works contract under gst

[MOHAN KUMAR]

Hi all, seasons greetings, new here and new GST registered. i am a interior decorator and designer and have registered my firm under gst works contract. was trying to understand works contract under gst, came to know its treated as service and not goods and sales. actually in our nature of work we both service and sell goods to construct something say office interior. can anybody guide on how actually things work here.

regards..

[Himansu Sekhar]

Pay the tax, take the input credit on the materials.

[KASTURI SETHI]

Your activity is related to immovable property. Hence under works contract. Agree with Sh.Himansu Sekhar Ji.

[V Joseph]

Dear Sirs,

I want to export the IGST (18%) paid import stocks to Europe and would like to know, shall I get the refund of IGST (18%) which I paid against import? What else benefit I can avail in lieu of this export?

AI Summary

Works contract classification treated as service under GST, requiring tax on supply and allowing input tax credit on materials. Works contracts are treated as service under GST even when both services and goods (materials) are supplied; taxpayers are advised to pay the applicable tax on the works contract and avail input tax credit on materials. The activity's linkage to immovable property underpins its classification as a works contract. A further query about refund of IGST paid on imported inputs for export is raised but not resolved.