Rate of tax of a sub contractor to a main contractor

[Ravikumar Doddi]

My client is a sub contractor who got contract from main contract to execute work in a SEZ unit, what would the rate of tax under gst being sub contractor , recently I read some where rate of tax applicable to main contractor is applicable to sub contractor in the situation if a main contractor filed LUT without payment of IGST sez supplies are zero rated supplies shall he being a sub contractor raise a bill without payment of IGST or what amount of tax he has to levy.

AI Summary

Sub-contractor in SEZ must follow own GST obligations, independent of main contractor's LUT for zero-rated supplies. A sub-contractor in a Special Economic Zone (SEZ) queried about the applicable Goods and Services Tax (GST) rate, questioning if the main contractor's tax rate applies to them. The main contractor filed a Letter of Undertaking (LUT) for zero-rated supplies without IGST payment. One response clarified that both contractors are independent entities, and the sub-contractor must adhere to their GST obligations regardless of the main contractor's LUT. Another response agreed with this view but sought clarification on the specific rule or act governing this liability.