rate of works contract
pawan bharati (47 Points)
14 June 2017will they go under composition scheme?
pawan bharati (47 Points)
14 June 2017
Shivam Chomal
(498 Points)
Replied 14 June 2017
If the work contract includes composite supply like here civil,mechanical and electrical under same contract it will be liable to 18% GST with full availability of ITC.
However since works contract has been specifically defined as 'services' under GST and also under GST, since composition scheme is not available to 'service providers' ; hence work contractors can't opt for composition scheme and have to go for normal scheme only.
pawan bharati
(47 Points)
Replied 15 June 2017
Shivam Chomal
(498 Points)
Replied 16 June 2017
It will depend on the nature of work performed and terms in agreement, like in the case of civil construction intended for sale rate is 12%,with full ITC.