GST on Works Contract & Other Construction/EPC Contracts By Sudipta Bhattacharjee, Rishabh Prasad & Abhishek Garg – 11th Edition 2025

Description

This comprehensive treatise offers a complete analysis of the implications of the Goods and Services Tax (GST) on works contracts and construction and EPC (Engineering, Procurement & Construction) contracts. The book simplifies the intricacies of GST law, providing sector-specific insights for areas such as oil & gas, real estate, manufacturing, thermal power, roads, ports, and water supply projects. Incorporating a wealth of case studies, practical examples, and landmark judgments simplifies the complexities surrounding liquidated damages, security deposits/advances, anti-profiteering, valuation, etc. It also discusses litigation strategies, helping professionals anticipate and manage potential disputes.

This book is intended for the following audience:

• Tax Practitioners & Consultants – For expert guidance on GST-related nuances of works contracts
• Lawyers & Legal Professionals – For in-depth legal analysis and recent judicial precedents concerning contract disputes under GST
• Builders, EPC Contractors & Real Estate Developers – For clarity on complex compliance requirements, input tax credit mechanisms, and tax-saving strategies
• Finance & Accounting Professionals – For insights into time of supply, invoice issuance, and valuation in works contracts
• Corporate & Project Managers – For a practical understanding of GST in ongoing and upcoming infrastructure, construction, and EPC projects

The Present Publication is the 11^th Edition | 2025 and has been amended by the Finance Act 2025. It is authored by Sudipta Bhattacharjee, Rishabh Prasad & Abhishek Garg, with the following noteworthy features:

• [Finance Act 2025 Amendments] Incorporates and clarifies the latest changes introduced by the Finance Act 2025, ensuring readers have up-to-date information on GST laws
• [Comprehensive Coverage & Comparative Insights] Detailed exploration of the definition, scope, and classification of works contracts under GST with references to pre-GST regimes and international VAT/GST practices
• [Latest Case Laws & Landmark Judgments] Features analysis of crucial judgments, including those on Safari Retreats, Bharti Airtel, and European case references. It also discusses HMRC advisories and their relevance to the Indian context
• [Sector-wise Chapters] Detailed coverage of GST implications in Oil & Gas, Real Estate, Roads, Ports, Thermal Power, Water Supply, and Manufacturing projects
• [Deep Dive into Disputes & Litigation Tips] Explores key contractual disputes, anti-profiteering issues, liquidated damages, security deposits, and ‘free of cost’ supplies under GST. It also provides guidance on legal arguments for handling controversies
• [Practical Case Studies & Examples] Contains numerous scenarios illustrating how to classify a contract, optimise tax credits, and manage compliance obligations
• [User-friendly Approach] Features step-by-step explanations, flowcharts, and checklists, making the GST ecosystem accessible even to non-tax professionals

The coverage of the book is as follows:

• Fundamentals of GST & Its Applicability
  • Introduction to the scheme and evolution of works contracts pre- and post-GST
• Core Definitions & Concepts
  • Detailed understanding of the term’ works contract’ and what constitutes ‘immovable property’ and ‘transfer of property in goods’
• Composite & Mixed Supplies
  • Guidance on differentiating composite contracts from mixed supplies, ensuring correct classification under GST.
• Time of Supply, Valuation & Input Tax Credit
  • Points of taxation, procedures for invoicing, and treatment of advances/security deposits
  • Valuation principles, including provisions around ‘free of cost’ supplies and liquidated damages
• Place of Supply & TDS Provisions
  • Comprehensive coverage of place of supply rules, vital for cross-border/ inter-state works contracts
  • Explanation of TDS mechanisms under GST for works contracts
• Sector-Specific Analysis
  • Separate chapters focusing on real estate, roads, thermal power, ports, oil & gas, large manufacturing plants, and solar power projects
• Anti-Profiteering & Dispute Management
  • Commentary on anti-profiteering measures and strategies to handle investigations and litigations
  • Practical strategies for tax controversy management, including best practices on drafting and structuring works contracts
• Transitions & Comparisons
  • Special discussion on the transition from pre-GST to GST regime and practical tips to handle legacy contract disputes
  • Comparative insights with Middle-East VAT regimes to help multinational businesses

The structure of the book is as follows:

• Introductory Chapters – Set the stage with an overview of GST, including historical context, the evolution of works contract laws, and the significance of the Finance Act 2025
• Definitional & Conceptual Chapters – Focus on core definitions like immovable property, transfer of property, and composite vs. mixed supply
• Applicability & Compliance – Chapters dedicated to registration, invoicing, time of supply, valuation, place of supply rules, and TDS under GST
• Practical Insights & Case Studies – Examples illustrate crucial concepts such as free-of-cost supplies, liquidated damages, security deposits, and dispute-resolution strategies
• Sectoral/Industry-Focused Chapters – Each major sector—Real Estate, Oil & Gas, Ports, Thermal Power, Solar Power, etc.—has its chapter exploring specific concerns and solutions
• Advanced Topics & Strategic Guidance – Addresses more nuanced issues such as anti-profiteering, best practices for contract structuring, and offshore supply tax controversies
• Supplementary Materials – Annexures with rate schedules, relevant notifications, and guidelines for quick reference