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

Work contract classification as service requires GST registration and bars composition scheme, raising input tax credit questions.
Classification of turnkey installation contracts as work contracts requires GST registration as a normal taxable person; work contracts combining materials and labour are treated as a supply of services under Schedule II (entry 6(a)) and S.2(119), and cannot access the composition scheme. Operational issues about tax rates for private versus government contracts and eligibility for input tax credit on interstate material purchases are raised but not decided.