GST on water supply contract

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Jouhar Ali (Querist)

11 June 2019 Person 'A' have contract with municipality for supply of water in his tanker in the different routes of municipality for the period of April to June for an amount of Rs 19 lakh. water for above supply is collected by 'A' from third party at a charge and is supplied throughout the municipality (water is not processed). 'A' is not registered under GST. Queries > Whether GST is applicable for above transaction (supply is only 19 lakh. I.e within the threshold of 20 lakh. no other activity) > Whether GST TDS is to be deducted by municipality. > if municipality deduct GST TDS, can 'A' claim it as refund by taking new registration and filling Refund firm directly without filling any returns. Thanks in advance.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 June 2019 GST is applicable but as your turnover is below 40 lakhs then no need to get registered in GST. TDS is required to be deducted by municipality If you get registered under GST then you have to file all returns then only you can claim refund.

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