gst for small work contractors

[vikram bindra]

hi i am a small businessman with annual turnover abt 20 lacs , iam into installation of fountains , which includes complete fitting on turnkey basis, it includes providing of material and labour watever required for completion , what are my tax laibilities, my materials include electrical panel , pumps , sanitary fiitings lights, electrical and so on

i work for local bodies too i mean municipalities , besides private small contracts

these contracts may be in different states

AI Summary

Contractor Informed: Must Register Under GST Act, No Composition Scheme; 18% GST Private, 12% Govt Works Contract A small business contractor involved in fountain installation with an annual turnover of approximately 20 lakhs inquires about GST liabilities. The contractor provides materials and labor for municipalities and private contracts across different states. A respondent advises that such work is classified as a 'works contract' and requires registration under the GST Act, excluding eligibility for the composition scheme. The contractor confirms understanding and asks about GST rates-18% for private and 12% for government contracts-and queries about availing input credit for interstate purchases, particularly when materials are used in contracts in other states.