Work Contract in case of Govt Contract

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wadhwanisam2@gmail.com

111 Points Joined July 2017

Dear Sir/Mam,
1. What is rate of GST in case a contract related to Maternity Ward or Other Govt Building.

2. If the Department doesn't have an gst no. like pwd department.. then how to bill.

3. Department deny to give GST then what to do.

4. If the contract is recd prior GST but work completed nad payment Recd in Post GST. Then whats its implications

5. In case of Maternity Ward and other building whether itc is available
on material and other things.

Pls resolve it on urgent basis.
Thanks in Advance
4.

Replies (7)

Preeti (Team_GSTSoln)

Team GST Experts

1926 Points Joined April 2011

Dear Sir

if the contract is received prior to 01.07 & work & payment is done afterwards then u have to pay gst on the whole biling amout.

there is no issue whether the dept is reg under gst or not .just left blank the gstn column in that case.

applicable rate is 18%

u will get the whole ITC of material & input services used therein the contract

Dhananjay saraf

Chartered Accountant

254 Points Joined February 2013

Rate of tax would be 12% for work contract service supplied to government authority in respect of maternity ward as per updated notification 11/2017.

The relevant part of notification is presented below-

vi) [Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, provided]12 to the Central Government, State Government, Union Territory, [a local authority, a Governmental Authority or a Government Entity]13 by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of

(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment