What is GST Rate ?

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The standard GST rate for work contracts supplied to government agencies, such as providing and fixing high masts, is generally 12%. While electrical goods might typically attract an 18% GST rate, for these specific government contracts, the combined CGST and SGST amounts to 12%. Subcontractors often find that the GST paid on materials purchased can be offset against the Input Tax Credit (ITC) available on their output supply to the main contractor.

Pankaj

Pankaj (Querist)
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06 October 2021 What is GST Rate in the case of Government Electric Contract or Sub Contract ?
Work Description : Providing & Fixing High Mast .
Please reply.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 October 2021 12% total of CGST+ SGST...

Pankaj

Pankaj (Querist)
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06 October 2021 Sir But mostly I purchases electrical goods with 18 %. Even GST Rate will be 12 % ?.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 October 2021 For works contract supply to Governmental agencies, the GST rate is 12% only.
But it has been generally noted that the GST paid by sub contractor, during purchase of material almost gets utilized against the ITC available in output supply to main contractor.

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