Service contracts set to be renegotiated under GST

March 21, 2017   admin  GST News
gst service contract
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Some of the service contracts are set to be renegotiated under the goods and services tax (GST) framework as it levies different tax rates in some peculiar situations, said industry trackers.

According to the industry trackers, service contract tax rates would be different if the service provider also provides raw material used to execute the contract. For example if your plumber fixes your tap in your kitchen it could be taxed differently if the tap is brought by him or by you.
Experts point out that this will impact several sectors like infrastructure and real estate. In some cases the contracts are already being renegotiated.
The Cabinet on Monday cleared GST supplementary legislation. This paves the way for faster GST implementation in the country.

 

The Economic Times, 20 March 2017
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