Impact of GST Rates on Works Contract Services in India

GST Impact on Works Contract

In simple words, a work contract is basically an agreement of service which may likewise include the supply of products in the execution of the agreement. It is mainly a combined supply of goods and services, where in the agreement between parties, service factor plays the key role.

Generally, a work contract is associated with both immovable and movable properties. For example, if a sub-contractor accepts a sub-contract of the work of the building, it will be a contract of work in regards to immovable property. In the same manner, if a compound supply in reference with the movable property like fabrication/painting/annual maintenance contracts etc. is approached, then the same would come surprisingly close to the expansive meaning of a works contract. How will GST impact on works contract? Let’s understand here. Read More