12% GST is applicable on Work Contract Services on Construction of Roads whether provided by sub-contractor or main contractor.
Rate of tax (service)- In the instant case, the applicant, seeking an advance ruling in respect of the following questions :
1. What Tax Rate to be charged by the sub-contractor to main contractor on Work Contract Services on Construction of Roads?
2. Whether to Charge GST tax of 12% or 18%?
In the present case, the works contract i.e. composite contract of construction of roads has been awarded by the Aurangabad Municipal Corporation to M/s J.P. Enterprises (Main contractor) and the said main contractor has awarded part of said contract to the applicant. The applicant is thus a sub-contractor and for the supply undertaken, has issued invoices by charging GST @ 12%.
entry at serial no.3(iv) of Notification no.11/2017 (CTR) does not specify that it should be made applicable only to a contractor and not a sub-contractor, In the absence of such specification, we are of the opinion that the said entry should apply to the services provided by sub-contractor also.
Held that- In respect of Sub-Contract awarded to the applicant by M/s J.P. Enterprises (main contractor), to whom Aurangabad Municipal Corporation awarded the contract for Executing Work of construction of Concrete Roads in Aurangabad City Packages P-2, the rate to be charged is 6% SGST plus 6% CGST, total 2%, as discussed above.
12% GST is applicable on Work Contract Services on Construction of Roads whether provided by sub-contractor or main contractor.
Rate of tax (service)- In the instant case, the applicant, seeking an advance ruling in respect of the following questions :
1. What Tax Rate to be charged by the sub-contractor to main contractor on Work Contract Services on Construction of Roads?
2. Whether to Charge GST tax of 12% or 18%?
In the present case, the works contract i.e. composite contract of construction of roads has been awarded by the Aurangabad Municipal Corporation to M/s J.P. Enterprises (Main contractor) and the said main contractor has awarded part of said contract to the applicant. The applicant is thus a sub-contractor and for the supply undertaken, has issued invoices by charging GST @ 12%.
entry at serial no.3(iv) of Notification no.11/2017 (CTR) does not specify that it should be made applicable only to a contractor and not a sub-contractor, In the absence of such specification, we are of the opinion that the said entry should apply to the services provided by sub-contractor also.
Held that- In respect of Sub-Contract awarded to the applicant by M/s J.P. Enterprises (main contractor), to whom Aurangabad Municipal Corporation awarded the contract for Executing Work of construction of Concrete Roads in Aurangabad City Packages P-2, the rate to be charged is 6% SGST plus 6% CGST, total 2%, as discussed above.