The Central Board of Indirect Taxes and Customs (CBIC), vide Notification No. 03/2022–Central Tax (Rate) dated 13 July 2022, has revised the GST rate applicable to works contracts relating to roads and bridges executed under the Pradhan Mantri Gram Sadak Yojana (PMGSY).
Prior to this amendment, PMGSY works were taxable at 12% GST. Pursuant to the substitution of the relevant entry in Notification No. 11/2017–Central Tax (Rate), such works are now taxable at 18% GST (9% CGST + 9% SGST).
The revised rate is effective from 18 July 2022. The Ministry of Rural Development has also issued a clarification letter to States and Union Territories for implementation of the revised GST rate on PMGSY works.
Key points:
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GST rate on PMGSY road and bridge works increased from 12% to 18%
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Applicable with effect from 18.07.2022
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Change implemented through Notification No. 03/2022–CT(R)
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Relevant for contractors executing PMGSY infrastructure projects
Official Notification:
CBIC Notification No. 03/2022–Central Tax (Rate) dated 13 July 2022