Contractor quoting for Govt Works Contract, Goods and Services Tax - GST

[MELVIN KOSHY]

Assume a Contractor who is quoting for a Govt. Dept Work.

An illustration on arriving at final rate of an item by a Contractor for an item to be quoted in price bid is as follows

BASIC PRICE (A)

Subtract DISCOUNT (B)

Add TRANSPORTATION (C)

Add PROFIT (D)

Add GST at 18% on (A+B+C+D) = (E)

TOTAL (F) = A+B+C+D+E

Amount quoted by Contractor in price bid = F

As we know, Govt. Dept will incur 12% towards GST on Works Contract offered by the Contractor. Whether Contractor will add 12% to the above value (F) and put his quote in the price bid?

Please give your thoughts

Posts / Replies

[KASTURI SETHI]

No. Any tax cannot charged twice for same supply of goods or services.