Government payments

This discussion clarifies whether GST is applicable on payments received from government bodies. If a government department is paying you for works contract services exceeding £2.5 lakh, they are likely to deduct GST at source (GST-TDS) as per Section 51 of the CGST Act. You will receive a TDS certificate. The query also touches upon whether deducted taxes like TDS, Labour Cess, and Income Tax should be included when calculating the taxable value for GST.