GST is not applicable on services of design engineering and contraction of water tanks by the Government Authority
The Uttarakhand AAR, in the case of M/s. THDC India Limited, held that there is no applicability of the RCM as per the provisions of the Notification No. 13/2017-Central Tax (Rate) dated June 28, 2017, as the supplier of services is not a “Local Authority”. Also, the services provided under the referred MOU i.e. design engineering and contraction of the water tank by the Government Authority are exempt in view of the provisions of the Notification No. 12/2017-Central Tax (Rate), dated June 28, 2017, as amended, as the supplier of services falls under the category of a “Governmental Authority”. In the instant case, the applicant being a receiver of services, there was no applicability of GST under Forward Charge.