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Which of the following contracts is a works contract under Section 2(119) of the CGST Act, 2017?

Question and options

Which of the following contracts is a works contract under Section 2(119) of the CGST Act, 2017?

  1. Repairing the customer's delivery van, with spare parts supplied by the repairer

  2. Fabricating a machine to the customer's design and delivering it to the customer's factory

  3. Building an office on the customer's land, using the contractor's own cement and steel

  4. Supplying furniture made to the customer's measurements for the customer's office

Answer and explanation

Correct answer: C - Building an office on the customer's land, using the contractor's own cement and steel

Section 2(119) of the CGST Act, 2017 confines a works contract to building, construction, fabrication, installation, repair and similar work on immovable property, where property in goods is transferred in executing the contract. Building an office on land fits. A machine, a van and made-to-measure furniture are movable, so those contracts are supplies of goods or composite supplies, not works contracts.

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