Gst on work contracts

[Ravinder Gupta]

Plz tell: what will be the rate of GST on work contracts? will it will be applicable on already ongoing works (started before GST)

[Himansu Sekhar]

In my view the ongoing projects will be wcs.

[Ganeshan Kalyani]

It is works contract service.

[KASTURI SETHI]

New GST rate will be applicable on works contract services from the date of implementation of GST.

[MUKUND THAKKAR]

if contract before GST kindly review the same, and make necessary changes in contract terns as per GST.

[Himansu Sekhar]

For wcs, it should be immovable property. Otherwise it is a normal service.

[MUKUND THAKKAR]

Agree Himansuji..

[Himansu Sekhar]

Thanks sir.

[KumaraswamyReddy Alluganti]

The works contracts are categorized as service and attracts 18% GST

works contract could be taxed on the value of goods and services with ITC under GST. It can be estimated at 18%.

 

[JAIPRAKASH RUIA]

I think transitional provisions for ongoing work contract are yet to be finalized.

[Ramesh komera]

Good Evening sir

please tell Audio,Sound System.Lighting, for rental services please tell HSN Code for This equipment

[NaveenTammina Tammina]

What about contracts that are awarded pre-gst? The tender rates didnt imply gst in it. How is it the government wants to collect more tax when the tender was called pre-gst? And the quote didnt imply any gst implication

[JAYACHANDRA KEERTHI]

Whether TDS is applicable for Works contract service in GST regime?

[JAYACHANDRA KEERTHI]

Distination based tax will be charged or tax will be received where we recevied from order ? (i.e tax will be charged for Billed party or Ship't party)

[Rudrayani Shedjale]

Previously Civil work contract services provided to Government Agency/Authority were exempted from serve tax. Now under GST is there such exemption?

also whether sych Government Agecy/Authority also have to pay GST as they are availing services?

please advise.

[KASTURI SETHI]

Pl. refer to your query dated 15.7.17.

Service provided to Govt. is not exempted from GST and Service provided by Govt. is exempted. For your information all services provided by Govt. are not exempted. In some services, liability has been shifted to Service Receiver. Each and every service has to be examined critically.

[Rajinder Choudhary]

Please guide me, i want to know about before gst sales tax 5.25% on contractor work and after Gst tax rate apply on contractor works.

[Rudrayani Shedjale]

@ Kasturi Sethi Sir, thanks for the information.

if we are doing any expenses like conveyance,printing & stationery, repairs & maintenance, labour charges etc.& if such expenses are Rs.5000/-a day, we have to pay GST on the same under RCM.

So my query is if such Govt.Agency has given a contract to a registered civil work contractor, for construction of their building, do they have to pay GST ?

Rate on works contract is reduced to 12%

AI Summary

GST on works contracts: treated as service; applicability, transitional treatment, place-of-supply and reverse-charge issues clarified.
Works contracts are treated as taxable services under GST from implementation, raising operational issues including applicable tax rate, treatment of pre-GST ongoing contracts and transitional provisions, allocation of tax incidence and need to review contract terms. Critical compliance matters include determination of place of supply and point of taxation, potential application of the reverse charge mechanism, input tax credit treatment, applicability to government contracts, and ancillary obligations such as classification and withholding-like mechanisms.