Works contract ITC

basant (manager finance) (105 Points)

04 July 2021  

We are registered dealer in Gujarat. We are supposed to get works contract under sub-contract for supply+services from a company registered in Tamilnadu who have got order from Government Public Health Engineering department. The place of services (supply+service) is also at Tamilnadu. 

Further, if we let out service order to labour contractor based at Tamilnadu for doing job of Installation, Testing, Commissioning (ITC) of our supplied items, our queries are;

a. Will the labour contractor charge CGST+SGST or IGST ?

b. Can we get ITC credit, if CGST+SGST is charged for ITC job?