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Works contract

basant (manager finance) (105 Points)

01 February 2018

We have received an EPC contract from Government which comprising the construction works of civil structure and Supply, Installation, Testing and Commissioning of Pumping Machineries with two years of Operation and Maintainence of it.

I want to know, will it be considered under Composite Supply of Works Contract and if yes, then what would be GST rate applicable? Can we claim ITC for the materials used for completion of the project?

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7 Replies

sruti ranjan biswal (icwai) (22 Points)
Replied 01 February 2018

same question

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Sujata Gurung (29 Points)
Replied 02 February 2018

Yes, it will be considered composite supply of works contract. You can claim ITC for the materials used for completion of the project. The Gst rate is 12%, if the services are being provided to government dept.

ramkumarsingh8591@gmail.com (66 Points)
Replied 03 February 2018

if prasar bharti construct building maintenance , then GST on work contract is 18 or 12%

Sujata Gurung (29 Points)
Replied 03 February 2018

Prasar Bharati cannot be considered by definition as 'the government' or local authorities. Hence the Gst rate applicable is 18%.

ramkumarsingh8591@gmail.com (66 Points)
Replied 04 February 2018

if prasarbharti takes deposit work of PNB,EPFO,govt department then what shall be work contract GST.

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Sujata Gurung (29 Points)
Replied 05 February 2018

If prasar Bharati takes deposit of govt department then the Gst rate is 12 %

basant (manager finance) (105 Points)
Replied 07 February 2018

Does it require to give any intimation prior to start the work and invoicing to GST department as were necessary to get permission from VAT department under old tax regime to start work under Works Contract?