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Gst on services to local authority

BHARATH KUMAR SHETTY (PRACTINCING COST ACCOUNTANT) (75 Points)

10 July 2018

Supply of water to residents is taken up by local authority through agents. While water in bulk is exempted from GST and the services from local authority in relation to supply of water is also exempted, what is the implication of GST on the services made by the agent to the local authority?

If he is unregistered, whether the local authority is bound by reverse charge mechanism?

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2 Replies

Pankaj Rawat (GST Practitioner) (55032 Points)
Replied 10 July 2018

No ,.. if agent unregistered then No GST is applicable at all , as well as no RCM is to be done by Local Authority as RCM on inward supplies from URD is deferred till 30/9/2018

BHARATH KUMAR SHETTY (PRACTINCING COST ACCOUNTANT) (75 Points)
Replied 11 July 2018

Dear Rawat,

It is informed that as per Notification No.12/2017 Central Tax (Rate), pure supplies to local authorities in connection with the activities listed as per the Constitution unde Section 243W /G is exempted.Moreover the commodity "water" is also exempted (unless sold in sealed containers and otherwise...)

Hence the issue of RCM does not arise at all even if implemented.

Thank you very much for the interest shown on my query

Regards,