'A', a Main Contractor receives contract job from Govt for the construction of road for use by general public. He outsources his work to 'B', a sub contractor the complete job. 'B' inturns, subcontract the said work to another contractor 'C', which in turns does the contract job.
If 'A', charges GST @12% to the Government, then at what rate 'B' will Bill to 'A' and 'C' will bill to 'B'? Please clarify the same.
GST Rate Dispute: 12% Concessional Rate Applies to Subcontractors, Not Sub-Subcontractors in Road Projects In a discussion about the Goods and Services Tax (GST) on a government road construction project, the main contractor 'A' charges the government a 12% GST. The query involves subcontracting, where 'A' outsources to 'B,' who further subcontracts to 'C.' The question is about the applicable GST rates for 'B' and 'C.' Responses indicate that the 12% concessional rate applies to subcontractors like 'B' but not to sub-subcontractors like 'C.' However, some participants argue that the 12% rate should apply to all parties involved in the road construction, regardless of their position in the subcontracting chain. (AI Summary)
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