Gst - works contract - itc

CA CHETAN GUPTA (CA) (588 Points)

27 September 2017  

Works Contract Service ( Contractor) - To Govt., Local Municipal Corporation (Roads, Sewers etc.)

Is Input Tax Credit Available on Goods purchased and used like Cement, Sand etc.???

How to Calculate GST on the Contract Value?

Contract Amount Rs. 1 Lakh

GST @ 12% would be 1 Lakh x 12 % = 12000/- { TAX EXCLUSIVE }

or

GST @ 12% would be 1 Lakh x 12 / 112 = 10714/- { TAX INCLUSIVE }

(AMOUNT RECEIVABLE from GOVT. i.e. CONTRACT VALUE is Rs. 1 Lakhs Only. No Extra Amount in the Name of TAX can be recovered.)

 

Kindly Quote Any Relevant Notification or Section.

Thanks.