Under Works contract

86 views 3 replies

Manjunatha Yadav

5 Points Joined May 2017

Under Works contract, if we do supply of goods & service together where Goods comes under 28 % tax slab & service comes under 18% tax slab-here whether we need to raise bill for 18% tax put together under GST Act –is this acceptable or else we need to raise the separate bill for Supply & service with actual tax rate.

Replies (3)

Sandeep Upadhyay

1518 Points Joined March 2017

Work contract rate is 18% with nil ITC

Harshad Shah

2 Points Joined July 2017

it is said that total input credit would be available for material, services and capital goods to supplier of services under works contract paying GST @ 18%....pl clarify

Sandeep Upadhyay

1518 Points Joined March 2017

Section 16(9) provides that Input tax credit shall not be available for the following in relation to works contract: (c) goods and/or services acquired by the principal in the execution of works contract when such contract results in construction of immovable property, other than plant and machinery; (d) goods acquired by a principal, the property in which is not transferred (whether as goods or in some other form) to any other person, which are used in the construction of immovable property, other than plant and machinery;