Tax rate on service of utility shifting

Hey Vikram! For utility shifting services like water pipeline shifting, electricity pole shifting done by a highway contractor, the typical GST classification is under SAC (Services Accounting Code).

Relevant SAC Code:

• 995421 — “Support services to agriculture, forestry, fishing, mining and utilities”

This code covers utility services including shifting or laying of pipelines, electricity poles, etc., as a support service to utilities.

GST Rate:

• Usually, 18% GST is applicable on such services provided to government departments like NHAI or others.

• Since this is a service by a contractor related to utility shifting, the 18% slab fits the nature of the service.

Summary:

If the contract is with a government authority (NHAI), and they are the recipient, reverse charge mechanism (RCM)might apply if notified, so check the specific contract terms and GST notifications.