Hi,
Is GST applicable on street lights maintenance contract by a contractor to Local Authority ?
It's not covered under pure services.
Contractor installed the street lights , they maintain it & replace it whenever required.
No fees is charged on the installation & street lights .8 years contract.After 8 years street lights will be asset of Local Authority.
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GST on Street light maintenance to Local Authority
Replies (1)
| Street light maintenance services to local authorities attract GST at 12%. Here is the detailed position: 1. GST Rate: Services by way of repair and maintenance of street lights are 'Works Contract Services' (if involving both goods and services) or 'Pure Services' (if only labour/maintenance). For services to local authorities (Panchayat, Municipality): - Pure Services (maintenance without supply of goods): Exempt under Notification 12/2017-CT(Rate), Entry 3 — 'Pure services (excluding works contract) provided to Government/Local Authority relating to any function entrusted to them under Article 243G or 243W of the Constitution.' Street lighting is indeed a function under 243W — so PURE SERVICES for street light maintenance to local authority may be EXEMPT. - Works Contract (repair + replacing materials): Taxable at 12% under Notification 11/2017-CT(Rate). 2. Key Distinction: If your contract is ONLY for maintenance/labour with no supply of material (like just replacing bulbs, minor repairs using client-supplied material) — it's pure service → likely exempt. If you are supplying materials (poles, wires, LEDs) as part of the contract → Works Contract → 12% GST. 3. Practical Advice: Review your contract carefully. For maximum compliance safety, issue invoice at 12% if any materials are involved. If purely pure service, take a written confirmation from the local authority that all materials are supplied by them. |
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