QUERY REGARDING GOVERMENT WORKS CONTRACT GST RATE 18 % FROM 18TH JULY 2022

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This query is : Resolved

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This query addresses the GST rate change for government works contracts from 12% to 18%, effective from 18th July 2022. The main concern is how this impacts ongoing contracts that were initially priced at 12%. The discussion seeks clarification on whether existing contracts should be revised to the new 18% rate or if the old rate remains applicable. The consensus leans towards applying the new rate for all work performed after the effective date, regardless of the original contract terms.

Suresh S. Tejwani online

Suresh S. Tejwani online

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11 July 2022 Firm XYZ has a government contract in which gst was applicable at the rate of 12% and the contract is still in progress. Now as per the GST council Meeting 47 , the new rate applicable for government work contract is 18%

Then what about the old contract which was executed at the rate of 12% and margin was also not defined ? Whether the contract shall be revised @ 18 % ?
or
The new rate will be applicable for the new contract executed on or after 18 July 2022 and the old contract will be remain same ?