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Building Contract -GST

05 February 2019

My friend gave a building contract work to Mr. X. Mr.X has completed the work and submitted the bill without mentioned GST separately. My friend settled the contractor bill after deducted the TDS.

Mr.X is a GST registered dealer

My friend asked me, is there any GST liability will come regarding this transaction.

please advice.

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3 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 05 February 2019

You just check if the bill is inclusive of gst or not

contractor work is covered under GST (18%)

Afreen Fatima (Aricle Assisstant (Final Year)) (129 Points)
Replied 05 February 2019

If the contractor is registered he must issue tax invoice with GST amount (Rule 46). Liablity to pay GST is on service provider i.e. contractor.

However, GST relating to works contract and construction service can not be claimed as ITC by the recipient of service as per Sec. 17(5) of CGST Act 2017.

Recipient of the service will show the GST amount on above service as ineligible ITC as per section 17(5) in table 4 of GSTR 3B.