Contractors receipt

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This query is : Resolved

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This discussion clarifies GST implications for contractors. GST is charged on the total amount billed, not just the profit margin. Contractors should issue bills regularly, even if payment is received upon contract completion. The GST rate depends on whether it's a government or private contract, with 18% typically applying to private projects. Importantly, GST is also applicable on advance payments received.

sanjay

sanjay (Querist)

08 February 2021 Hello All
Pl advise. If the contractor receive amount 30lac 50k as his receipts from contract. On what amount GST will be charged. 50k or whole amount?
Pl note contract is for 30 lac with material.
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 February 2021 GST will be charged on total amount billed. ITC can be claimed on input material and service.

sanjay

sanjay (Querist)

09 February 2021 Thanks Sir
Whether returns will be filled quarterly. I will receive receipts after completion of contract..

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 February 2021 GST returns to be filed quarterly and paid monthly based on billing.

sanjay

sanjay (Querist)

09 February 2021 Sir
But bill will be issued to the party once when contract of building a property will finish. Or I have to bill on regular basis. Pl advise.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 February 2021 Issue bill on regular basis.

sanjay

sanjay (Querist)

09 February 2021 Sir
GST will be charged at what rate 18% or 12% or 5% . Pl confirm.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 February 2021 18% applicable for other than government contracts. 12% applicable for government contracts.

sanjay

sanjay (Querist)

10 February 2021 Sir. I will give the possession to owner of property after completion of floor. In this case GST no will be required. Pl confirm.