Goods and Services Tax – GST – By: – Anuj Bansal – Dated:- 26-8-2017 Last Replied Date:- 21-10-2017 – As you are aware that Governmentof India has released a Notification No. 20/2017-Central Tax (Rate) on 22nd April 2017 making certain amendments in the previous notification No. 11/2017- Central Tax (Rate), dated the 28thJune, 2017. In the said notification, rates have been reduced from 9% to 6% on certain specific kind of services which also includes certain kind of construction contracts specifically the services relating to construction of public utility, govt. projects, etc.Following are the construction services where the rate of tax has been reduced from 9% to 6% CGST: Composite supply of works contract supplied to the Government Composite supply of works contract supplied to the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- a) a
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te participation under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers; (d) a civil structure or any other original works pertaining to the Beneficiary led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) a pollution control or effluent treatment plant, except located as a part of a factory; or (f) a structure meant for funeral, burial or cremation of deceased. Composite supply of works contract excluding completion, fitting out, repair, maintenance, renovation or alteration Composite supply of works contract supplied by way of construction, erection, commissioning, or installation of original works pertaining to- 1. Railways, excluding monorail and metro; 2. A single residential unit otherwise than as a part of a residential complex; 3. Low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under
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overnment was not compensating the builders for additional tax burden due to their limited budgets whereas the builders were reanalyzing the tax impact and making representations for compensation on account of increase in GST. Moreover, the act of reducing rate is a positive step towards development of the infrastructure of the country. The corresponding notification has been released in IGST and UTGST. Thus effective rate of GST on such services has been reduced from 18% to 12%. States are yet to release corresponding notification in their respective SGST. Anuj Bansal V.P.Gupta & Co. (www.vpgco.com) – Reply By SHIVKUMAR SHARMA – The Reply = Please read the Date 22nd August 2017 Instead of 22nd April 2017 of Notification No.20/2017-Central Tax(Rate) – Reply By Anuj Bansal – The Reply = Apology for writing 22nd Aug, 2017 as 22nd April, 2017. Its a clerical mistake. Thanks Mr. Shiv Kumar for correcting. – Reply By KASTURI SETHI – The Reply = Nice article Sir. It is a mirror. – Reply
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