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GST ON WORK CONTRACT

Nabajit Barman (23 Points)

22 June 2017

what will be the GST rate for work contract means mixture of golds and service in single civil work

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Raghuveer (Executive) (167 Points)
Replied 22 June 2017

Under GST, definition of works contract is restricted only to goods and services used in respect of an immovable property towards construction, renovation, alteration, modification etc.

All other supplies involving two or more goods or services or both shall either be treated as 'Composite Supplies' or 'Mixed Supplies'.

'Composite Supplies' shall be taxed at the rate applicable to the principal supply i.e. either the commodity or the service whichever forms the predominant objective of the supply.

'Mixed Supplies' shall be taxed at the highest of the rates applicable to the goods and/or services which are supplied together.

Nabajit Barman (23 Points)
Replied 22 June 2017

say in case of construction of govt office building where the contractor is doing the supply of material as well as construction also .in that case what rate of GST i have to deduct