TaxTMI 
TaxTMI 
Plz tell: what will be the rate of GST on work contracts? will it will be applicable on already ongoing works (started before GST)
Gst on work contracts
01 Jun 2017 
19 Replies 
7880 Views Asked by
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. (AI Summary)
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. (AI Summary)