Composition Scheme

[Siddharaj Deora]

Are works contract covered under composition scheme? If not, whether any abatement is provided as in Service Tax? And what rate will apply for supply of goods and supply of services?

AI Summary

Works Contracts Not Eligible for GST Composition Scheme Under Section 10(2) of CGST Act, Say Forum Participants. A discussion on a forum addressed whether works contracts fall under the GST composition scheme. Four participants responded, agreeing that works contracts are not eligible for the composition scheme. They highlighted that Section 10(2) of the CGST Act outlines specific conditions under which a person can opt for the scheme, and works contracts do not meet these criteria. Additionally, the rate for such contracts has not been finalized, and no abatement similar to Service Tax is currently provided. The consensus was that works contracts are considered services and thus cannot opt for the composition scheme.