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Gst on contractors service.

Jyoti Narang (Kkk) (1204 Points)

10 July 2020

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

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Vijayprakash P (1313 Points)
Replied 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%.

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Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 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