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GST Tax for Electrical Contractors.

vinay joshi (77 Points)

12 June 2018  
Hi all,

Please tell me what is the rate of tax for electrical contractor who Supply Goods & Services to Govt (Govt Works). How to calculate the tax amount. And is ITC available on Purchases?

 8 Replies

R. B. Yadav (CMA, LLB) (Tax Consultant) (522 Points)
Replied 12 June 2018

Please check whether you works fall under the definition of works contracts or not.  If yes, rate of GST is 18% for works contracts.  Please note that there is some relaxation in GST rate for works contracts done under governemnt project. so please check whether your project eligible for relaxation or not.

If it doesn't fall under the definition of works contracts, it will be treated as a mixed supply.  if you do not raise the bill seperately, supply which attracts higher rate will be applied on complete transaction.

 

 

1 Like

Pankaj Rawat (GST Practitioner) (51638 Points)
Replied 12 June 2018

RATE OF WORK CONTRACT TO GOVT. IS 12%, YES U CAN AVAIL ITC

2 Like

g mahesh Mundra (Business and tax consultant)   (3280 Points)
Replied 12 June 2018

sir here is one question if I purchase the material for 18% and the same is supplied under work contract to government then the GST rate is 18% or 12%

Vinod Babu (24161 Points)
Replied 12 June 2018

Purchase is 18%. But for government work contract 12% is gst applicable for their services including the materials. The difference of output tax and input tax shall be payable as gst amount.

g mahesh Mundra (Business and tax consultant)   (3280 Points)
Replied 12 June 2018

means for the same material I have more input after reducing lesser rate output

Pankaj Rawat (GST Practitioner) (51638 Points)
Replied 12 June 2018

No problem as your purchases is @ 18℅ & Sold to Govt at 12% , the only problem is Cannot file refund for excess itc in books

Vinod Babu (24161 Points)
Replied 12 June 2018

Aggred

vinay joshi (77 Points)
Replied 30 June 2018

Thanks to all

What to do for works done in pre GST period say in Jan-17 but we got the check (amount) in Aug-17 GST Period. Is we have to pay tax @ 18% or 12% in gst or how to show it???

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