A works contract is a mixture of service and transfer of goods. Examples of works contract are construction of a new building, erection, installation of plant and machinery.• Composition scheme is not available to works contractors as it is treated as service under GST. Composition scheme is only available to suppliers of goods. This will be a big blow to the small sub-contractors who cannot opt for composition scheme. They will be forced to register for normal taxation scheme increasing their compliances and costs.
There is palpable concern among taxpayers and businesses over how the new system will work out. Despite the anxiousness, taxpayers across the country have responded very positively to the new interface, with a majority of them having already completed their migration to the new portal.
Services provided by housing societies across the country will not become expensive under the Goods and Services Tax (GST) system, the government said on 14th July 2017.
A RWA shall be required to pay GST on monthly subscription/contribution charged from its members if such subscription is more than Rs 5,000 per member and the annual turnover of RWA by way of supply of services and goods is also Rs 20 lakh or more.
GST affects every part of the business, right from financial reporting and tax accounting to supply chain, technology enablement and contracts redesign.
The need of the hour is to ensure that the GST registration process is complete and the IT, billing and enterprise resource planning (ERPs) are suitably rejigged to fulfil statutory obligations.
The infrastructure sector is the backbone of the Indian economy. The government has been making efforts to boost the sector through various schemes and incentives.
While there is apprehension that a flat GST rate of 18% would lead to increased incidence on infrastructure projects, availability of input tax credits would neutralize such concerns. Thus, contractors and suppliers could look forward to a simpler and efficient tax regime