Workcontractor return

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This query is : Resolved

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This discussion clarifies GST implications for a contractor providing services to government works. It addresses the eligibility of input tax credit (ITC) for iron and cement purchases, provided GST was charged on the works. It also explains how to treat payments received for government works (12% GST) and other dealer works (18% GST) in monthly GST returns.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

16 September 2020 A gst registered regular scheme workcontract service provide to different govt works.dealer works amounts received through on bank account credits and purchases of iron and cement from registered dealers.
Question:
1.purchases of iron and cement input credit claimed eligible.
2.works amount received through on bank mode receipts shown in gst monthly returns and treatment in gst act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2020 1.Purchases of iron and cement input credit claimed eligible if GST charged on such works.
2 unless exempted GST applicable on such works and ITC can be claimed on all inputs.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

16 September 2020 sir,dealer different works payment received through on bank account sales turnover treatment and rate of tax applicable

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

16 September 2020 Government works 12% GST applicable and for others 18% GST applicable.

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