{"id":2037,"date":"2019-09-28T14:15:54","date_gmt":"2019-09-28T08:45:54","guid":{"rendered":"https:\/\/aktassociates.com\/blog\/?p=2037"},"modified":"2019-09-28T14:15:54","modified_gmt":"2019-09-28T08:45:54","slug":"gst-on-works-contract","status":"publish","type":"post","link":"https:\/\/aktassociates.com\/blog\/gst-on-works-contract\/","title":{"rendered":"GST on Works Contract"},"content":{"rendered":"

As per section 2(119) of CGST Act, if there is a mixture of supply of goods and services at a single price and which results from the Immovable property<\/a> then such supply shall be called the works contract. It includes the construction of a new building, erection, installation of plant and machinery.<\/span><\/p>\n

\"gst<\/p>\n

Before the application of GST, there was a very complicated law was drafted about the taxability of works contract and the bifurcation of the part to be considered as services and goods.<\/span><\/p>\n

However, under the GST law, there is one provision has been defined under schedule II read with section 7of CGST Act, 2017, which states that whether the supply shall be treated as supply of service or supply of goods. As per this rule, works contract is a supply of services. It is a composite supply since in this contract 2 or more supplies are provided together which are naturally bundled in conjunction with each other.<\/span><\/p>\n

One of the objectives of GST was to remove the confusion regarding the tax treatment and through this amendment, it can be easily said that the GST has fulfilled this objective.<\/span><\/p>\n

In simple words, works contract shall be treated as supply of service and tax would be charged accordingly (and not on the goods or services part separately).<\/span><\/p>\n

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In this article, we will discuss about...<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n