- West Bengal AAR held that Jaypee Projects Limited’s water-pipeline works for IIT Kharagpur are classifiable under SAC 99542: the new main water pipeline under SAC 995422 and revamping/repair of the existing network under SAC 995429.
- Both contracts are taxable at 18% GST under Serial No. 3(ii) of Notification No. 11/2017-Central Tax (Rate); the broader SAC 995479 classification was rejected.
- The AAR denied exemption because the contracts were not pure services, involved substantial goods supply (over 75% of contract value), and IIT Kharagpur is not a government/local authority for the relevant exemption entry.
- It also held that although water supply is a Twelfth Schedule function, construction or repair of water infrastructure is not itself “supply of water,” so the exemption cannot be stretched to cover these works.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
