Under the Goods and Services Tax in India, rate on works contract depends mainly upon the nature of services provided. Most of the services under works contracts are taxed either @ 12% or @ 18%.
If it’s a works contract which the service provider is undertaking (he will be considered as the supplier) for a private party (who will be considered as the recipient) the GST rate will be levied @ 18%.
But, if a service provider is doing something for the Government and the said work is neither for profit nor for further commercial use, then the GST rate will be levied @ 12%.