Predominantly earth work

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2018 can any one explain Predominantly earth work ? because GST Rate for that is 5%.

does govt work contracts involving sewerage line and system qualify for 5% ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 December 2018 Predaminantly earth work means 75% of work is earth work.
GST is exempt on sewage works.

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2018 Hello sir can you give relevent notification or any other material for GST is exempt on sewage works.

because currently we are paying @ 12 %

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 December 2018 As per the notification no. 12/2017 of GST Act, 2017 dated 28.06.2017 exempt list of services issued by GST Council read as below; complete notification as per Annexure – 6 and Article list under 243W of the constitution of India is as per Annexure – 7.
For the betterment development of Town, City & Villages and in Public Interest we feel that all such Contracts related to Operation & Maintenance of STP Plants and Solid waste Management should come under Rule 243 W and Not Applicable for GST.

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2018 Hello sir Thank you for your reply.
So , Municipal Body is exempt from paying gst but sewerage contract awarded to contractor and sub contractor , in this case contractor and sub contractor has to pay GST ? or Contractor and sub contractor are also exempt ?