GST on Repair of Govt Building.
SHIV KUMAR (Co-Founder of Sublime Associates) (245 Points)
03 October 2024How much rate of Tax applicable in this case?
SHIV KUMAR (Co-Founder of Sublime Associates) (245 Points)
03 October 2024
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(4826 Points)
Replied 03 October 2024
SHIV KUMAR
(Co-Founder of Sublime Associates)
(245 Points)
Replied 03 October 2024
Khushbu Bansal
(student)
(48 Points)
Replied 04 October 2024
GST Rate:
TDS Under GST: 2% (1% CGST + 1% SGST) or 2% IGST.
TDS Under Income Tax (194C):
SHIV KUMAR
(Co-Founder of Sublime Associates)
(245 Points)
Replied 05 October 2024
Khushbu Bansal
(student)
(48 Points)
Replied 05 October 2024
You are eligible to avail Input Tax Credit (ITC) provided the following conditions are met:
GST Paid: The contractor should charge GST on the invoices for the services provided. ITC is available on the GST paid to the contractor.
Use in Furtherance of Business: The works should be used for business purposes or as part of business assets (as repairs of government buildings, this might not directly relate to your personal business use unless specified otherwise).
Taxable Supply: The services must be classified as taxable under the GST law, and you should be a registered person under GST.
12% GST Rate: The rate of 12% applies to works contracts for construction, repair, or maintenance of government buildings, as per GST Act under Section 2(119). If the services provided fall under this category, and you satisfy the conditions mentioned above, you should be eligible to claim ITC on the GST paid.
The appropriate HSN Code for these types of services is likely to fall under Chapter 9954, which covers construction services. For specific repair work like you mentioned:
HSN Code 9954 – This is applicable for construction services of buildings and civil engineering works.
Breakdown:
As this work involves repair of government buildings, HSN 995422 should be applicable.
Rajendra Prasad
(Employee Private)
(1860 Points)
Replied 05 October 2024
The repairs and maintenance services provided to CPWD and SADA will be covered under GST rate @ 18% from 18/07/2022, with Input Credit.
SHIV KUMAR
(Co-Founder of Sublime Associates)
(245 Points)
Replied 05 October 2024
Khushbu Bansal
(student)
(48 Points)
Replied 07 October 2024
SHIV KUMAR
(Co-Founder of Sublime Associates)
(245 Points)
Replied 07 October 2024
Could you please mention the section.
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