GSt Rates on government contract

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.