GSTN Clarification on works contract or crematorium services and funeral services

GSTN Clarification on works contract or crematorium services & funeral services

  • Due to misconceptions and rumours, government clarify the interest rate on funeral services & works contract services after a tweet gone viral on twitter i.e “before paying 18% tax on crematorium you cannot die”
  • Moreover GSTN Clarification that there is no GST on the crematorium, mortuary, burial, or funeral services. PIB (press information bureau) tweeted a post clarifying that GST on crematorium services were misguiding.
  • But, the GST rate is 18% for contracts that bears activities like installation, construction or maintenance. PIB made it clear that services are exempted from 18% GST slab and only applicable on work contracts.
  • According to the government authorities, there is no GST applicable on mortuary, burial, funeral or crematorium services and no changes made in this field. The official added that the GST rate raised to 18% for the works contracts provided to government i.e road construction, metro, railways, tunnels, bridges, crematoriums etc.
  • Elements such as cement, steel, etc. are comes under GST at the rate of 28 percent /18 percent, the department raised the rate to correct the inverted duty structure. All the govt dept official made it clear that there was already an 18 percent GST applicable on all other works contracts.
  • As a result, all work contracts will now have a standard rate of 18%. Additionally, the Group of Ministers (GoM) suggestion was a factor behind the GST Council's decision.

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