Sage-Tips

Is GST payable on contracts?

Due to no abatement/ composition is provided, it has led to significant increase in tax burden, especially the works contract is taxed at standard GST rate (which is 18\%) and even though subjected to lower tax rate (12\%).

What is HSN code for paintings?

Code 9701
HSN Code 9701: Paintings, e.g. oil paintings, watercolours and pastels, and drawings executed entirely by hand (excluding technical drawings and the like of heading 4906, and hand-painted or hand-decorated manufactured articles); collages and similar decorative plaques.

What is pure Labour contract under GST?

Various kinds of labour contract A contract constituting only labour service: Under GST, such a contract is termed as a pure labour contract. The supplier of service should not use any material in providing the service.

What is the maximum rate of GST in India?

The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5\%, 12\%, 18\% and 28\% under GST. This is aside the tax on gold that is kept at 3\% and rough precious and semi-precious stones that are placed at a special rate of 0.25\% under GST.

What is the GST rate for painting in India?

GST Rate is 18\% and ITC is available for maintenance related work. If paint is on construction building than ITC is not available. Painting Services where Material and Service is provided by contractor it comes under works contract and Rate would be as follows.

What is the impact of GST on works contracts?

GST aims to put at rest the controversy by defining what will constitute a works contract (applicable for immovable property only), by stating that a works contract will constitute a supply of service and specifying a uniform rate of tax applicable on same value across India.

Is there any tax on the cost of painting in construction?

If the cost of paint is major part of contract and service charge is negligible then the Tax rate on paint is applicable. Simply think mixed supply rules. input of painting on construction is not allowed in general except in special case, if painting is used for machinery then input tax credit is allowed

What is the deadline for filing GST return under GST?

Finally, annual GST return must be filed by all GST registered entities on/before the 31st of December. A registered taxpayer under Painting work , Building Painting work etc. Services can claim the credit of taxes paid by him on inward supplies if he has a valid invoice and taxes are deposited by the supplier to the Govt.