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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....GST, different Departments have 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 servi....

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....supplied on or after 1st July 2017 and invoice/bill raised on or after 1st July 2017 WBGST and CGST rates will be applicable. iii. With regard to works contracts (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.....

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....t is clarified that under no circumstances will there be a revision of any contractual values in the contract due to impact of change in tax rate(s), if any, from VAT/Service Tax to GST. 4. Post-GST contracts: i. With regard to post-GST contracts or ongoing projects where estimates have been approved 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 o....