My client has taken a sub-contract from a company for installation of road lights. They are providing services to the company. Also using materials like cables, pipes and led lights. All costs are included in total contract price. Now, what GST rate will be applicable in this case. 12% or 18% ?

Reply: As per clause (ix) of S.No. 3 of Notification 11/2017-Central Tax (rate) dt 28.06.2017Composite supply of Works contract provided by a sub-contractor to the main contractor providing services specified in clause (iii) or clause (vi)  of Sl no 3,  to Central government, State Government, union territory, a local authority, a governmental Authority or a Government entity  are taxable @12%. Construction of roads is covered in clause (iv) of S.No.3 of the notification. So sub-contract for construction of roads comes under 18% slab.