Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL
10034/CT/POL/56/3/2017-Policy Dated:- 6-7-2018 Orissa SGST
GST – States
Saswat Mishra (IAS)
Commissioner of CT & GST, Odisha
(Finance Department, Government of Odisha)
Banijyakar Bhawan
Cantonment Road
Cuttack – 753001
Dated 06/07/2018
No. 10034/CT/POL/56/3/2017-Policy
To
Chairman-cum-Managing Director
Odisha Power Transmission Corporation Ltd. (OPTCL)
Bhubaneswar
Sub: Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL
Sir,
OPTCL has sought for clarification as to whether its EPC works contractors shall, while billing to OPTCL, charge GST @
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ecuting various projects make 'Composite Supply of Works Contract Service' to OPTCL, as defined in the GST Acts. Therefore, such Composite Supply of Works Contract Service by the EPC contractors to OPTCL is chargeable to GST. The question, however, is whether GST on such supply is chargeable @ 12% or @ 18% ?
3. Such Composite Supply of Works Contract Service by the EPC contractors to OPTCL will be taxable @ 12% if it falls under Serial No. 3(vi) of the updated version of the Notification dated 28.06.2017. But if it does not fall under Serial No. 3(vi), it will fall under the residual entry at Serial No. 3(xii) and will be taxable @ 18%.
4. It is very pertinent to mention that S.No. 3(vi) was inserted on 21.09.2017. The concept of 'Governm
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* Indian Railways and NHAI are treated as Central Government.
* But Government Companies/Corporations such as IRCTC, BSNL, (TDC, OTDC, IDCO, NALCO, SAIL, NTPC, etc. are not treated as Government. They are also not 'Local Authorities'.
YES
If the project is in relation to a work entrusted to OPTCL by the Central Government, State Government or a Local Authority.
GST @ 12% is applicable
If the project is in relation to a work not entrusted to OPTCL by the Central Government, State Government or a Local Authority
GST @ 18% is applicable
6. The moot question in this case is whether these projects of OPTCL, executed through EPC works contractors, are meant predominantly for use other than for commerce, industry or any other business or p
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