GST on Government cotracts
Posted By :
Gilayon /
Published on :
22-Nov-2017 03:23 PM /
View :
999 /
Comment :
1
Services provided to Government are not exempt under GST. Old tenders which were executed under Service tax regime had no service tax element in the contract amount. The contract is getting completed in the GST Regime. As per practice the invoice is prepared by the respective State Government. The State Government has not shown the GST element in it.Service provider being a GST holder has to pay 18% GST on services provided but the state Govt. is not providing the same, in such a situation how should the Service provider deal with it?
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Dear Gilayon Jee,
As per the facts stated in query, It seems that contract price is inclusive of GST.