TaxTMI 
TaxTMI 
The auditee is a sub-contractor who, during April 2022 to June 2022, provided works contract services to the main contractor in relation to road construction work awarded by the PWD department. What would be the applicable GST rate on the supply made by the sub-contractor to the main contractor?
GST rate on works contract services during Apri 2022 to June 2022
27 May 2026 
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Works contract services for public road construction were discussed as attracting concessional GST for subcontractors under the applicable notification entries.
Works contract services supplied by a sub-contractor to a main contractor for road construction awarded by a public works department were described as ordinarily attracting GST at 12% during April 2022 to June 2022, where the principal supply qualified as eligible works contract service for public road construction and the subcontract formed an integral part of that project. The discussion linked the concessional treatment to the notification entries covering road, bridge and other public infrastructure works, and noted that the subcontractor rate generally followed the rate applicable to the main contractor when the underlying contract satisfied the prescribed conditions. (AI Summary)
Works contract services supplied by a sub-contractor to a main contractor for road construction awarded by a public works department were described as ordinarily attracting GST at 12% during April 2022 to June 2022, where the principal supply qualified as eligible works contract service for public road construction and the subcontract formed an integral part of that project. The discussion linked the concessional treatment to the notification entries covering road, bridge and other public infrastructure works, and noted that the subcontractor rate generally followed the rate applicable to the main contractor when the underlying contract satisfied the prescribed conditions. (AI Summary)