Definition of composite supply of works contract

We will place single PO for civil, plumbing, sanitary,painting jobs of our Guest House. Is it a composite supply of works contract? What sort of licenses we will ask vendor to submit. What will be GST rates due toulouse SAC defined supply and service items.

Please guide.

Replies (7)
Quick Summary
This discussion clarifies whether a single purchase order for civil, plumbing, sanitary, and painting jobs for a guest house constitutes a composite supply of works contract. It outlines the applicable GST rate (18% under SAC 995416), required vendor licenses, and documentation. The advice also covers input tax credit admissibility, noting it's generally not available for guest house renovations under Section 17(5)(c) and (d) of the GST Act, even if treated as revenue expenditure.

If work order scope is with material and services, it will be treated as Works Contract services and SAC will be 995416 and applicable GST rate will 18%.

As usual procedure, Contractor has to submit his PAN xerox, GST registration Certificate, ESI, PF registrations.  In Work order has to made Contractor responsible for all the Taxes and Duties.

At the time each running bill has to submit his PF, ESI challans for last month. You have to deduct applicable TDS under Income Tax Act. 1% if he is Individual or HUF else 2%.

For GST confirm his filing of returns Form GSTR 1 and GSTR 3B prior to making payment.

Many thanks.

In case, this Guest House is not directly related to factory and far away from plant,  whether there is admissibility of input tax credit of cgst,sgst. 

Guest House is undergoing a face-lift and not a newly to be built one.

Kindly guide.

No, Input tax credit is not available on such transaction.. Please refer Section 17(5)(c) and (d).

FarAway means whether it is in some other state?? if yes the ITC will be not available even if it is considered as revenue expenditure.

Sir

Same state but different city. We are treating this as Revenue spend.

yes in case you can claim ITC, but subject to restriction already replied above by me

Defination of composite works contract. In short term its an aggregation of many small contract.An epc contract .

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