Work contract

This query is : Resolved

Anshuman Basu (Querist)
Follow

04 June 2018 Our Company Purchase Electrical fitting, Lamp Post, TMT Bar, Bricks, Cement etc are supply to Party (Rail, Corporation) and these items we also installed, testing and erection.
Pre GST period we made two bill one bill was Supply Bill (VAT or CST Bill) and another Bill was Erection, Testing and Installation Bill (service tax).
In post GST what will the bill structure and should I get ITC?
What is the meaning of “Input tax credit on inward supply of works contract services is allowed only if the same are used for providing outward supply of works contract services” Pl make some example

Pl. answer me

CA Padmasri Manyam

CA Padmasri Manyam (Expert)
Follow

04 June 2018 Under GST you need to issue tax invoice as service including goods value.
Example: procured cement, bricks, TMT bar and used labour services for installation, erection etc which results in immovable property. In this case you are providing works contract services to rail corporation. Therefore, you need to issue tax invoice as service for total value including material value.
Input tax credit:
What you purchased is goods, services (separately) not works contract services. Therefore, there is no question of input tax credit on works contract services. You can take input tax credit without any restriction. if you take any sub-contractor help who does construction then we can say that you received works contract services. Then you need to check whether your outward supply is works contract or not to take input tax credit.
let me know if the above explanation is not clear.