Q: Works contract is to be treated as supply or service?
Answer : Supply of works contract as defined in section 2(119) of CGST Act, 2017 is supply of service.
As per section 2(119) of CGST Act, 2017 “works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;
Thus work contract is defined under GST only in relation to immovable property