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?
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,
CAclubindia
