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Super Tradingcorpn

Super Tradingcorpn (Querist)
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21 May 2017 Is there any rate fixed of wct with government contracts in GST as I'm a govt contractor

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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22 May 2017 Its also 18%

Super Tradingcorpn

Super Tradingcorpn (Querist)
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24 May 2017 I asked about sales tax deducted on source in GST

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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03 August 2025 Got it — you’re asking about WCT (Works Contract Tax) or tax deducted at source on government contracts under GST.

Here’s the scoop:

Under GST, Works Contract Tax (WCT) as a separate tax has been subsumed. So, there is no separate WCT anymore.

Instead, GST applies on works contracts, usually at 18% (composite rate for works contract services) — but this depends on the state and type of contract.

Regarding TDS (Tax Deducted at Source) on government contracts:

Under GST, government authorities deduct GST TDS at 2% on the payment made to contractors (Section 51 of CGST Act).

This is not WCT but a GST TDS mechanism.

For sales tax deducted at source (TDS) under old VAT or sales tax regimes, that system was replaced by GST after July 2017.

Summary:

No WCT under GST.

GST charged @ 18% (or applicable rate) on works contract.

Government deducts 2% GST TDS on payments to contractors.

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