For turnkey contracts under GOI schemes there are two types of works. Namely a) Supply of equipment and b) Erection. I want to know if there would be two GST slabs in the same contract.
The above is case 1. In certain states the above two factors are quoted and awarded together. How can one guess what to quote for future tenders and what will happen to the ongoing one. The conditions of contracts does not permit any compensation for change in taxes.
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GST for EPC contracts
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I have the same query becz some tenders does not allow for any statutory variation. We are quoting tenders by loading GST impact which is increasing our cost
If it is a composite supply, it needs to be classified as per nature of principal supply as per Section 8(a) of the CGST Bill.
In some of the work contracts supply of goods is principal, i.e. composite supply of airconditioner with its installation. It shall be treated as supply of goods. There may be ceratin supplies where goods are not important, it is the installation/construction is paramount and principal- i.e. construction of a building.
I am sure in due course proper classification guidelines shall be issued.
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