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Respected Sir, my client registered under GST and engaged in construction work of check dam for government. He raised Bill to Govt. As the price of work order is fixed so my question is that should he charge GST on value of work order or he can treat such price of work order inclusive of GST? And what is the GST rate to be charged that is 12% or 18%?

Respected Sir, my client registered under GST and engaged in construction work of check dam for government. He raised Bill to Govt.  As the price of work order is fixed so my question is that should he charge GST on value of work order or he can treat such price of work order inclusive of GST? And what is the GST rate to be charged that is 12% or 18%?

Reply

Government generally enters into all inclusive contracts where the price quoted is inclusive of all taxes. So, your client should treat such amount as inclusive of GST.

And GST rate is 12% for such construction work.

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