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Gst on contractors service.

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Jyoti Narang

Kkk

885 Points Posted on 10 July 2020

can anyone explain completely the gst concept on work contractors.its urgent

Replies (4)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications for work contractors. It explains that most work contracts are taxed at either 12% or 18% GST. Specifically, contracts for private parties are typically taxed at 18%, while those for government purposes are taxed at 12%. The definition of a work contract under GST involves services related to immovable property. Importantly, contractors can claim Input Tax Credit (ITC) on these services.

Vijayprakash P

776 Points Posted on 10 July 2020

Most of the services under work contracts are taxed either 12% or 18%.If it's a work contract which the service provider is undertaking (he will be considered as supplier) for a private party (recipient) gst rate :18% gst for work contract on govt. purpose 12%.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 11 July 2020

As per the Defination of work contract u/s 2(119 ) means a contract for building, construction, fabrication, completion,erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration,commissioning, of ANY IMMOVABLE PROPERTY, wherein transfer of property in goods is involved in the execution of such contract.

So in GST , the work contract is treated as work contract only when it is provided in relation to immovable property