GST Rate Applicable as on 31-03-2022 Works contract (Road Work) to Govt. Entity

[sacheen Patil]

Hello Sir/Madam

What is the GST rate applicable as on 31-03-2022 for Works contract from Govt. Entity.

scenario 1 & 2 as below

1) Road Work not for general public use i.e. service road besides canal.

2) Road Work for general public use i.e. service road besides canal for the use of farmers

Thank you.

AI Summary

GST Rate on Government Road Construction Contracts: 18% for All Roads, Including Service Roads for Irrigation Projects. A query was raised regarding the applicable GST rate on works contracts for road construction by a government entity as of March 31, 2022. Two scenarios were considered: roads not for public use and roads for public use. Responses indicated that roads are generally taxed similarly, regardless of public access. The GST rate was clarified as 18% for services to government entities, with specific conditions under the Central Goods and Services Tax Act, 2017. Some experts argued that service roads linked to irrigation projects are not for public use and fall under the irrigation department's jurisdiction, affecting tax applicability.