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Gst on works contract

Saisumanth S (student CA FInal) (64 Points)

24 June 2017

Dear friends

Can anybody explain me difference between these two services as given by GST council, since i got confused to decide GST rates, since both will give same meaning

1. Construction of a complex, building, civil structure or a part thereof, intended for sale to a buyer, wholly or partly. [The value of land is included in the amount charged from the service recipient] ((12% With Full ITC but no refund of overflow of ITC))

2. Composite supply of Works contract as defined in clause 119 of section 2 of CGST Act - ((18% With Full ITC))

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160688 Points)
Replied 24 June 2017

1. Real estate is "property consisting of land and the buildings on it, along with its natural resources, immovable property of this nature; an item of real property, (more generally) buildings or housing in general.........taxed at 12%

2. A works contract is a mixture of service and transfer of goods. Examples of works contract are construction of a new roads,bridges, erection, installation of plant and machinery. etc..... at 18%

1 Like

Saisumanth S (student CA FInal) (64 Points)
Replied 24 June 2017

Thank you so much for your valuable reply sir

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160688 Points)
Replied 25 June 2017

Most welcome

hitesh (proprietor) (67 Points)
Replied 29 June 2017

Sir what is the GST Tax rate for Interior designers who come under works contract in current VAT Regime.

hitesh (proprietor) (67 Points)
Replied 29 June 2017

Sir what is the GST Tax rate for Interior designers who come under works contract in current VAT Regime.

gorani dhaval chhotalal (Practice) (208 Points)
Replied 04 July 2017

Dear Sir

Only works contract pertaining to immoveable property as covered u/s 2(119) are taxable at 18%(Eg: Construction Contract).

For any works contract pertaing to moveable property which are not covered u/s 2(119) are taxable based on Composite Supply i.e., rate of Principal Supply. (Eg: Interiors works of flat, taxable at 28% assuming plywood as a princial supply used in the works contract)