TaxTMI 
TaxTMI 
A contract work of the government is allotted to a contractor, for which the rate of GST is 12%. The contractor has subcontracted the work to the subcontractor.
What is the rate of tax for contract work done by the sub-contractor whether 18% or 12%?
RATE OF GST FOR SUB CONTRACT OF GOVERNMENT CONTRACT ALLOTED TO CONTRACTOR
17 Dec 2021 
5 Replies 
25790 Views Asked by
GST on subcontracting: subcontractor supplies attract the standard tax rate; reduced rates apply only for specified works where notified.
Subcontractor services to a contractor under a government works contract are generally taxable at the standard GST rate as supplies to the contractor, with the contractor able to claim input tax credit; concessional rates apply only for specified works where notifications/amendments explicitly extend the reduced rate to subcontractors, subject to conditions and effective dates, and must be confirmed by relevant circulars, notifications, or advance rulings. (AI Summary)
Subcontractor services to a contractor under a government works contract are generally taxable at the standard GST rate as supplies to the contractor, with the contractor able to claim input tax credit; concessional rates apply only for specified works where notifications/amendments explicitly extend the reduced rate to subcontractors, subject to conditions and effective dates, and must be confirmed by relevant circulars, notifications, or advance rulings. (AI Summary)