Whether a contract awarded by a Govt. organization to a contractor (a Pvt. Ltd. Co.) should be treated as a ‘Works Contract’ as defined in Sec.2(119) of CGST Act, 2017 and concessional rate of GST (5% or 12%) should be applicable on the same…?

Whether a contract awarded by a Govt. organization to a contractor (a Pvt. Ltd. Co.) should be treated as a ‘Works Contract’ as defined in Sec.2(119) of CGST Act, 2017 and concessional rate of GST (5% or 12%) should be applicable on the same…? https://www.taxtmi.com/article/detailed?id=10165 Classification as a works contract depends on whether the execution involves a transfer of property in goods. Consumable inputs used and consumed by the contractor that are not conveyed to the contractee do not constitute such transfer; therefore where materials like oil, HSD, blasting material and spare parts are consumed and ownership is not passed, the contract does not qualify as a works contract and concessional government works rates are not available. en-us Tue, 04 Jan 2022 07:24:47 +0530 Tue, 04 Jan 2022 07:24:47 +0530 TaxTMI RSS Generator Whether a contract awarded by a Govt. organization to a contractor (a Pvt. Ltd. Co.) should be treated as a ‘Works Contract’ as defined in Sec.2(119) of CGST Act, 2017 and concessional rate of GST (5% or 12%) should be applicable on the same…? https://www.taxtmi.com/article/detailed?id=10165 Classification as a works contract depends on whether the execution involves a transfer of property in goods. Consumable inputs used and consumed by the contractor that are not conveyed to the contractee do not constitute such transfer; therefore where materials like oil, HSD, blasting material and spare parts are consumed and ownership is not passed, the contract does not qualify as a works contract and concessional government works rates are not available. Articles Goods and Services Tax - GST Tue, 04 Jan 2022 07:24:47 +0530 https://www.taxtmi.com/article/detailed?id=10165