TMI BlogClarification/ Guidelines regarding issues pertaining to Contracts awarded by the State Government Departments/ local authorities/ statutory bodies/ PSUs under Government of West Bengal due to the introduction of GST i.e. 1st July 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... f GST, different Departments have sought clarifications on modalities of treatment of pending bills of different contracts in the pre-GST regime. Departments have also sought clarifications with regard to projects which have been approved prior/post to the introduction of GST on 1st July 2017. 2. Now, the following guidelines have to be followed by the Departments/ local authorities/ statutory bodies/ PSUs under Government of West Bengal with respect to treatment of work contracts and supplies in the pre-GST and post-GST regime for: Pre-GST contracts for supply of goods; Pre-GST contracts for supply services; Pre-GST works contracts; Post-GST contracts for supply of goods or services or both. 3. Pre-GST contracts: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of service Service Tax is not applicable. c. Services supplied before 1st July 2017 and invoice/bill raised on or after 1st July 2017 after expiry of 30 days from supply of service Service Tax is applicable. d. Services supplied on or after 1st July 2017 and invoice/bill raised on or after 1st July 2017 WBGST and CGST rates will be applicable. iii. With regard to works contracts (eg: roads, buildings, etc.) where the supply is of both goods and services: Sl. Situation Mode of Treatment a. Works Contracts execut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e project is Rs. 100000/-, the bill/RA bill under GST will arrive at the taxable value in accordance with the formula below: Taxable value = (Value inclusive of taxes) X 100/ (100+ sum of CGST SGST tax rates) So here, the project value (excluding tax), with, lets say, a GST rate of 6% CGST and 6% SGST, will be = 100000 X 100/112= 89285.70/- Thus the bill will be raised as follows: Project value (excluding tax) Rs. 89285.70 Add: CGST @ 6% Rs. 5357.15 Add: SGST @ 6% Rs. 5357.15 Total Rs. 100000.00 It is clarified that un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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