GST rate on works contract by zila Panchayat

This discussion clarifies the Goods and Services Tax (GST) rate applicable to works contracts awarded by Zila Panchayats, such as for road and sewer construction. The consensus is that the applicable GST rate is 12%, as Zila Panchayats are considered Local Authorities. It also touches upon the eligibility to claim Input Tax Credit (ITC) on materials purchased for such works, subject to specific exclusions.