Summary
CBIC has increased the GST rate on works contracts relating to roads and bridges executed under Pradhan Mantri Gram Sadak Yojana (PMGSY) from 12% to 18% with effect from 18 July 2022, vide Notification No. 03/2022–Central Tax (Rate). The Ministry of Rural Development has issued a clarification letter to States/UTs for implementation of the revised rate.
Official notification issued by the Central Board of Indirect Taxes and Customs revising GST rate on PMGSY road and bridge works. The accompanying letter issued by the Ministry of Rural Development provides implementation guidance to States and Union Territories.