Table of Contents
Is GST applicable for contract employees?
As per the GST law, services provided by an employee to the employer in accordance with the employment agreement are neither considered as supply of goods nor supply of services. Hence, GST is not leviable in such cases.
What is the GST rate for builders?
1. What are the new GST rates on the construction of residential apartments?
| Rate | Description |
|---|---|
| 1\% | New affordable housing projects |
| Ongoing affordable housing projects opting for new rates | |
| 5\% | Ongoing other than affordable housing projects |
| New other than affordable housing projects |
How is tax calculated on contract work?
A works contract is one under which there is a transfer of goods as part of a service contract. Therefore, service tax is paid at 15\% (prevailing rate as of August 2016) on 40\% of the total contract or 70\% of the service portion by the contractor and the recipient of the service equally.
How do you calculate GST on under construction flats 2021?
GST Rate on Flat Purchase 2021 On residential properties that are not part of the affordable housing segment, GST charges on a flat purchase will be paid at 5\% without an input tax credit (ITC). Residential properties included in the affordable housing segment will be subject to a 1\% GST without an ITC.
What is the GST rate on government contracts in India?
The Central Government vide Notification No. 20/2017-Integrated Tax (Rate),dt. 22-08-2017, has amended the GST rate on Government contracts to 12 percent from 18 percent. This rate would be applicable for ongoing as well as new contracts. Amended rate structure for construction and works contracts are as follows: @18 Percent
What GST law says about sub-contractors?
What GST Law Says? As per Sl no 3, clause (ix) of Notification 11/2017-Central Tax (rate) dt 28.06.2017 as amended upto 25.01.2018, works contract service provided by a sub-contractor to the main contractor providing services in relation to construction of canal, dam or other irrigation works etc comes under slab rate of 12\%.
What do you think about the decrease in the GST rate?
The decrease in rate from 18\% to 12\% for Government works contract is clearly a positive step. The concept is still evolving and we hope GST will achieve its goal of One nation, One tax.
What is the GST rate for construction of roads and bridges?
As per Notification 20/2017, GST on construction of Roads, Canals, bridges and other government works contract comes under the slab rate of 12\% Effective tax rate (percent.)