GST – States – 10034/CT/POL/56/3/2017-Policy – Dated:- 6-7-2018 – 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 @ 12% (CGST @ 6% and OGST @ 6%) or 18% (CGST @ 9% and OGST @ 9%). In this connection, our considered views are furnished below. 1. GST rate on
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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 Government Entity was not there at that time. This concept was subsequently inserted in column 3 against Sl. No. 3(vi) on 13.10.2017. The conditions mention
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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 profession. 7. After due consultation with Department of Revenue (Government of India), it is hereby clarified, that Distribution of Electricity qualifies as a Commercial and
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