GST Rate for Government Contract

GST Rate for Government Contract 12% or 18% ?

1) Government Department or Local Authority( Grampanchayat,Nagar PanchaPanchayat Samiti,Zilha Parishad)

2)  Government Entity and Government Authority

 

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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) rate applicable to government contracts. It explains that from July 18, 2022, all works contract services provided to government departments and local authorities are subject to an 18% GST rate. Previously, some works for government entities and authorities fell under the 12% rate, but this has also been revised to 18% since January 1, 2022.

From 01/01/2022 works executed to Government entity and Government authority, previously which are falling in 12% GST rate are bring to 18% Rate.

From 18/07/2022 all Works Contract services provided to Government Departments, Local Authorities are also brought under 18% Rate. 

GST 18persent

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