I am sub contractor, i am supply to main contractor item name is (commodity name) pollution control equipment this item what is the rate of tax. i want brief details for work contract and sub contract on act.
If you are selling Pollution Control Equipment (PCE), with Installation service than it is composite supply & GST rate shall be rate equal to PCE.
If only installation service is provided under the capacity of sub contractor with main contractor than GST rate shall be18 % as explained below.
GST rate on subcontractors who are providing services by way of works contract to another contractor (main contractors who has received work contract from Govt. department) providing works contract services will be shall be @ 18% by way of Notification No 20/2017-Central Tax (Rate) New Delhi, the 22 August 2017 and Notification No 24/2017-Central Tax (Rate) New Delhi, the 21 September 2017.
Therefore GST Rate is 18% for Sub contractor providing work contract service to main Contractor.
Sign up to discuss taxation, accounting and finance topics with experts from all over India.Join Discussion