Table of Contents
Is GST applicable for sub contractors?
“GST rate on subject supply is 18\% for services supplied by the sub sub-contractor to sub-contractor M/s Radhe and supply merits entry at Heading 9954, Entry No 3(ii) of Notification No. 11/2017-CT(R) dated 28-6-17,” the AAR ruled.
Is GST applicable on government contracts?
(ii) composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017.
What is the GST rate for government work contracts?
12\%
GST Rate on Works Contract
| Description | HSN Code | GST rate |
|---|---|---|
| Works contract mostly involving earth work to government | 9954 | 5\% |
| Oil exploration works contract (construction) | 9954 | 12\% |
| Works contract by sub contractor to main contractor (construction) who in turn provides above services to the government | 9954 | 12\% |
What is the GST rate for builders?
In March 2019, the GST Council cut the tax rates to 5\% from 12\% on residential properties and 1\% from 8\% for the affordable housing segment….1. What are the new GST rates on the construction of residential apartments?
| Rate | Description |
|---|---|
| 1\% | New affordable housing projects |
Is GST applicable on construction of building?
GST at 12\% was applicable on ‘supply of real estate before completion i.e Purchased in the under-construction stage. ‘ A concessional rate of 8\% was applicable for units qualifying for Affordable Housing.
What is the current GST rate for under construction flats?
However, under GST a single rate of 12\% is applicable on under construction properties whereas no GST is applicable on completed or ready to sale properties only if the Completion Certificate (CC) has been issued.
What is the GST rate for contractors?
GST Rate on Works Contract
| Canal, dam, water supply, sewage treatment | 18\% |
|---|---|
| Oil exploration works contract. | 18\% |
| Works contract awarded to the subcontractor by the main contractor, who provides the services mentioned above to the government. | 12\% |
| A road, bridge, canal, or terminal for public use in road transportation. | 12\% |
What is the GST rate on construction?
How does a sub contractor pay tax?
All subcontractors must file and pay taxes including state, local and federal income and self-employment taxes on their own. The general contractor must file IRS Form 1099-MISC if the subcontractor earns over $600.