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Gst procedure on work contract service provide to pwd

Others 430 views 4 replies

Hello Friends

If Work contract service provide to Public Work Department than it is ambit of GST if yes that what rate will apply and how PDW do the payment of this service. Charge which deducte by PWD.

Replies (4)

When works contract done by private party to PWD dept[being Govt dept] whereby the works is say construction of new building for use other than for business or commerce tax rate is 12%

Pl confirm if material portion in contract is less than 25%/75%??

what if 25% or 75%

As per Schedule II  [See section 7] ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES

5. Supply of services The following shall be treated as supply of services,

Construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.

 

What about if Completion certificate has been issued by competent authority than it will be out of  GST preview.

works contract’ is limited to contracts to do with immovable property & as per schedule II it's cover under services

If provided to Govt rate is 12% else it's 18%


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