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Tax Rate work contract on supply of services with material SAC code and rate

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Pardeep Sharma

51 Points Posted on 13 September 2023

Work contractor making foundation of plant and machinery under supply of services SAC under chapter 99 and charging GST @ 18%

While he is using Cement @ 28% Bricks, Sand, Concrete @ 5%

Please clarify could he charge the Tax @ 18% ?
under which Rule ?
What would be GST HSN / SAC?
Should he use separate SAC and HSN ? or He can use only SAC in this case ?
Can we take INPUT of foundation space area 6' x 8' for BOILER AND INSTALLATION OF FORGING HAMMER under plant and machinery?

Replies (3)

Quick Summary

This discussion addresses a work contractor's query regarding GST on foundation work for plant and machinery. The contractor uses materials with varying GST rates (cement at 28%, bricks/sand/concrete at 5%) but charges 18% GST under Works Contract Services. The core question is whether this 18% rate is correct, which rules apply, and the appropriate SAC/HSN codes. It also touches upon the eligibility of input tax credit (ITC) for related expenses.

Rajendra Prasad

Employee Private

1142 Points Posted on 13 September 2023

No he can't deviate and he has to submit invoice under Works Contract Services only and has to charge 18%. And also the ITC related to the same is not eligible to avail.