SUB CONTRACTOR OF GOVERNMENT WORK

[NAMAN DOKANIA]

"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.

AI Summary

Concessional GST rate for road construction: applicability across contracting tiers vs recipient specific limitation.
The document addresses whether the concessional 12% GST for road construction applies to contractors at all tiers. One position limits the concession to sub contractors who supply services to the government on behalf of the main contractor and excludes sub sub contractors. The competing position treats the rate entry as recipient neutral: the rate applies based on the nature of the work (road construction as a works contract) regardless of whether the supplier is a contractor, sub contractor, or further subcontracted party, raising practical billing and classification questions.