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In this instance the main contractor did not charge GST and the subcontractor did. The main contractor got a bit of a shock when the subbieâs invoice came with the agreed upon hourly rate but then added 10% for GST.I guess the lesson here is ânever assumeâ.n this instance the main contractor did not charge GST and the subcontractor did. The main contractor got a bit of a shock when the subbieâs invoice came with the agreed upon hourly rate but then added 10% for GST.
Flying to become expensive, as service tax will be replaced by GST. Service tax on fares currently range between 6% and 9% (depending on the class of travel). With GST, the rate will surpass 15%, if not 18%, effectively doubling the tax rate. The effective rate of tax for cement companies is now 25%. If GST rates are fixed at 18-20% then the overall tax incidence will be lower GST IS expected to lead to savings in transportation cost, which currently comprises up to 20-25% of total revenue.