GST on MGNREGS

This query is : Resolved

Radha Krishna Reddy Devagiri (Querist)
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13 February 2026 One of our clients completed the contact work under MGNREGS. The Executive Engineer deducted TDS @ 1% CGST & 1% SGST on the total value of the contract work, but paid GST @ 28% on Cement only (even though it is a contract work). What will be the GST structure on MGNREGS works

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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14 February 2026 MGNREGS contract work is treated as works contract service.

GST should be:

12% (6% CGST + 6% SGST) on total contract value.

28% on cement is applicable only if cement is supplied independently, not as part of works contract.

TDS @ 1% CGST + 1% SGST deduction by Executive Engineer is correct under GST-TDS provisions.

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