Tax applicable rate of work-contractor
A GST regular scheme registered work contractor works different govt works. Dealer works completed amounts of payments received through on bank account credit. Purchases of iron and cement from reg dealers.
- The dealer works amount through on bank account received amounts GST tax applicable.
2. Purchases input credit claimed allowed.
Works contract or works contractor is considered as a service provider in GST so
18% GST rate is applicable on and full ITC will be allowed to claim if its using that items in works only.
please note :- 18% GST applied on Full Amount of Bill (MB) prepared by pwd or else NOT applied on that amount which is credited to the account.