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back to back sub contract rate of gst 12% or 18%

Ravi G (Student CA Final ) (35 Points)

08 January 2018

what is GST rate on sub contract of government canal dams received from main contractor?

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2 Replies

Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 08 January 2018

as per my knowledge

section 5 of CGST Act specifically used wordings of Contact

and as per section 2 (119) Works contract does not include sub contractor

Hence Sub contractor have to charge 18% instead of 12% (Applicable to govenment contract)

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Umesh V Naig (Statutory Analyst) (452 Points)
Replied 09 January 2018

if you are meaning service tax regime ie before GST , please take a reference to Circular No 147/16/2011 -Service Tax dated 21.10.2011 where is back to back sub contract is also considered as govt work and rates are chargeable accordingly.

But after GST subsumed all the earlier indirect laws , there is no such circular and the Govt sub contract rate has been changed from 22.8.17 to 12% only