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07. Sec.2(119)- Works contract under GST
iii) No, the activity of assembling units will not qualify as works contract as it is
CCP 02.07.15.00 relation to a movable property.
CH 2 Define the term 'Works Contract' iv) Yes, the given activity is in relation to building which is immovable property &
Answer: As per section 2(119) of CGST Act , “works contract” means a contract for thus qualifies as works contract.
Charge of Tax & Concept of Supply
building, construction, fabrication, completion, erection, installation, fitting out,
improvement, modification, repair, maintenance, renovation, alteration or 08. Sec.7(1)- Meaning and scope of supply
commissioning CCP 02.08.17.00
Ø of any immovable property When does a particular activity attract GST? Explain the scope?
Ø wherein transfer of property in goods (whether as goods or in some other Answer: As per section 9 of CGST act, GST is leviable on supply of goods / services

form) is involved in the execution of such contract or both& also
As per section 7 of CGST act, supply includes
CCP 02.07.16.00 (1) All forms of supply of goods or services or both
Aspire Ltd enters into contract with Beta Ltd for execution of works contract Ø such as sale, transfer, barter, exchange, licence, rental, lease, or disposal
for ` 50,00,000 excluding taxes for following activities pertaining to construction Ø made or agreed to be made for a consideration by a person
of a complex. Determine whether the following activities fall under the ambit of Ø in the course or furtherance of business
'works contract' (2) import of services for a consideration whether or not in course or furtherance of

i) Erection & installation of structural designs to the complex which involved business and
material. (3) the activities specified in Schedule I , made or agreed to be made without a
ii) Fabrication works relating to the structure of complex no material is consideration
involved. Thus, all the activities specified above falling under the scope of
iii) Assembling of units pertaining to movable property which involved supply shall attract GST excluding
material and goods. (a) those activities as specified in Schedule III.

iv) Tiling & painting work of the entire building which involved material. (b) such activities or transactions undertaken by the Central Government, a
Answer: As per section 2(119) of CGST Act , defining the term works contract. Only if State Government or any local authority in which they are engaged as public
the activities fall under the definition it shall be considered as a works contract. authorities, as may be notified by the Government on the recommendations
I) Yes, the given activity is in relation to an immovable property thus qualifies as a of the Council,
works contract Ø Services by way of any activity in relation to a function entrusted to a
ii) No, even though the given activity of fabrication is in relation to immovable Panchayat under article 243G OR to a Municipality under article 243W

property thus it does not qualifies as works contract because material is not of constitution.
involved. Ø Service by way of grant of alcoholic liquor licence, against consideration by

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