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Government work contract

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Suman GL

55 Points Posted on 17 October 2020

will GST amount included in contract amount
or
we need to pay 12% GST on contract amount.

Replies (4)

Quick Summary

This discussion clarifies the application of GST on government work contracts. GST at 12% is generally levied on the 'Transaction Value' as per the CGST Act 2017. For ongoing contracts awarded before GST implementation, clarification is sought on whether the GST amount should be included in the original contract sum. The consensus is that GST is payable on the payment received from the government, with any balance tax due upon final billing.

Shivam RC

Student

23693 Points Posted on 17 October 2020

GST @ 12% is applicable on Government Works Contract on the Transaction Value.

As per the Provision of Section 15(1) of the CGST Act 2017 [ Valuation Provision ], GST is levied on the "TRANSACTION VALUE". Transaction Value is calculated in accordance with the Provision of Section 15(2) & 15(3) of the CGST Act 2017.

Suman GL

55 Points Posted on 17 October 2020

Sir got government tender before GST now still work is going on ,now they are not giving GST amount.
so can I take GST amount included in contract amount