Latest Query & Reply

Please confirm the rate of tax on civil works contract. Sir confirm the detail civil works contract is allow the composition scheme and avail the input credit. Please confirm the TDS rule in composition scheme.

Reply

18% GST is applicable on construction service, but the rate of tax will differ if construction service provided to government entity.

Further, ITC can be claimed by contractor on input goods and services.

A civil contractor cannot opt composition scheme under GST. Refer section 10(2) of CGST Act, 2017.

TDS compliance has to be done by TDS deductor, As per section 51 of CGST Act, 2017, government authorities have to register as a TDS deductor. The deductee is only required to accept the amount so auto-populated.