GST on Works Contract Service provided to Government Authorities

[Guest]

Hello

We provide works contract services. rate of GST on the same is 18%.

But is it same if we provide the service to Government Authorities (Government of India,Minsitry of Defence (R&D) ?

Previously we were exempted from service tax.

please help.

[KASTURI SETHI]

Now no exemption is available. There is a difference between both. Government Authority is not fully Govt. e.g. Housing Board, HUDA, DDA etc. Ministry of Defence (R & D) is fully Govt.

[Himansu Sekhar]

Now there is no exemption.

[Guest]

ok. but as per the GST council meeting held on 5.8.17, rate of GST for state & central works contract, is reduced to 12%? has the notification available for the same?

AI Summary

GST on works contract: no general exemption for government clients; query on reduced rate pending notification. Works contract services are subject to GST with suppliers no longer enjoying prior service-tax exemptions when contracting with government-related entities; contributors stress that no general exemption applies under GST and distinguish fully government departments from statutory or local bodies. A queried reduction in rate for state and central works contracts was mentioned from a GST Council meeting, but no notification or definitive rate change was provided in the discussion.