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Works Contract – Sec 2(119)

Works Contract – Sec 2(119)

Works Contract means:

  • A contract wherein transfer of property in goods is involved in the execution of such contract;
  • Includes contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property.
  • The expression ‘works contract’ is limited to contracts to do with immoveable property, unlike the erstwhile definition of the term given in Service Tax Law which extended to moveable property. Further as per Schedule II of CGST Act , Work Contract is regarded as supply of service.
GST-Goods and Service Tax | Tina Saha |