[By Shaleen Shah (Partner), VNCA]
The States derive the power to levy salestax or VAT on indivisible works contract through Article 366(29A)(b) added by the 46th Amendment to the Constitution to cover ‘transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract’. Under Gujarat VAT laws, the State Government has notified various types of works which will be deemed to be “works contracts