TaxTMI 
TaxTMI 
Inclusion of Free issue material in Works contract value
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....nclusion of Free issue material in Works contract value<br> Query (Issue) Started By: - JSW CEMENT LIMITED Dated:- 10-10-2017 Last Reply Date:- 11-10-2017 Goods and Services Tax - GST<br>Got 7 Replies<br>GST<br>Dear All Experts, Kindly throw your valuable opinion on whether value of Free cost material should be included in works contract value for the purpose of charging GST Reply By Himansu Sek....
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....har: The Reply: Please refer to Sec 15(20(b) of CGST act,2017. The value of free cost materials is includible in the WCS. Reply By KASTURI SETHI: The Reply: I agree with the view of Sh.Himansu Sekhar Ji. Section 15(2) (b) of CGST Act. Reply By Ganeshan Kalyani: The Reply: Yes , value of material issued free of cost to the contractor to incorporate it into the construction work to be added to ....
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....consideration. Reply By Ganeshan Kalyani: The Reply: In service tax the Rule stated to include value of free material issued free of cost to the contractor to incorporate it into construction work. But the Act was not clear to state that it should form part of consideration. Hence there was so many issue. So many case in favour of assesses were passed. And equal number of cases were passed agai....
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....nst the assesses. Reply By Ganeshan Kalyani: The Reply: In GST it is clearly given in the Act that the value of free issue material to be included in consideration to offer to tax. Reply By JSW CEMENT LIMITED: The Reply: Thanks for your opinion. I was also of the same opinion and wanted to have others opinion also. Thanks once again. Reply By vishal sharma: The Reply: Dear All it will Depe....
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....nd upon the wording of the contract entered between the contractor and the contractee. If the wording says that every thing will be supplied by Contractor if that be the case then it will be added and taxable as supplies. But if the wording in contract is clear as to what the contractee will supply and what contractor will supply then the material; supplied by Contractee FOC for executing the cont....
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....ract will not be held part of consideration and gst will not be applicable.<br> Discussion Forum - Knowledge Sharing ....