GST RATE TO BE CHARGED BY SUB CONTRACTOR TO PRINCIPAL CONTRACTOR OTHER THAN WORKS CONTRACT

[RAJESH LANGALIA]

My query is with respect to the subject captioned above. One GST Registered Contractor is engaged in Maintenance, repairs and overhauling of vessels, ships, floating structures. It also manufactures the same. It also carries out manufacturing services in the nature of job work on the goods owned by others which is also related to ships and vessels only. Now, If this registered person entrusts the work (in case of maintenance and repairs) relating to one or two activity namely fabrication or say piping to another sub contractor,at what rate the sub contractor should charge GST to the principal contractor? In the second scenario of manufacturing of ships, vessels if it entrusts some of the work to a contractor (and not sub contractor as here they are principal manufacturer) say surface blasting,piping,color , what rate of gst should be charged by said contractor to the manufacturer? In the third scenario of manufacturing job work, if it entrusts either in full of some the work to another job worker, at what rate GST would be levied by the said job worker from the principal job worker ? I will be highly obliged if any one share his/her knowledge,opinion here. Thanks

AI Summary

Contractor Seeks Guidance on GST Rate for Subcontracted Services; 12% Rate Applicable for Job Work Services Under GST. A contractor engaged in maintenance, repairs, and manufacturing of ships and vessels seeks guidance on the appropriate GST rate for subcontracted services. The query involves three scenarios: subcontracted fabrication or piping work, contracted work in ship manufacturing, and job work services. The response clarifies that if the services provided are job work services on goods owned by others and the principal contractor is registered under GST, a 12% GST rate is applicable.