Applicable GST Rate

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This discussion seeks clarification on whether a subcontractor can benefit from the 5% GST rate for composite supply of works contracts, specifically when working for government entities. The query references Notification No. 39/2017 and a press release from the 25th GST Council meeting, suggesting the subcontractor's GST rate should align with the main contractor's.

mulla hussain basha

mulla hussain basha (Querist)

09 January 2021 As per the Notification no :39/2017 - Integrated Tax ( Rate) Dated 13 Oct 2017
“(vii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity. Applicable GST Rate 5% ,

My Query is Can a Sub Contractor use the Benefit of above Mentioned notification and Charge 5% GST on Taxable Supply to Main Contractor who are providing Services to the Govt

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 January 2021 GST rate to sub contractor should be the same as of prime contractor . As per SR.No-12 in press release of 25th meeting of GST council held at New Delhi on 18-01-2018, the rate of GST applicable to main contractor should be levied by sub-contractor.

mulla hussain basha

mulla hussain basha (Querist)

11 January 2021 Thank you very much Sir

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