Work Contract Service (Excavation of River/Canal) provided to Government Department is Exempted under GST: Calcutta HC
Please to share the judgment of the High Court of Calcutta In case of WPA 3997 of 2025 [Calcutta High Court] M/s. The Road and Roof Projects Vs. Assistant Commissioner of Revenue, Director of Revenue Intelligence and Enforcement & Ors. The Petitioner challenge the appeal Order as well as Adjudication Order of the GST Authority for demand of GST, where in service provided to Government, Irrigation and Waterways Department for Works Contract job of Excavation of River covering period FY-2020-21 and FY2020-22 and the Petitioner claim exemption under Sl No. 3 of Notification 12/2017-Central Tax, dated 28.07.2017.
Advocate Prasenjit Das, council appear for the Petitioner submits that The GST Adjudication Authority had earlier rejected the claim of assessee for FY 2020-21 and 2021-22 on the ground that the Job done by the Assessee does not satisfy the condition of the notification and ‘ the works of the RTP are not related to any function entrusted to a Panchayat under article 243G and not related to any function entrusted to a Municipality under article 243W of the Constitution of India’.
The Court examined Article 243G and 243W read with 11th Schedule of Constitution of India and Serial No.3 of Notification 12/2017-Central Tax and the relevant provisions of of the CGST Act with Rules.
The Court held that ‘The works which the petitioner has executed is covered under Article 243G read with 11th Schedule of the Constitution under serial no.3, as the nature of job executed clearly concerns watershed development and water management. Having regard thereto, there is no justification in denying the benefit of the Exemption Notification No.12/17 dated 28th June, 2017.
The Court set aside the Adjudication Authority and Appellate Authority’s order and allowed the writ petition, directing the respondent to provide consequential benefits.
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Excavation of River/Canal generally refers to the process of digging, dredging, or removing earth, silt, debris, or other materials from the bed and banks of a river or canal to improve or restore its flow, depth, or capacity.
It is typically done for purposes like:
- Deepening or widening the waterway for navigation or irrigation.
- Desilting to remove accumulated sediment and prevent flooding.
- Channel alignment or reshaping to control erosion or improve flow.
- Construction of new canals or diversion channels.
It can involve manual digging, mechanical excavation with excavators, or hydraulic dredging depending on the scale.
Also Read:
| Title | Description |
|---|---|
| Service Tax on Works Contract for Construction of Canal & Dam | Analyzes taxability of canal and dam construction under service tax; clarifies exemptions for government projects. |
| GST on works contract of dredging a river‑bed for government entity (AAR West Bengal) | AAR ruling on dredging/desilting river/nallah for govt bodies and whether GST applies. |
| Whether drainage of channels and riverbeds is an exempt supply? (AAR West Bengal) | Examines whether excavation of drainage channels and riverbeds for government qualifies as exempt. |
| GST Exemption for Dredging Services: AAR Ruling on Najafgarh Drain | AAR decision on dredging Najafgarh Drain — explores exemption status under GST. |
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