GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
AUDIT BRANCH
No. 7899-F(Y) Dated, the 22nd December, 2017
MEMORANDUM
1. The Finance Department has earlier issued Notification No. 6943-F(Y) dated 13.11.2017 in partial modification of Notification No. 5050-F(Y) dated 16.08.2017, regarding issues pertaining to contracts awarded by the State Government departments/ Local Authorities/ Statutory Bodies/ PSUs under Government of West Bengal due to introduction of GST.
2. Recently, the rate of tax on goods like Marble, Granite, Plywood, Ceramic flooring blocks, Glass, Iron & Steel Sanitary wares, Electrical distribution & control panel boards etc. have been reduced from 28% to 18% with effect from 15.11.2017.
3. Therefore, after careful consideration of such reduction of the tax burden and the overall aspect of availability of input tax credit on such goods to a vendor/contractor under GST, the enhancement of the value/price of the goods as notified in Finance Department Notification, is reduced proportionately to such percentage as given in column (4) of the Table as follows:-
| Sl. | Situation | Enhanced rate as per Notification No. 6943-F(Y) | Revised enhanced Rate |
| (1) | (2) | (3) | (4) |
| 1. | Exclusive contract for supply of goods. | 11% | 2.2% |
| 2. | Supply of goods in the execution of Works Contract, as defined u/s 2(119) of the WBGST Act, 2017. | 9.5% | 1.9% |
4. This percentage of enhancement of the value/price of the goods as given in column (4) of the Table above is applicable subject to the condition that general applicable rate of Central Excise Duty on such goods was 12.5% but was exempted for the contract under consideration in the pre GST period.
5. In case the general rate of duty was lower than 12.5%, or in case, if the GST rate on Works Contract is 5% (instead of 12%), the value/price as agreed upon in the contract with respect to such supply of goods will remain as it is i.e. there will be no revision of any contractual values in the contract.
This order is issued in the interest of public service and in partial modification of Finance Department Notification No. 6943-F(Y) dated 13.11.2017.
This order takes effect from 15.11.2017.
Sd/- H.K.Dwivedi (IAS)
Principal Secretary to the
Government of West Bengal