Question25:

Please clarify rate of GST applicable on Work contract Service by Sub Contractor for Government contract.

As main contract is being awarded to another contractor and our contractor is doing  Sub Contract and raise bills in the name of main contractor .

As total 5 number nos. of notification are issued in this regards as follows :
1. 11/2017 CT(Rate) dated 28/06/2017
2 20/2017-CT (Rate ) dated 22/08/2017.
3 24/2017-CT (Rate ) dated 21/09/2017.
4 31/2017-CT ( Rate ) dated 13/10/2017.
5 01/2018-CT (Rate ) dated 25/01/2018.
Notification number 01/2018 ct(rate ) dated 25/01/2018 clarify that Item number (ix) inserted for sub contractor rate of tax as 12% if the main contractor is a supplier of Govt WCT services. But the same is applicable only for "Composite supply of work contract as defined in clause (119) of section 2 of the Central Goods and Service Tax Act,2017 provided by a sub contractor to the main contractor providing specified in item (iii) or item (vi) above to government"
Our query is that is the same rate is applicable only for Composite supply of work contract or only labor supplies work are  also entitled for GST rate @ 12%.
 

Answer 

Rate of 12% in  Item number (ix) inserted vide Notification No. 01/2018 ct(rate ) dated 25/01/2018 is applicable only for Composite supply of work contract u/s 2(119) provided by a sub contractor to the main contractor specified in item (iii) or item (vi) above to government.
Thus Labor service by sub-contractor to main contractor are  under other Construction services HSN 9954 @ 18%.(REPLY dt. 27-02-2018)