GST services for contractors.
Works contractors and interior designers deal with composite supply, reverse charge and rate splits between government and private work.
About GST for contractors
A works contract, construction, fitting-out, repair involving both goods and services, is treated as a composite supply of service under GST. Most works contracts are taxed at 18%, with certain government and infrastructure contracts at 12%.
Interior designers and contractors also face reverse-charge situations and the need to claim input credit on materials and subcontractors. Correctly identifying the contract type is what sets your rate and credit position.
GST at a glance
- Works contract: composite service
- Most contracts: 18%
- Certain govt/infra: 12%
- ITC on materials & subcontractors
GST requirements for contractors
- GST registration above the threshold
- Correct works-contract classification and rate
- Tax invoices treating the job as a composite supply
- Input credit on materials and subcontracting
- GSTR-1, GSTR-3B and annual return
- Reverse-charge tracking where applicable
Our GST services for contractors
Common GST challenges
How we get you compliant
Consultation
A free call to understand your business and obligations.
Documents
We collect KYC and business proofs, fully online.
Registration
We obtain or update your GSTIN with the department.
Return filing
Monthly or quarterly returns prepared and filed.
Compliance
Ongoing tracking so you never miss a date.
Documents typically required
GST rates for contractors
| Supply / scenario | GST |
|---|---|
| Works contract (general) | 18% |
| Specified govt / infra contracts | 12% |
| Pure labour (certain) | Exempt |
| Interior fit-out services | 18% |
| Input credit | on materials & subcontracting |
Indicative rates, GST law and notifications change over time. Confirm your exact rate with an Expert before invoicing.
Contractors GST questions
What GST rate applies to a works contract?
Most works contracts are taxed at 18%. Certain government, infrastructure and specified contracts attract a concessional 12%. The exact rate depends on the contract type and client.
Is a works contract goods or services?
Under GST it is treated as a composite supply of service, even though it involves both goods and labour, so it is billed as a single service at the works-contract rate.
Can contractors claim input tax credit?
Yes, on materials, equipment and subcontractor services used for the taxable works contract. Credit chains depend on your suppliers filing correctly.
Do interior designers charge GST?
Yes, interior fit-out and design works are generally taxable at 18%. Pure design/consultancy without execution is also 18% as a professional service.
When is pure-labour work exempt?
Certain pure-labour contracts (for example specified construction of individual residential units under government schemes) can be exempt. We confirm eligibility case by case.
How does GST apply to milestone or retention billing?
GST is generally due at the earlier of invoice or payment for each milestone. Retention amounts have specific timing rules we account for.
Contracting GST, done right.
We pin down your rate, maximise input credit and handle reverse charge across every work order.