GST RATE ON JCB PROVIDE TO MUNICIPAL CORPORATION

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amol bramhankar

artical tranee

207 Points Posted on 22 April 2023

GST RATE ON JCB PROVIDE TO MUNICIPAL CORPORATION is 5% or other rate

Replies (4)

Quick Summary

GST on providing JCB to a Municipal Corporation depends on nature of supply. If treated as rental with operator, GST may apply at 12%. In some cases, exemption may apply for services to government authorities under specific notifications.

ashish

56 Points Posted on 22 April 2023

As per the GST Act 2017, the GST rate for the supply of JCB to Municipal Corporations is 5%. This is because JCB falls under the category of goods that are used for construction or maintenance of public infrastructure, which are eligible for a reduced rate of GST under Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 24 April 2023

In my view It will cover Under rental services of transport with operator . in such rental services where the cost of fuel is included in consideration charged from recipient is now attracts GST rate 12% from 18/7/2022 vide Notification 3/2022 CT rate which amending principal Notification 11/2017 CT rate

Pankaj Rawat

GST Practitioner

29904 Points Posted on 24 April 2023

Sorry for Above reply:

As it is provided to MC (Government authority) so in term of Notification 12/2017 CT rate under S.no. 4 it is EXEMPTED

Aashok Kumar Sharma

Finance/Compliance Consultant

77994 Points Posted on 06 November 2026

The exemption is conditional:

• Entry 3 of Notf 12/2017-CT(R) exempts "pure services" (no supply of goods) provided to a municipality for any function under Article 243W (Twelfth Schedule), e.g. solid waste management, sanitation, roads and bridges.

• JCB hire with operator, where the provider supplies fuel: the supply involves goods (diesel), so many AARs hold it is not a "pure service" and the exemption fails. Then it is renting of machinery with operator at 18% (SAC 9973/9966 by nature).

• JCB hire where the municipality supplies fuel and the work relates to a 243W function: exemption applies, i.e. Nil.

• Entry 3A (composite supply with goods up to 25% of value) applies only to Panchayat/Municipality functions under 243G/243W. Check whether that fits.

• Keep the work order showing the specific municipal function. It decides the exemption.

• TDS: the municipality deducts GST TDS at 2% under Sec 51 if the contract exceeds Rs 2.5 lakh and the supply is taxable.