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GST rate for Government contractor

21 October 2018

1. Sir, please let me know, What is the gst rate for government contracter.

2. Can the department, deduct gst @ (1% cgst & 1% sgst) of total pay amount, during payment from a registered contractor.

Waiting for your valuable suggestion.

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6 Replies

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 21 October 2018

1. usually its 12% But many services are also exempted
2. Yes , if the contract value exceeds 2.5lac

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Sujit Saha (243 Points)
Replied 22 October 2018

If so, then how the gst will reflect in the dealer's credit ledger, how it will be adjusted.
What will be the dealer's return filing procedure

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 22 October 2018

As per Section 52 & SOP on Cbec site
Govt is liable to deduct 2% TDS if the contract value exceeds 2.5 lac & TDS deducted will reflect in supplier cash ledger & same can be use to discharge output taxl liability or can claim refund by supplier

Vinod Babu (24191 Points)
Replied 22 October 2018

yes , gst rate for government work contract is 12%.
TDS will be deducted by department as told by Pankaj ji.

Sujit Saha (243 Points)
Replied 22 October 2018

Sir, I'm asking for gst,how it will be adjusted, that govt deducted from contractor payment. not for tds

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Libissa (Accountant) (319 Points)
Replied 22 October 2018

GST Rate for Govt Will be 12% [ 6+6 ]

GST Deducted form Government Will be Only 2% u have to show the turnover and pay the 12% GST in which u can take the Purchase ITC Bills if there is no excess of ITC Bills u have to pay the excess amount through Bank