GST is leviable at 18% on providing services of water supply projects to Uttar Pradesh Jal Nigam: AAR

Case Details: Authority for Advance Rulings, Uttar Pradesh Indian Hume Pipe Company Ltd., In re - [2023] 146 taxmann.com 334 (AAR-UTTAR PRADESH)

Judiciary and Counsel Details

• • Vivek Arya & Rajendra Kumar, Member
  • Manish R. Goel, CA for the Applicant.

Facts of the Case

The applicant entered into contract of providing services of commissioning and maintenance of water supply projects to Uttar Pradesh Jal Nigam. It filed an application for advance ruling to determine taxability of services provided to Uttar Pradesh Jal Nigam (UPJN).

AAR Held

The Authority for Advance Ruling observed that Chairman and members of UPJN would be elected by State Government and not inhabitants of local area. Moreover, no local fund would be entrusted by Government with UPJN and therefore, it would not qualify as local authority. Thus, it was held that the benefit of concessional rate of GST of 12% would not be available and these services would be taxable at 18% as per residual entry at S. No. 3(xii) of Notification No. 11/2017-CT(R).