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GST impact on contract

M N BADI (District Treasury Officer) (39 Points)

01 July 2017

What will be impact of GST on on-going and new work contracts in case of payment made by Government.

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7 Replies

Arjun Lahoti (CA) (26 Points)
Replied 01 July 2017

Which is d payee government i.e. State Gov or CG ??

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Vipul Maheshwari (Goods and Services Tax Consultant) (208 Points)
Replied 01 July 2017

1) TDS is required to be deducted by the government

2) Provision relating TDS has been postponed

M N BADI (District Treasury Officer) (39 Points)
Replied 01 July 2017

@ A 1 arjun. Payment is made by state government in most of case

Arjun Lahoti (CA) (26 Points)
Replied 01 July 2017

In such case 18 Gst is required to be charged in d bill and input tax credit of gst paid inputs can be utilised for such payments.

Arjun Lahoti (CA) (26 Points)
Replied 01 July 2017

Now No composition scheme is thr for Works Contracts.. hence u shd proceed as a normal tax payer.

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M N BADI (District Treasury Officer) (39 Points)
Replied 01 July 2017

currently we deduct 0.60% of bill amount in case of payment over Rs. one crore. Now what percentage ? I just read section - 51 of GST Act. what is provision in this section?

M N BADI (District Treasury Officer) (39 Points)
Replied 01 July 2017

currently we deduct 0.60% of bill amount in case of payment over Rs. one crore. Now what percentage ? I just read section - 51 of GST Act. what is provision in this section?