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)
\nCommissioner of CT & GST, Odisha
\n(Finance Department, Government of Odisha)
\nBanijyakar Bhawan
\nCantonment Road
\nCuttack – 753001
\nDated 06\/07\/2018
\nNo. 10034\/CT\/POL\/56\/3\/2017-Policy
\nTo
\nChairman-cum-Managing Director
\nOdisha Power Transmission Corporation Ltd. (OPTCL)
\nBhubaneswar
\nSub: Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL
\nSir,
\nOPTCL has sought for clarification as to whether its EPC works contractors shall, while billing to OPTCL, charge GST @<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n 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% ? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n * Indian Railways and NHAI are treated as Central Government. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL10034\/CT\/POL\/56\/3\/2017-Policy Dated:- 6-7-2018 Orissa SGSTGST – StatesSaswat 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 … Continue reading “Applicability of Reduced Rate of GST @12% against the EPC Works Contact already Awarded or to be Awarded by OPTCL”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-12968","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12968"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/12968\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n3. 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%.
\n4. It is very pertinent to mention that S.No. 3(vi) was inserted on 21.09.2017. The concept of 'Governm<\/p>\n
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\n * 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'.
\nYES
\nIf the project is in relation to a work entrusted to OPTCL by the Central Government, State Government or a Local Authority.
\nGST @ 12% is applicable
\nIf the project is in relation to a work not entrusted to OPTCL by the Central Government, State Government or a Local Authority
\nGST @ 18% is applicable
\n6. 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<\/p>\n
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