Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

GST Rate for Earth Work - ITC can adjust for it

237 views

Save Share

Libissa

Accountant

337 Points Posted on 20 January 2022

I have taken Earth Work in Department they ask to pay GST 5% for that work and GST TDS 2% Deducted from Department balance 3% to be paid can i paid the amount through ITC Excess having from purchase bill from cement and iron rod bill got for other department works

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicable to earth work. The GST rate is 5% if earth work constitutes at least 75% of the project. For work exceeding £2.5 lakh, a 2% rate applies, with 2% TDS deducted by the department. Importantly, you can utilise excess Input Tax Credit (ITC) from previous purchases, such as cement and iron rods, to pay the remaining GST liability.