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COMPOSITION ON WORKS CONTRACT

27 June 2017

my query is whether works contract services under section 2(119) is covered under composition scheme u/s 10 of CGST and what rate if applicable

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7 Replies

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

No. Composition is applicable on for goods (except notified goods) and not applicable on services (except reataurant services)

Hema Gs (114 Points)
Replied 27 June 2017

as of now composition threshold is 75 lakhs at 1 , 2 and 5 percent on trader manufacturer and others respeCtively

Gagan Singla (564 Points)
Replied 27 June 2017

ok ok now i got it

Gagan Singla (564 Points)
Replied 27 June 2017

as per sec. 10(2)a only persons supplying services as per Sch. 2 para 6 clause b of cgst act i.e food supply etc. restaurant except alholaic liquour hor human consumption can adopt composition other service providers cant' opt for it. and as per sch. 2 para 6 clause a works contracts u/s 2(119) are to be considered as supply of services