How supply of goods and work contract differs bcoz for both different rate is there 18 and 12

This discussion clarifies the distinction between supply of goods and work contracts for GST purposes. A work contract involves both goods and labour, falling under SAC codes and typically attracting a GST rate of 18% (recently changed from 12%). A supply of goods contract, however, involves only the provision of goods, uses HSN codes, and generally follows the GST rate applicable to the goods themselves. The user's experience with a 12% rate for work contracts and 18% for supply contracts in state PWD needs further clarification on the specific GST regulations.