In re The Indian Hume Pipes Company Ltd. (GST AAAR Uttar Pradesh)
18% GST applicable to works contract services provided to UP Jal Nigam
The AAAR, Uttar Pradesh in the case of M/s the Indian Hume Pipes Company Ltd. (Appeal Order No. 05/AAAR dated March 10, 2023) has held that, the assessee providing works contract services to Uttar Pradesh Jal Nigam (“UP Jal Nigam”), a government authority, would be liable to pay GST @ 18%.
Facts:
M/s. Indian Hume Pipe company Ltd. (“the Appellant”) undertakes contracts for construction of head works sumps, pump rooms, laying jointing of pipeline and commissioning and maintenance of the entire work for water supply projects/ sewerage projects/ facilities.
The Appellant provides services to Government bodies/ entities/ authorities mainly, to UP Jal Nigam. The Appellant was of the view that the UP Jal Nigam is a local authority and thus, the services provided would be taxed @12% as per S No. 3(iii) of the Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 (“the Services Rate Notification”).
This appeal has been filed against the Advance Ruling Order No. UP ADRG — 12/2022 dated 23.11.2022 (“the Impugned Ruling”) passed by the AAR Uttar Pradesh, wherein, it was ruled that the UP Jal Nigam is a governmental authority and the Appellant would be liable to pay GST @ 18% on services provided to UP Jal Nigam.
Issue:
Whether UP Jal Nigam is a governmental authority or a local authority?
Held:
The AAAR, Uttar Pradesh in Appeal order No. 05/AAAR held as under:
