GST RATE & ITC

[SUSHEELA CHOUDHARY]

SIR ONE OF MY CLIENT WHO IS WORK CONTRACTOR RECEIVED CONTRACT FOR CONSTRUCTION OF GOVERNMENT SCHOOL HOW MUCH GST IS TO BE CHARGED ON ABOVE SERVICE AND WHETHER IS WE ELIGIBLE FOR ITC ON INPUT SERVICE ON MATERIAL WHICH WE WILL BUY FOR CONSTRUCTION OF GOVERNMENT SCHOOL. PLEASE REPLY BE ON THE ABOVE ISSUE.

AI Summary

GST Exemption on Pure Labor Construction Services for Government Schools; No ITC on Exempt Services. A participant in a discussion forum inquired about the applicable GST rate and eligibility for Input Tax Credit (ITC) for a client who is a works contractor involved in constructing a government school. The response clarified that if the contract involves only pure labor for construction services provided to the government, it is exempt from GST. However, if the service is not exempt, it is taxable, and in the case of exemption, no ITC is available on input services or materials purchased for the construction.