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Rate of gst applicable on digging borewell along with giving pumpset and installing it

Rate / HSN codes 1056 views 1 replies

GANESH BHAT

4 Points Joined August 2020

Hi all,

My father was awarded with state government work where he had to dig borewells for the economically backward classes, energising it, giving submersible pumpset along with items like pipe and fittings and movable pump house.

Please let me know what percent of gst would attract the entire work.

As i feel it is composite kind of work and not work contract and principle supply would be supply of service that is digging borewell, it should attract with 0% gst

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per Notification 2/2018 CT (R)
Composite supply of goods and services in which
the value of supply of goods constitutes not more
than 25 per cent. of the value of the said composite
supply provided to the Central Government, State
Government or Union territory or local authority
or a Governmental authority or a Government
Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution Is Exempted .
So if your services cover under above it's Exempted.