what is Gst Rates on government contract 5 or 12 plz guide me
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Quick Summary
The GST rate applicable to government contracts can vary, typically being 12% but sometimes 5%. The specific rate often depends on the nature of the work, such as whether it involves significant earthwork (5% if 75% or more) or is predominantly for business/commerce (18%). It's important to consult relevant notifications and understand that Input Tax Credit (ITC) availability is generally not restricted beyond Section 17(5) of the GST Act.
1. 18% if enduse is predominantly for the purpose of Business or commerce or Industry. 2. 5% if there is 75% and above earth work in total work. 3. 12% for other than above
There is no any restriction on availing ITC other than Section 17(5). you
you may also refer Notification No.11/2017 Central Tax - Rate and further amendments there on.
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