Visakhapatnam Central GST Commissionerate
Civil Contractor pays GST of Rs.3.86 Crores towards Tax Liability
A corporate taxpayer engaged in civil works for Central and State Departments as well as for private entities has defaulted in payment Of GST. On the same being point out, the Contractor deposited Rs.3.86 Crores towards their liability.
The taxpayer was engaged in several activities relating to earthwork such as site clearance, filling up of low level areas, excavation, forming embankment, canal lining. providing CC Roads and drains, repairs to canals. construction of bridge. etc. They were also involved in providing service to Airports Authority for extension of runway including strengthening / resurfacing or existing runway, construction of isolation bay, pavement against blast erosion, etc.
Construction / Works Contract service done for Governmental Entity or for Central or State Government is taxable to GST. Lower rote of tax of 5% applicable for certain types of services.