Gst on works contract

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Sabita Sahoo (Querist)
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23 October 2017 Sir,I am a registered electrical works contractor and I have executed electrical work .Now while raising invoice ,I am not quite sure what will be the tax rate that I shall charge in the invoice where labour charge is also included.I think it will be 12% .Even though labour service is involved ,it fall under composite supply and principal supply is execution of works contract.what is ur view?

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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23 October 2017 Pl provide the nature of your work. Has it been done with regard to some building? Pl elaborate.

Sabita Sahoo

Sabita Sahoo (Querist)
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23 October 2017 Its a work of electrification of govt.office offered by ex.engineer,G.E.D,odisha.

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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23 October 2017 It is a supply of works contract of electrical installation. The rate of tax is 18%.

Sabita Sahoo

Sabita Sahoo (Querist)
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23 October 2017 Sir,as per latest notificationno. 20 of cgst act the gst rate for govt.works is 12% with eligibility of ITC.

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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23 October 2017 All supplies of works contract to govt are not exempted under this notification. Your WC is not eligible for exemption.

Sabita Sahoo

Sabita Sahoo (Querist)
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23 October 2017 Not clearly understood.As per notification no.24 DTD.21.9.2017 any supply to govt.division in respect of services supplied by way of construction,commission,installation,repair and renovation attracts get @12%.Thus how u derive gst @18% in respect if electrification work to govt.division.

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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25 October 2017 Pl let me know which para and which sentence of the notification conveys that meaning?

Sabita Sahoo

Sabita Sahoo (Querist)
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26 October 2017 Notification no.24 cgst 21.9.17

RAMESH KUMAR SINGLA

RAMESH KUMAR SINGLA (Expert)
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26 October 2017 I have gone through the notification no. 24/17. It is entirely on different subject.

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