Workcontractor return

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This discussion clarifies how registered work contractors should declare income from government projects in their GST returns, specifically as taxable outward supplies. It also explains that while the government department deducts TDS, it is the deductor's responsibility to file the TDS return (GSTR-7), not the contractor's. The contractor should, however, ensure the deducted TDS is reflected in their GST records for claiming credit.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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15 September 2020 A registered regular scheme workcontractor service provide different government works.(repairs and roads etc)

dealer Rs:6 lacs some amount received from different works.
Question:
1.Works amount how to shown producure in gst returns.
2.tds return -7 filed compulsory.

Lekhraj sood

Lekhraj sood (Expert)
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16 September 2020 Please elaborate your query.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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16 September 2020 sir, a gst registered workcontracter works amount rs:6 lacs dealer bank account credit.this amount shown in gst monthly returns compulsory and purchases of iron and cement goods input credit claimed eligible.

Aashok Kumar Sharma

Aashok Kumar Sharma

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03 August 2025 Got it! Here’s a straightforward answer for your query on GST and TDS returns for a work contractor:

1. How to show work contract amount in GST returns?
The Rs. 6 lakhs received by the contractor from government works should be declared as taxable outward supplies under the relevant GST return (usually GSTR-1).

Since the contractor is on the regular scheme, the invoice value (including labor + material portion if applicable) should be reported.

Input tax credit (ITC) on materials like iron, cement, etc., can be claimed in GSTR-3B under eligible inputs, provided the goods/services are used for business.

The GST on works contract services is generally charged at the applicable rates (currently 18%, but may vary).

2. Is TDS return (Form 7) filing compulsory?
If the contractor is providing services to a government or government agency and TDS is deducted under GST provisions, then the deductor (government department) must file TDS return using Form GSTR-7.

The contractor (taxpayer) need not file GSTR-7; only the deductor files it.

However, the contractor should verify that the TDS deducted is reflected in their Form GSTR-2B or GSTR-3B.

Summary:
Query Answer
Showing Rs. 6 lakhs in GST Declare as outward supplies in GSTR-1 and pay GST accordingly; claim ITC on inputs.
Filing TDS return (Form 7) Filing of GSTR-7 is by the deductor (government); contractor should check TDS credit.

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