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COMPOSITE SUPPLY VS WORKS CONTRACT

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....OMPOSITE SUPPLY VS WORKS CONTRACT<br> Query (Issue) Started By: - NAMAN DOKANIA Dated:- 4-9-2022 Last Reply Date:- 11-9-2022 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Sir, A Private Limited Company entered into a contract with Railway to under take an activity amounting to Rs. (say) 20 Crores which content the following: 1. Supply of ballast (Stone)and spreading the same under the....

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.... tracks /- Rs. 8 Crores 2. Transportation of Ballast from Factory to railway track point : Rs. 5 crores 3. Linking of railway tracks by tracks being provided by railways :- 7 crores Will the service be a composite supply taxable @5% being ballast being a principal supply or a works contract service @18%. Please state the reasoning as well. Any further info is most welcomed sire/madame. P.s.....

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.... Tax rate on ballast is 5% Reply By KASTURI SETHI: The Reply: No BENEFIT of composite supply is available in this context. Each service is to be taxed separately and specifically. REASONING : Go through the extract of Board&#39;s Flyer No.4 dated 5.8.19 Relevant extract for your convenience &quot;A works contracts and restaurant services are classic examples of composite supplies, however th....

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....e GST Act identifies both as supply of services and chargeable to specific rate of tax mentioned against each of such services (works contract or restaurant).&quot; This is relevant even now, especially, concessional rate has been withdrawn w.e.f. 18.7.22. Reply By Shilpi Jain: The Reply: 1 & 2 could be a composite supply though terms of the contract would be relevant to decide. 3 could be a....

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.... job work and liable @ 12%.<br> Discussion Forum - Knowledge Sharing ....