Respected Sir,
As my customer is govt work contractor and
working with huge amount of contract.
please suggest me
1. What is a GST rate of work contractor to be
charge in bill to govt.?
2. Can I take input credit of Materials like
(Cement, Steel etc) which are used in construction also?
3. If I make separate bill of material and
contract fee what would be rate then.
Reply
Dear Sir,
1. Rate of GST on government works contract is depends upon the
nature of work, there are different GST rate for different kind of construction
work. For example, for construction of canal, dam or other irrigation work
GST rate is 12% while for construction of civil structure GST rate is 18% and
so on.
2. Yes, when work
is done by contractors on behalf of government then contractor will be eligible
for input tax credit on material purchased in execution of contract.
3. This service is
covered under composite supply, therefore the contractor should issue a common
invoice for material and contract fee instead of separate invoice.