Summary
- The Rajasthan Authority for Advance Ruling has determined that the applicable GST rate for works contract services related to faecal sludge treatment plants as of June 1, 2022, is 12% (6% CGST and 6% SGST).
- M/s MTS-EIEL (JV) sought clarity on the GST rate after incurring an additional burden due to a subsequent increase to 18% following a rate change.
- The ruling confirms the historical rate but does not address whether the applicant can recover the extra tax from the contracting party.
- This decision could impact future contract pricing and tax recovery negotiations in similar infrastructure projects across India.
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