FINANCE (WR.!) DEPARTMENT G.O.MS.No. 58 Dated: 08-05-2018 Read the following: 0t.13.09.2017, 4. Letler NO.ENC.WIPEMEE NOE. PIAEE(KVSOR-2017-18(00st GSTYVoL1 0t.26-03-2018, Goverment constituted a committee to Jormulate guidetines on implementation OFGST in works contracts in G.0. {rong ‘above, 2. In the minutes of the meeling 2™ cited, the Committee recommended certain uidelines on implementation of GST" Ger tte eter kad) the Enainenraecon of (Acinin.) (FAC) & Chainman, Board of phief Engineers (BoCEs), Viayawads hae Submitied the minutes of Board of Cher pp gineers dated 26-09-2017 and 2-2-2000 ae following recommendations are mags by the Board of Chief Engineers © During the 8" Board of Chiet Engineors meeting during the year 2017. Uightlt on 26-8-2017, members dieeaeene fegarding schedule of sare 0 he Year 2017-18 im order to compiy vag T system to Which are ee yes all materials eter deleting fo elemenis which are subsumed under GST syerern ratios MOMBETS discussed the matter In deta and agreed to (ravers, artved for Water Resources hen (Part), R&B items, (Pare), Building tems (Part) PH teres (Partl¥) after deleting the Epiaumed lanes tke VAT, Excise dot che The Board of Chiet poeneers finaly recommended to incase te basic rates in the SoR 2017-18 without any Tax elements ang Suggested that during piles cn of estimates the 12% GST rate tomeee works contract is Stimated Contract Value andis to be provided in oes 8 of estimate, G). During the 1 Board meeting of 2018 held on 22-02-2018, members Engine’ regarding hire charges of machinery tice Most of the Chief Engineers informed that most of the oan uling agencies brought to the Rolice of CES regarding reduction of hive charges as the hire charges VAT and bce tal coat of machinery was reduced In meee. nt of KAT and Excise Duty, and requoaied to tesla ue eartier rates as the: Agencies cannot claim input Tax cresitproesen ¢ot SOR 2017-18 wet, 1" duly aoe ‘communicated vide Proceedings No. ENCMWISE(PEM) dt. 13.70.2017, Ghlet (Acmn.) (FAC) & Chairman, Bosal oy Chier “Sauested to Issue orders on the following vide inns” 9) Contracts ether concluded prior to or attr 01.07.2097 with the SSR 2016-17 or Prior SS Rates (wherein tax element is incleds under the category of works Chiet COvetMeNt after careful examination of {he recommendations of the Board of Chief Engineers hereby accept ihe fallowing {@) Since the SOR relates to the year 2017-18 and the GST was introduced Hat act om 01-67-2017, reducing the unit coer of ail the materials as well as hire charges, by the subsumed tance embedded therein. The rate Of GST fixed @18% (8% Cast and On SGST) for the work contracts GoM 01-07-2017 to 21-08-2017 and GST @12% (6% CEST and B% AST) from 22-08-2017 with input tex cx, (©) With effect trom 13.10.2017 the works contract involving predominantly staat geet fie constituting more than 75% of ire value of the work) attract 5% GST with input tax credit (©) Regarcing contracts concluded prisr to or ater 01.07.2017 with the 2016. {7 Prior SSR rales (wherein tax elemento Included) ) Revised Estimates have to be agora Separately duly spitting Sanctioned estimate Sor, (0) Supplemental agreements are to be concluded with the arrived unit Or oy exauding tax element) for the work erento on or after 61.07.2017 and GST as applicable has to te added to the bill amount. (i) Payments are 10 be allowed duly adjusting the already made ayments in the intermediate bills&. | Tax llablity under GST shall be taken into consideration at the time of invoicing She ayment there on as per the terms and conditions ar ane agreements between the Contractors and Engineering Departments. Departments shall ensure that there shail not be any excess payments to the Agencies 2. cAS the TDS provisions of GST Act are not in Operation now, contractors are liable rotresna"ae their tax lability fuly as per the provicene ef SST Act while filing the retums, (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) MUDDADA RAVICHANDRA PRINCIPAL FINANCE SECRETARY TO GOVERNMENT (Fac) To All The Departments of Secretariat All The Members of the Committee, All Engineering Departments, All The Corporations, The Accountant General, A.P., Hyderabad. ‘The Director of Works Accounts, !brahimpatnam, Vijayawada The Chief Executive Officer, APCFSS, Ibrahimpatnam, Vijayawada, Copy to: The B'S: (0 Principal Secretary, Chief Minister's Office, A,P Secretariat, Velagapud The B.S: 19 Finance Minister, AP. Secretariat, Velasapenl The P.S. to Chief Secretary fo Goverment, Ap Secretariat, Velagapud qhs P.S. 10 Principal Finance Secretary, A.P Secretariat, Velagapuai SCISF. JFORWARDED :: BY ORDER! SECTION OFFICER