Composite supply

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..... Composite supply
Query (Issue) Started By: - THYAGARAJAN KALYANASUNDARAM Dated:- 1-8-2017 Last Reply Date:- 1-8-2017 Goods and Services Tax - GST
Got 11 Replies
GST
Dear expert, I would like know what is the rate of tax for contract under painting work. The paint is under 28% and the labour under 18%. Here which one is principal supply. Thanks in advance. Reply By Kishan Barai: .....

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..... The Reply: Principal supply is paint for painting work, so 28% according to my view. Reply By Vamsi Krishna: The Reply: Generally for composite tax cases, principal rate of tax only applies. Its better to enter works contract with the contractor where he will get paint and bill you. In such case 18% tax shall be levied. (I hope the painting is for construction activity,pls read Works contract .....

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..... definition) Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Thank u do much for your kind response. Reply By KASTURI SETHI: The Reply: Dear Querist, In the example cited by you, GST @18% is applicable. Reply By Kishan Barai: The Reply: If your are doing contract work for Painting Company then 18% Or But if you do painting work for other house / Office then to purchase paint 28% would .....

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..... be Applicable & for your services 18% Please correct me if I am wrong Reply By KASTURI SETHI: The Reply: Sh.Kishan Barai Ji, Sir, You are absolutely right. Reply By KASTURI SETHI: The Reply: In such situation ITC overflows and no refund is admissible. Reply By Vamsi Krishna: The Reply: If you are executing works for Immovable property it is termed as Works contract and 18% rate is appli .....

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..... cable (Ref 2(119) for definition of works contract). If you are not covered under the above definition, you will fall into composite supply under sec.8 where principal supply concept will come into picture. Under composite supply since supply is rated @ 28%, your further works on it may also be charged under 28%. Reply By KASTURI SETHI: The Reply: Sh. Vamsi Krishna ji, Thanks for throwing mo .....

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..... re light on the issue. Reply By Vamsi Krishna: The Reply: Its pleasure to be part of forum having experts.. welcome sir.. Reply By THYAGARAJAN KALYANASUNDARAM: The Reply: Dear expert, Thanks a lot for your valuable instant reply and support sir.
Discussion Forum - Knowledge Sharing .....

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