Revised guidelines relating to works contract under GST

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....ns have been received from the contractors claiming additional amount towards GST in respect of the works put to tender prior to 01.07.2017 but executed either partly or wholly after 01.07 2017. On careful consideration of the representation of the contractors visa-vis existing guidelines issued in the matter, Government have been pleased to issue following revised guidelines in supersession of the guidelines issued vide Finance Department letter dated 07.12.2017: 1. The Goods and Services Tax (GST) has come into force w.e.f. 1^st July, 2017 by subsuming various indirect taxes such as Excise Duty, VAT, CST, Entry Tax, Service Tax etc. Works contract is treated as composite supply of service under GST and are taxable Q 18 0 0, 12% or 5....

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....SoR-2014, the tax-exclusive basic value of that goods or service shall be determined by removing the embedded tax incidences of VAT, Entry Tax, Excise Duty, Service Tax, etc. from the estimated Price/Quoted Price.) (iii)  The revised estimated work value for the Balance Work shall then be enhanced or reduced in the same proportion as that of the tender premium/discount. (iv)  Finally, the applicable GST rate (5%, 12% or 18% as the case may be) is to be added on the revised estimated work value for the Balance Work to arrive at the GST-inclusive work value for the Balance Work. (v)  A model format for calculation of the GST-inclusive work value for the Balance Work is attached as Annexure. The compet....

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....ent this revised guidelines . By order of the Governor Principal Secretary to Government   ANNEXURE Determination of GST-lnclusive Work value for Balance Work, for which the agreement executed on the basis of SoR-2014 1. As per Original Agreement  (i)  Name of the works___________  (ii)   Agreement No./Work Order with date _________ (iii)  Name of the Contractor/Firm executing the works__________________ (iv)  Total value of work: Rs. (v)  Value of work completed upto 30/06/2017 : Rs. (vi)  Value of balance value of work executed after 30/06/2017 (iv-v):  Rs. 2.  Determination of value for balance work Sl....