Work contract reverse charge
This query is : Resolved
CA DEWANGAN DEEPAK
(Querist)
30 May 2017
Hello freinds
i am confused in the defination of Work contract let me know what is covered or not in work contract defination. actually i work in a company who give contract to a marketing company & marketing company provide marketing material like banner & posters & also provide marketing service whether this type of service covered in the defination of work contract and reverse charge will apply or only work related to contruction is covered in work contract defination.
i am confused in the defination of Work contract let me know what is covered or not in work contract defination. actually i work in a company who give contract to a marketing company & marketing company provide marketing material like banner & posters & also provide marketing service whether this type of service covered in the defination of work contract and reverse charge will apply or only work related to contruction is covered in work contract defination.
CA DEWANGAN DEEPAK
(Querist)
30 May 2017
Friends please reply fast...........thanks in advance
Nischit Sanghavi
(Expert)
02 June 2017
in your case RCM will not apply
03 August 2025
Hey! Great question — let's clear up the confusion around **work contract** and **reverse charge** under GST.
---
### What is a Work Contract under GST?
* **Work Contract** means a contract for building, construction, fabrication, completion, erection, installation, fitting out, repair, maintenance, renovation, alteration or commissioning of any immovable property.
* It **involves both goods and services** where transfer of property in goods is involved in the execution of the contract.
**Key point:** It’s mostly related to **construction or any immovable property work** (building, civil work, repair, etc.)
---
### Does marketing services like banners/posters fall under Work Contract?
* No, providing **marketing materials like banners, posters, and marketing services** **does NOT fall under the definition of work contract**.
* These are generally treated as **supply of goods (banners/posters)** and **services (marketing services)** separately.
* So, **reverse charge on work contract services will not apply** for marketing services or supply of banners/posters.
---
### Reverse Charge Applicability
* Reverse charge on work contract services **only applies if the recipient is a specified person like a government department or local authority**, or if notified under GST rules.
* For general business-to-business contracts for work contract services, reverse charge usually **does NOT apply**, except in notified cases.
---
### Summary:
| Service Type | Work Contract? | Reverse Charge Applicable? |
| ----------------------------------------- | -------------- | ------------------------------------------ |
| Construction/repair of immovable property | Yes | Yes, if recipient notified under GST rules |
| Marketing services (banner/posters etc.) | No | No |
---
If you want, I can help you with the exact legal GST references or notifications for reverse charge on work contracts. Just let me know!
---
### What is a Work Contract under GST?
* **Work Contract** means a contract for building, construction, fabrication, completion, erection, installation, fitting out, repair, maintenance, renovation, alteration or commissioning of any immovable property.
* It **involves both goods and services** where transfer of property in goods is involved in the execution of the contract.
**Key point:** It’s mostly related to **construction or any immovable property work** (building, civil work, repair, etc.)
---
### Does marketing services like banners/posters fall under Work Contract?
* No, providing **marketing materials like banners, posters, and marketing services** **does NOT fall under the definition of work contract**.
* These are generally treated as **supply of goods (banners/posters)** and **services (marketing services)** separately.
* So, **reverse charge on work contract services will not apply** for marketing services or supply of banners/posters.
---
### Reverse Charge Applicability
* Reverse charge on work contract services **only applies if the recipient is a specified person like a government department or local authority**, or if notified under GST rules.
* For general business-to-business contracts for work contract services, reverse charge usually **does NOT apply**, except in notified cases.
---
### Summary:
| Service Type | Work Contract? | Reverse Charge Applicable? |
| ----------------------------------------- | -------------- | ------------------------------------------ |
| Construction/repair of immovable property | Yes | Yes, if recipient notified under GST rules |
| Marketing services (banner/posters etc.) | No | No |
---
If you want, I can help you with the exact legal GST references or notifications for reverse charge on work contracts. Just let me know!
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