What is the rate of GST applicable for providing Contract services?
Solution: Basically Contract services qualify for the definition of Works Contract Services under section 2(119) of the CGST Act, 2017 as it has elements of both provision of services and sale of goods. Government had bifurcated the work contract services basically into two broad heads for the purpose of deciding the rate of tax applicable which are
1. Non-Governmental Works contract services – GST rate applicable is 18% .
2. Governmental Works contract services – GST rate applicable is 12 %
Source Taxguru
