Facts –

• The Applicant, M/s BHORI LAL MOHAN LAL, is engaged in construction services.
• The applicant submitted that it undertook a work contract tendered by the Rajasthan Housing Board (‘RHB’) on 25.01.2021, under the scheme of Chief Minister Jan Awas Yojna 2015 programme to construct EWS-256 No's Flats (G+12) for the Economic Weaker Section.
• RHB was levying and charging the applicable GST rate, i.e. 6% each CGST and SGST on the bill amount passed for the applicant prior to the amendment dated 18.11.2021 in the central tax rate.
• The applicant further submitted that, post amendment in the Central Tax rate vide notification no. 15/2021 dated 18.11.2021, RHB charged GST at 9% each CGST and SGST on post bills passed after 01.01.2022 from the applicant.

Issue –

• whether applicant’s tender of work contract under Chief Minister Jan Awas Yojna, is subjected to 9 % CGST and SGST each post 01.01.2022?

Order –

• The Authority observed that the applicant made a mistake while writing facts and that being the service provider, they are required to pay all GST liability. The service recipient, RHB, cannot levy and charge GST from the applicant.
• It has noted that GST rates for works contract involving construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration rendered to Government or Local authority increased to 18% vide Notification No. 03/2022- Central Tax (Rate) | Dated: 13th July, 2022.
• It concluded that the applicant will be liable to pay GST at the rate of 18% in light of Notification No. 03/2022- Central Tax (Rate) | Dated: 13th July, 2022, as they are providing services to Rajasthan Housing Board.