section 97 of CGST Act, 2017 read with Rule 104 of CGST Rules, 2017.

Issue – 

• What is the taxability of works contract services provided to M/s. Bangalore Water Supply and Sewerage Board?

Ruling - 

• The authorities observed that the supply of services by the Applicant to M/s. Bangalore Water Supply and Sewerage Board is covered by Notification No.15/ 2021-Central Tax (Rate), dated 18th November 2021 r/ w Notification No.22/ 2021-Central Tax (Rate), dated 31st December 2021, read with Notification 11/2017 – Central Tax (Rate).
• The services mentioned in entry 3(iii) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 are subjected to GST at 12% only if those services are supplied to Central Government, State Government, Union territory or a local authority and not when supplied to Governmental Authority or a Government Entity. 
• Since BWSSB is a Governmental Authority, this entry is not applicable to the services supplied by the applicant to the BWSSB with effect from 01.01.2022.
• Therefore, the applicable rate of tax under the Central Goods and Services Tax Act, 2017 on the supplies made by the Applicant to the BWSSB as per the instant application is 18% w.e.f 01.01.2022 as per entry 3 (xii) of No.11/ 2017-Central Tax (Rate) dated 28.06.2017.