This book is a comprehensive guide that discusses and analyses the complexities of GST as it applies to works contracts, construction projects, and EPC contracts across various industries. It covers critical topics such as the definition of works contracts under GST, input tax credit eligibility, valuation, sector-specific guidance (e.g., oil & gas, real estate, power generation), and best practices for tax controversy management. Its practical approach includes case studies, international comparisons, and up-to-date legal precedents.

This book is a helpful reference for tax specialists, legal advisors, and professionals navigating GST compliance in construction and related sectors.

The Present Publication is the 10th Edition and has been amended by the Finance (No. 2) Act, 2024. It covers the recommendations of the 54th GST Council Meeting held on 09-09-2024 and is authored by Sudipta Bhattacharjee, Rishabh Prasad & Abhishek Garg, with the following noteworthy features:

• [What's New in the 10th Edition]

o Latest Amendments – This Edition incorporates all amendments up to 1st September 2024, reflecting the most up-to-date legal changes and amendments in the GST law

o Hot-Button Issues – Expanded coverage of hot-button issues such as:

§ Input Tax Credit in Works Contracts

§ Impact on Advances and Security Deposits

§ Treatment of Free-of-cost Supplies

o Liquidated Damages & GST – A new in-depth chapter discusses the latest legal positions on liquidated damages, mainly focusing on the evolving jurisprudence in India and the European Union/UK

o GST Rates & Classifications – Detailed guidance on GST rates applicable to various works contracts, with clear explanations of classifications and valuations under GST law

• [Comprehensive Practical Guide] The book serves as a complete practical guide providing a detailed understanding of GST's impact on a wide range of construction and EPC contracts, as well as concession agreements

• [Sector-wise Coverage] It includes sector-specific analysis for industries such as oil & gas, roads, real estate, ports, urban water projects, thermal and solar power projects, and large manufacturing units, making it a unique reference guide

• [Detailed Chapter Structure] The book is divided into easy-to-read chapters covering the constitutional framework, sectoral guidance, input tax credit, valuation issues, and complex topics such as immovable property, free-of-cost supplies, liquidated damages, and anti-profiteering provisions

• [Evolution from Pre-GST Era] The text also traces the evolution of key concepts from the pre-GST era, providing a holistic understanding of the shifts in tax law over time

• [International Comparative Perspective] A dedicated chapter explores how construction contracts are treated under international VAT/GST regimes, providing valuable global insights

• [Case Studies] Several chapters feature real-life case studies, helping readers practically understand whether specific contracts would qualify as works contracts under GST

• [Legal Precedents] The book discusses the legal position on liquidated damages in the context of GST, with updated references to international legal frameworks, particularly in the European Union and the UK

• [Practical Strategies] It provides practical strategies for structuring construction and EPC contracts, as well as best practices for managing tax controversies

• [Inclusion of Appendices] The book contains detailed appendices that include relevant notifications and circulars to aid in compliance and practical application of GST laws

The structure of the book is as follows:

• Chapter 1 – Introduction to the Scheme of GST

• Chapter 5 – What is Immovable Property in Works Contracts?

• Chapter 17 – Liquidated Damages Under Works Contracts & GST Implications

• Chapter 22 to 27 – Works Contract Implications in Various Sectors (Oil & Gas, Real Estate, Roads/Highways, Ports, Thermal and Solar Power)

• Chapter 31 – Structuring Various Types of Works Contracts Under GST

• Chapter 33 – Best Practices for Managing Tax Controversies

• Annexures – CGST rate schedules, Maharashtra GST Act, explanatory notes on service classification