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All QuestionsCategory: GST ConsultancyTax applicable rate of work-contractor
Profile photo of Kollipara sundaraiahKollipara sundaraiah asked 3 years ago

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.


  1. The dealer works amount through on bank account received amounts GST tax applicable.
    2. Purchases input credit claimed allowed.
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1 Answers
Profile photo of SARTHAK GUPTASARTHAK GUPTA answered 3 years ago

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.

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