November 2022

When it comes to the Goods and Services Tax (GST) system in India, understanding the concept of composite supply is crucial for businesses. One of the important questions that businesses often ask is whether works contract is a composite supply under GST. In this article, we will explore this question in detail.

Firstly, let us understand what is meant by a composite supply. In GST, a composite supply is a supply consisting of two or more goods or services that are naturally bundled and supplied in conjunction with each other in the ordinary course of business. In other words, it is a package deal where the components are not available separately.

Now, coming to the question of whether works contract is a composite supply, the answer is yes. As per the GST Act, works contract is considered a composite supply as it involves the supply of both goods and services. Generally, works contract involves the transfer of property in goods (such as construction materials) as well as the provision of services (such as labour and supervision) for the execution of a work.

The GST Act defines works contract as a contract for building, construction, fabrication, completion, erection, installation, fitting-out, improvement, modification, repair, renovation, alteration or commissioning of any immovable property. This includes any related transfer of property in goods and services.

However, there is an exception to this rule. If the value of goods supplied as part of a works contract is less than 25% of the total value of the contract, then it will not be considered a composite supply. In such a case, only the service portion of the contract will be subject to GST.

It is important for businesses to understand the concept of composite supply as it affects the GST treatment of their transactions. In the case of a composite supply, GST is levied on the entire package at the rate applicable to the principal supply. The principal supply is the main component of the package that gives it its essential character.

In conclusion, works contract is considered a composite supply under GST as it involves the provision of both goods and services. However, if the value of goods supplied is less than 25% of the total value of the contract, then it will not be considered a composite supply. Businesses should keep this in mind while dealing with works contracts to ensure compliance with GST regulations.

The Inuvialuit Final Agreement: An Overview

The Inuvialuit Final Agreement (IFA) is a comprehensive land claims agreement that was signed in 1984 between the Canadian government and the Inuvialuit people of the western Arctic region. The agreement, which covers over 90,000 square miles of land, waters, and islands, represents a significant milestone in the history of Indigenous peoples` rights and land claims in Canada.

The IFA is intended to provide the Inuvialuit people with greater control over their land and resources, and to ensure that they receive a fair share of the benefits derived from economic development in the region. It also recognizes the Inuvialuit people`s traditional way of life and their cultural heritage, and provides for the protection and preservation of the environment.

One of the key features of the IFA is the creation of the Inuvialuit Settlement Region (ISR), which covers the western Arctic region of Canada. The ISR is divided into six community corporations, each of which is responsible for managing land and resources in its area.

The IFA also provides for the establishment of the Inuvialuit Regional Corporation (IRC), which is responsible for implementing the agreement and representing the Inuvialuit people in negotiations with the Canadian government and industry partners.

In addition to land and resource management, the IFA also includes provisions for economic development, education, health, and social welfare. The agreement requires the Canadian government to provide funding for these areas, as well as for the establishment of a wildlife management authority to protect and preserve the region`s wildlife.

Overall, the Inuvialuit Final Agreement represents a significant milestone in the history of Indigenous peoples` rights and land claims in Canada. It recognizes the Inuvialuit people`s traditional way of life and their cultural heritage, and provides for their greater control over their land and resources. It also ensures that the Inuvialuit people receive a fair share of the benefits derived from economic development in the region, and provides for the protection and preservation of the environment.

The United States-Il Free Trade Agreement: What You Need to Know

The United States-Il Free Trade Agreement, also known as the US-IL FTA, is a trade agreement between the United States and Israel that was signed in 1985. The agreement is aimed at promoting trade and economic cooperation between the two countries by eliminating trade barriers and reducing tariffs on certain goods and services.

The US-IL FTA covers a wide range of trade issues, including agriculture, intellectual property, services, and investment. The agreement has been instrumental in promoting trade between the two countries, with the total value of US-Israeli trade increasing from $8 billion in 1985 to over $50 billion in 2019.

One of the key benefits of the US-IL FTA is the reduction of tariffs on goods and services traded between the two countries. Under the agreement, the majority of tariffs on agricultural products, consumer goods, and industrial products have been eliminated. This has made it easier for businesses in both countries to access each other’s markets and has resulted in increased trade and investment.

The US-IL FTA also includes provisions for protecting intellectual property, such as patents, trademarks, and copyrights. These protections help to promote innovation and encourage businesses to invest in research and development.

Additionally, the agreement includes measures to improve cooperation on labor and environmental issues. This includes provisions for protecting workers’ rights and ensuring that environmental standards are met in the production of goods and services.

Overall, the US-IL FTA has been a success for both countries, promoting increased trade and investment and fostering greater economic cooperation. As the two countries continue to work together, it is likely that the benefits of the agreement will continue to grow.