GST applicable for the work

GANESH BHAT (4 Points)

22 August 2020  

My father was honoured with government work of drilling borewells to farmers identified by state government and provide submersible pump sets along with pump house in the year 2018.

In the estimate of the work as well as in the final bill of the work there is no mentioning of gst which has to be paid and entire estimated work is the actual cost of work.

ex - If the estimated cost is 1 crore, for entire 1 crore the expenditures were provided in the estimate.

Starting from 2019, government started giving separate line entry as gst to be paid in the actual estimate and bill.

In this scenario, where the entire cost of estimate were actual expenditure of the work, why and how the gst has to be paid ? 

My say is if gst has to be paid for government work done, then there has to be separate line entry in the estimate for the gst amont and actual estimate of the work should include that amount as extra above the actual expenditure of the work.

Kindly let me know