Sir I am an govt work contractor and made the work done for about Rs 9.00Lac.Sir in this contract work the material used is less than 25%.Sir I want to know that I am liable to pay the GST.If yes or no under which section.Thanks.
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Quick Summary
This discussion addresses whether a government work contractor is liable to pay GST on a contract worth approximately Rs 9 Lakhs, where material costs were less than 25%. The advice given is that GST is generally payable on works contracts for the government, especially if earthwork constitutes more than 75% of the contract, at the applicable rate. Liability exists unless the specific nature of the work is exempt from GST.
What is nature of work. if you have been done earth work more than 75% for a works contract to Government, also has to pay GST @ 5%. Hence has to pay GST as per applicable rate of GST on the said work.