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Rate of tax on Painting contract, Goods and Services Tax - GST

Issue Id: - 116161
Dated: 20-3-2020
By:- Bharat Cholleti
Rate of tax on Painting contract

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Dear sir,

Rate of tax on painting contracts to apartments and buildings, is he eligible for ITC. As painting contracts involves labour. Section 8 of CGST Act says rate of tax should be applicable on principal supply. pl advise.

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Showing Replies 1 to 7 of 7 Records

1 Dated: 21-3-2020
By:- Rajagopalan Ranganathan


If the contract is for supply of paints and labour, then it will be treated as works contract. According to Section 17 (5) (c) of CGST Act, 2017 input tax credit shall not be available in respect of works contract services when supplied for construction of an immovable property (other than plant and machinery).

According to Explanation under Section 17 (5) (d) "for the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalization, to the said immovable property".

2 Dated: 23-3-2020
By:- Rachit Agarwal

Painting of Apartment being newly constructed would not be eligible for ITC as the same takes the colours of construction of Immovable Property

Painting of Old Apartment would be in nature of Repairs and Maintenance and would be eligible for claim of credit of ITC and restriction would not apply.

Rate of Tax shall be as that of Works Contract Services.

3 Dated: 27-3-2020
By:- Ethirajan Parthasarathy

I am under the impression that restriction under section 17(5) applies to receiver of service.Pls see answers to issue 116150

The query here is from the angle of painting contractor who has nothing to do about capitalisation in the books of contractee.Hence I am of the opinion he is entitled to take input credit irrespective whether the building is new or old

4 Dated: 28-3-2020
By:- Ganeshan Kalyani

The input tax credit would be available to the recipient of service if he accounts it as a revenue expenses.

5 Dated: 29-3-2020

Sh.Ganeshan Kalyani Ji,

The querist is asking whether ITC is available to the supplier of service (Painting Contractor).

6 Dated: 29-3-2020
By:- Ganeshan Kalyani

The supplier of service is eligible yo take credit on the inputs like paint purchase (if it is in his scope) , labour charges paid by him to manpower supplier. Since the said expenses is an input service for the purpose of providing output service the credit on inputs would be elogible.

7 Dated: 29-3-2020

Sh.Ganeshan Kalyani Ji,

I concur with your views.


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