WORKS CONTRACT - TAX, Goods and Services Tax - GST

[RV PERUMAL]

Hello friends, I have a situation which needs clarification and advice:

1. Mr. A & Co. is in Bangalore (Principal Contractor) obtained a works contract order from B & Co., situated in Pondicherry state.

2. Issued work order to M/s . C & Co. (Sub-Contractor) situated in Pondicherry to execute the work.

3. After the completion of works, the sub-contractor ( C & Co.) has to issue tax invoice to principal employer ( A & Co. ) situated in Karnataka State, a question is raised whether tax Invoice to issue to his principal contractor under IGST or under CGST & SGST.

Summary:

B & Co. ( Goods & Service Recipient situated & registered in Pondicherry)

A & Co. ( Principal Contractor situated and registered in Karnataka State)

C & Co. ( Sub-Contractor, situated & registered in Pondicherry)

Clarity required: Tax Invoice to issue under IGST or under CGST and SGST.

Posts / Replies

[Rajagopalan Ranganathan]

Sir,

C & Co. have to charge IGST from A & Co the principal contractor since his location is in Karnataka and the supply of service by C & Co., is an inter-state supply.

[Ganeshan Kalyani]

IGST to be charged.