GST on Work Contract with Railway

Hi,

The work contract service with Indian Railway is under B2B or B2C, the department deducted TDS on GST 2% or (1%+1%), can any one explain ? 

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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications for work contracts with Indian Railways. It addresses whether these transactions are considered Business-to-Business (B2B) or Business-to-Consumer (B2C). The conversation also delves into Tax Deducted at Source (TDS) on GST, specifically the 2% deduction, and explains how input tax credit (ITC) can be claimed in B2B scenarios.

In a contract of construction,may raw material is taxable,may land is taxable, may manpower is taxable, besides whole contract is coming under tds by compatent authority @ 2% (1.50%+0.75%) and contract gst @ 12% for compasite service and 18% in other cases.
If you as a works contractor and railways , both are registered under GST then it's B2B translation .
Itc may claim through b2b same level transaction only.

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