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GST on contract given by Railways
I am an accountant and one of my client is a contractor who has got work contract from railways for construction of a building. However the works contract has applied gst @ 12% and the procurement of material for construction activity has gst btw 18 to 28%. how to bridge the gap and can he get ITC.
Replies (7)
Yes he can claim itc.
Thanks
The value addition by ur client would get the gap closed
Say ur client buys 100 rs. Of goods with gst of 18% and pay gst on 150 @ 12% therefore ur client pays 0 tax from his pocket
Further ur clients collects 18 rs of tax too from his client. So nothing would b paid from his pocket in real sense.
Say ur client buys 100 rs. Of goods with gst of 18% and pay gst on 150 @ 12% therefore ur client pays 0 tax from his pocket
Thanks a lot
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