Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Work contract under gst

satyanarayana (Accountant) (149 Points)

02 December 2017

Sir,

My Client Operating Work Contract Business, We were register under GST and MSME and got licenses.

Business Activity :JCB Machinery Equipment Renting and leasing of Earth Works ,construction and civil-engineering Works.

While Register Under GST, We Choose Option SAC:00440410. We Charged GST Rate is 18%.

Kindly Gudie us -- a) ITC is elgible for this work

b) GST Returns(GSTR-3B) Not Yet Prepared From Aug 2017 to Till date.

c) Business Operation Starting from Sep 2017.

d) TDS to be deducted on this Work.

e) GST Return(GSTR-3B,GSTR-1) Filling Process Flow .

Reply
Follow
Share

2 Replies

Manu Kumar Rana (New Updates ) (358 Points)
Replied 03 December 2017

hi Satya,

SAC:00440410 is required to choose while doing GST registration in the GST portal.
after that SAC is 9954 for works contract service.

Explanation .

A. You can take ITC on works contract

B. In which month, you have got GSTIN registration from thatdays onwards you are eligible to file GSTR 3B return .still if you are not filed GSTR 3B return then you need to be filed GSTR 3b with interest, late fee asap.

c. If you have done registered under GST in 1first Aug month.in the same month if you don't have any business transaction after that also you need to be filed Nil GSTR 3b return .

d. yes. TDS is applicable on works contract

e. refer to notification 56/2017- central tax ,57/2017- central tax,58/2017 - central tax,64/2017- central tax.

Note . On the business activity, actually when you had purchased JCB machinery while how much GST rate you have paid the same GST rate 28% is applicable on hire charge of JCB machinery ( sac :9973 ),if you didn't get a declaration letter from Govt. refer to notification 11/2017- central tax ( rate ).