GST Rate for EPC Contractors

For constructing a new municipal waste processing plant


gst-rate-for-epc-contractors

As per Sr. No. 3 of Notification no. 12/2017 – CT (Rate) dated 28.06.2017; pure services excluding works contract service is provided to the Government, Local authority, Governmental authority or 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 then, it will be exempted from GST.

However, if the contract of services is along with goods and such contract results into Composite supply of goods and services i.e. Works Contract Services then the implications are discussed as under:

1. If value of supply of goods is not more than 25% of the total value of the composite supply provided to the Government 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 then, it will be exempted from GST as per sr. no. 3A of Notification no 12/2017-CTR.
2. If value of supply of goods is more than 25% of the total value of contract then GST will be applicable @ 12% as per Sr. No. 3 (iv) (e) of Notification no. 11/2017 – CT(Rate) dated 28.06.2017.