GOVERNMENT OF ANDHRA PRADESH WATER RESOURCES DEPARTMENT From To Sti K.Srinivas,M-Tech MIE.MIGS, All the members of Engineer-in-Chief (Admin), Board of Chief Engineers. Water Resources Department, & Chairman, Board of Chief Engineers, D.No.48-10-9/1,NH Feeder Road, Currency Nagar, Vijayawada - 520008 Lr.No. RC/ENC(AW)/ADA/AEE/24686/Vol.X/2018 Dt. 14-06-2018 Sir, Sub: BOCEs - 2™ Meeting of Board of Chief Engineers’ during the year 2018 held @ 3.00 P.M on 12-04-2018 in the conference hall of the Engineer-in-Chief (Admin ) , Water Resources Department , 1*' Floor , Currency Nagar, Ramavarappadu, Vijayawada - Minutes of the meeting communicated — Regarding. Itis to inform that the Minutes of the agenda items 1, 2 & 3 discussed during the 2 Meeting of Board of Chief Engineers’ during the year 2018 held @ 3.00 P.M on 12-04-2018 in the conference hall of the Engineer-in-Chief ( Admin ) , Water Resourses Department , 1" Floor , Currency Nagar, Ramavarappadu, Vijayawada are placed in the Water Resources Department official web site i. "www.irrigationap.cag.aov.in”. All the members are therefore requested to down load the same and take further necessary action. Encls: As stated above Yours faithfully, Sd/- K.Srinivas , Dt.14-06-2018, Engineer-in-Chief (Admin) Water Resources Department & Chairman, Board of Chief Engineers \/ Copy along with its enclosures communicated to the DEE (C), with a request to place the same in our website, further communicate this letter to all the members of BOCES through their respective Email IDs. ul) Vee or crgnnrin nc ee Engineer-in-Chief (Admin) W “&MINUTES OF THE 2" BOARD OF CHIEF ENGINEERS MEETING DURING THE YEAR 2018 HELD ON 12-04-2018 AT 3.00 PM IN THE CONFERENCE HALL OF ENGINEER-IN-CHIEF(ADMIN), WATER RESOURCES DEPARTMENT, CURRENCY NAGAR,VIJAYAWADA. The 2” Board of Chief Engineers meeting during the year 2018 was convened on 12-04-2018 at 3.00 PM. The minutes containing the recommendations pertaining to agendas 1,2 &3 are as follows: Agenda Item No.1:-Reformulation of SoRs of last 10 years with basic prices (excluding taxes which were subsumed under GST Act)-Reg. The Government of Andhra Pradesh, vide G.O. Rt. No, 1688, Finance(FMU- WR.I) Dept., dated. 28-07-2017, have constituted a Committee to formulate guidelines on implementation of GST in works contracts. Based on the Committee's recommendations, the Government, vide Memo No. 477027/ 297/ 2017 dated. 13-09-2017, had directed to arrive at the unit costs of all the SSR items on emergency basis by constituting select groups entrusting each group with the task of arriving at the basic rate (without the element of tax) for certain items. Accordingly, the Board of Chief Engineers(BoCEs) have met on 26-09-2017 and approved the basic rates for the year 2017-18 arrived after excluding subsumed taxes like VAT and excise duty. The approved basic rates were communicated to all the Engineering Departments, vide this office proceeding no. ENC/IW/SE(P&M)/EE-1/DEE.2/ AEE/SoR 2017-18/ Vol.2 dated. 13-10-2017 and it is also directed to the concerned Departments to work out the relevant parts of the earlier Schedule of Rates(SoRs) for the last 10 years with the basic rates (without tax elements). Meanwhile, the Director of Works Accounts, in his letter no. DWAAP/VJA/Sn.II/U.A1/2017-18PGST/No.226 dated. 13.03.2018, has requested the directions on the following issues on the implementation of GST in works contracts: a) Contracts either concluded prior to or after 01-07-2017 with the 2016-17 or prior SSR rates (wherein tax element is included): Under this category of works: 1. Revised Estimates have to be approved separately duly incorporating the work executed prior to, 01-07-2017 and after 01-07-2017 with GST provision as applicable 2. Supplemental agreements are to be concluded with the arrived unit rates (excluding tax element) for the work executed on or after 01-07-2017 and GST as applicable has to be added to the bill amount.3. Payments are to be allowed duly adjusting the already made payments in the intermediate bills. b) Contracts concluded with the rates as per new SSR 2017-18 (wherein taxes are not included): i. Necessary LS provision must be made in the estimates for the applicable GST. li, Orders of Government are required to add the applicable GST element to the bill amount. c) Works contracts involving earth work more than 75% of value of work: . It is known that as per the decision taken by the GST Council in its 22" meeting held on 06-10-2017, works contract services involving predominantly Earth Work (constituting more than 75% of the value of the works contract), supplied to Central Government, State Governments, Local Governmental Authority or Government Entity, shall be taxed at 5% In this context, a clear and a uniform understanding across all the Engineering Departments may be arrived on how to consider this aspect at the time of preparation of estimates and while admitting bills, so as to avoid inconsistencies in implementation and consequential objections from any corner, With the above points of agenda, the draft SoRs(containing materials pertaining to Water Resources Dept., Roads & Bridges Dept., Buildings Dept. & public health Dept.,) upto SoR 2008-09 were revised with basic rates(without tax elements) and placed before the BoCEs for discussion. * ‘The BoCEs have discussed the matter in detail and recommended as follows ‘The BoCEs recommendation for the issues raised by the Director of Works Accounts is as follows: Pertaining to point(a), the BoCEs recommend that 1. For approving Revised Estimates separately duly incorporating the work executed prior to 01-07-2017 and after 01-07-2017 with GST provision towards works contract as applicable. 2. For concluding Supplemental agreements with the arrived unit rates (excluding tax element) for the work executed on or after 01-07-2017 and to add GST towards works contract to the amount. 3. To allow payments duly adjusting the already made payments in the intermediate bills. Pertaining to point(b), the Chairman & Engineer-in-Chief(Admn.), Water Resources Dept. has informed to the BoCEs that a letter was