will GST amount included in contract amount
or
we need to pay 12% GST on contract amount.
GST @ 12% is applicable on Government Works Contract on the Transaction Value.
As per the Provision of Section 15(1) of the CGST Act 2017 [ Valuation Provision ], GST is levied on the "TRANSACTION VALUE". Transaction Value is calculated in accordance with the Provision of Section 15(2) & 15(3) of the CGST Act 2017.
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