GST on MGNREGS
This query is : Resolved
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
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.
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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