ANALYSIS OF PRE GST & POST GST TAXES ON WORKS CONTRACT IN CONSTRUCTION INDUSTRY

GST was implemented on 1 July 2017 and this change in tax system brought various changes in tax calculation in different industries. The current paper focuses on Taxes on Works Contract in construction industry where services and transfer of goods are included in one single transaction under GST regime. Earlier the tax calculation was made on both VAT and Service Tax on certain proportion of amount. The Tax calculation process was quite cumbersome, time consuming and also full of loop-holes as there was no proper method of segregating the value of services and value of goods accurately. But, after implementation of GST, the tax calculation on Works contract is simplified because one composite entry has to be made with single tax rate of 12% (or as applicable). The study has been conducted on live project of Noida, Uttar Pradesh.