road construction

In the case of constructions or contracts going on for a long period, there are bound to be circumstances wherein the contract began in the previous regime and has extended into the GST regime. The GST law provides that goods and/or services supplied on or after 1st of July – i.e. the launch date of GST, in pursuance of a contract entered into prior to 1st of July, shall be taxed as per GST norms. However, it also stipulates that in case the full duty or tax payable for such supplies has already been paid under the earlier law, then no tax shall be payable under GST. This is, even if part consideration for the supply is made on or after 1st July