Rate of tax (service)— In the instant case, the applicant  is executing works for Hyderabad Metropolitan Water Supply and Sewerage Board is desirous of obtaining clarification regarding the rate of tax on such works.

Questions raised for advance ruling is as follows—

GST rate of tax on TS Government, HMWSSB work contracts including material & services and services only.

The contracts executed by the applicant fall under at S.No. 3(vi) of Notification No 11/2017 (central tax rate) this service is taxable @6% CGST & SGST each.

However this entry was amended in Nov’ 2021 vide Notification No. 15/2021 dt. 18.11.2021 and the phrases ‘Government Entity’ & ‘Governmental Authority’ were deleted from the Entry at S.No. 3(vi) of Notification No. 11/2017 with effect from 01.01.2022. Thus the works executed for ‘Governmental Entity or ‘Government Authority’ from 01.01.2022 are taxable @9% CGST & SGST each.

Held that— 

For works contract including material & services the rate of tax applicable upto 31.12.2021 is 6% of CGST & 6% of SGST, and from 01.01.2022 the rate of tax is 9% of CGST & 9% of SGST.

For pure services not involving any material the transaction is exempt.