Clarification/ Guidelines regarding issues pertaining to Contracts awarded by the State Government Departments/ local authorities/ statutory bodies/ PSUs under Government of West Bengal due to the introduction of GST i.e. 1st July 2017

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....ve sought clarifications on modalities of treatment of pending bills of different contracts in the pre-GST regime. Departments have also sought clarifications with regard to projects which have been approved prior/post to the introduction of GST on 1st July 2017. 2. Now, the following guidelines have to be followed by the Departments/ local authorities/ statutory bodies/ PSUs under Government of West Bengal with respect to treatment of work contracts and supplies in the pre-GST and post-GST regime for: * Pre-GST contracts for supply of goods; * Pre-GST contracts for supply services; * Pre-GST works contracts; * Post-GST contracts for supply of goods or services or both. 3. Pre-GST contracts: i. With regard to supply of only good....

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....(eg: roads, buildings, etc.) where the supply is of both goods and services: Sl. Situation Mode of Treatment a. Works Contracts executed and completed before 1st July 2017 and invoice/bill also raised before 1st July 2017, but payment is made on or after 1st July 2017 * VAT is applicable. * Service Tax is applicable. b. Works Contracts executed and completed before 1st July 2017 and invoice/bill raised on or after 1st July 2017 by the contractor within 30 days after completing such contract * VAT is applicable. * Service Tax is not applicable. c. Works Contracts executed and completed before 1st July 2017 and invoice/bill raised on or after 1st July 2017 by the contractor after expiry of 30 days after completing such contra....

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.... before 1st July 2017 i.e. those work orders given/to be given for supply of goods or services or both (works contracts), GST rates will be applicable. In other words, the supplier of goods/services/both has to pay WBGST and CGST on all taxable goods/services. ii. Under the West Bengal Value Added Tax Act 2003, "works contract" covered both moveable and immoveable property, whereas, "works contract" under GST is restricted only to immovable property. In GST, works involving supply of taxable goods along with labour to any moveable property [e.g. servicing of motor vehicle with motor parts, AMC contract for computers or AC machines or generator, repair of furniture, etc) has been referred to as "composite supply" as the supply of goods a....