GST on Repair of Govt Building.

A person doing repair work for PWD (Public Works Department) and SADA (Local Authority) is considered a contractor. TDS (Tax Deducted at Source) is applicable under both GST (Goods and Services Tax) and IT (Income Tax). Assuming the person is an individual (not a company): - GST: 12% (standard rate for services) - IT: 1% to 5% (depending on the income slab) However, since both PWD and SADA are government authorities, the TDS rates might vary. For government contracts, the TDS rate is typically 2% to 5% under IT. To determine the applicable tax rate, consider the following: 1. GST: 12% (standard rate for services) 2. IT: - 2% to 5% (government contracts) - 1% to 5% (individual income tax slab) Consult a tax professional or chartered accountant to ensure accurate calculations and compliance with all regulations. Please note that tax rates are subject to change, and individual circumstances may affect the applicable tax rates.

Tax Rate Summary for This Case:

1. GST Rate:

   • 12% for works contract services provided to PWD/SADA.
   • 18% for general repair and maintenance services.

2. TDS Under GST: 2% (1% CGST + 1% SGST) or 2% IGST.

3. TDS Under Income Tax (194C):

   • 1% for individuals or HUF.
   • 2% for companies or other entities.
   • The supplier can then claim the GST TDS deducted in their GST returns and adjust the income tax TDS in their ITR filing.

Eligibility for Input Tax Credit (ITC):

You are eligible to avail Input Tax Credit (ITC) provided the following conditions are met:

• GST Paid: The contractor should charge GST on the invoices for the services provided. ITC is available on the GST paid to the contractor.

• Use in Furtherance of Business: The works should be used for business purposes or as part of business assets (as repairs of government buildings, this might not directly relate to your personal business use unless specified otherwise).

• Taxable Supply: The services must be classified as taxable under the GST law, and you should be a registered person under GST.

• 12% GST Rate: The rate of 12% applies to works contracts for construction, repair, or maintenance of government buildings, as per GST Act under Section 2(119). If the services provided fall under this category, and you satisfy the conditions mentioned above, you should be eligible to claim ITC on the GST paid.

2. HSN Code for Special Repair Works (Government Buildings):

The appropriate HSN Code for these types of services is likely to fall under Chapter 9954, which covers construction services. For specific repair work like you mentioned:

• HSN Code 9954 – This is applicable for construction services of buildings and civil engineering works.

  Breakdown:

  • 995421: General construction services of buildings.
  • 995422: Repair and maintenance services for residential and non-residential buildings.

As this work involves repair of government buildings, HSN 995422 should be applicable.

The repairs and maintenance services provided to CPWD and SADA will be covered under  GST rate @ 18% from 18/07/2022, with Input Credit.

• Calculate the missed liability for FY 2022-23 and FY 2023-24.
• Pay via DRC-03, if you wish to settle voluntarily before any notice.
• File GSTR-9 to disclose the missed liabilities officially and pay via DRC-03.

Could you please mention the section.

A very enlightening discussion. Learned a lot! URL

GST TDS is generally 2% in total—1% CGST plus 1% SGST for an intra-State supply, or 2% IGST for an inter-State supply—where the contract value exceeds ₹2.5 lakh (excluding GST). This applies only if the PWD/SADA payer is a notified GST TDS deductor and the supply is taxable. Repair work is commonly treated as a works contract when it involves immovable property, but the contract scope matters.

Income-tax TDS is separate: for a resident contractor, section 194C generally requires 1% where the payee is an individual/HUF, or 2% for other payees, subject to the applicable threshold and other conditions. The fact that both authorities deducted does not itself mean tax is due twice; each payer’s deduction should appear against the same PAN in the relevant GST/Income-tax records. Check the work order, payee status, contract value, place of supply and actual TDS entries to confirm the rates.

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