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GST Rate on Works Contracts

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R Hiremath

articleship

168 Points Posted on 27 April 2022

Sir,
I have query I have done some Government Work & agreement for the same was done prior to 01.01.2022 and govt has provided 12% gst on work. Since govt changed to 18% and
Now my question is what should I pay to govt 12% or 18% ?

Replies (4)

Quick Summary

This discussion addresses the confusion surrounding GST rates applicable to works contracts, specifically whether to charge 12% or 18%. The consensus suggests the applicable rate depends on factors like the contract's award date, the specific government department involved, and the nature of the work. While Section 14 of the CGST Act is mentioned, it's advised to consult relevant notifications and potentially seek expert advice for a definitive answer.

kumar rajat

209 Points Posted on 27 April 2022

As per Govt notifications ( Some Govt sector rate 12% & Some govt sector 18%) You should check which Govt Department you are providing services to.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 28 April 2022

As per Section 14 of CGST Act need to raise the bill with 18% GST

sabyasachi mukherjee

Profession

19978 Points Posted on 28 April 2022

It may 12% or 18% . Sec 14 is a relevant section but nature of work order awarded must be known.

Rajendra Prasad

Employee Private

1142 Points Posted on 28 April 2022

Applicable rate of Works Contract is based on the Notification No.11/2017-Central Tax Rate and further amendments there on. And also it is based on the Contract Issuing department and nature of the contract. It is better to take expert opinion.