GST impact on works contracts: adjustment in RA bill certification
CPWD Circular (2023)
Open the sourceWhat the circular says
CPWD issued guidance to its engineers on how GST applies to works contract payments under CPWD contracts. The circular clarifies that GST at 12% (for government contracts) is to be shown separately on RA bills, that input tax credit is not available to CPWD as a government body, and that contractors must provide GST-compliant tax invoices for each RA bill submission. Errors in GST invoicing delay payment certification.
Contractor action
Ensure your GST invoices on CPWD projects are in the correct format: GSTIN of both parties, HSN code for works contracts (9954), correct tax head (IGST for inter-state, CGST+SGST for intra-state). A single invoice error delays the entire RA bill. Train your accounts team on CPWD-specific GST format before project start.
The circular changed the rules. CivilBolt flags it in the NIT.
When CPWD embeds or overrides a circular in a tender's Special Conditions, CivilBolt surfaces the delta. Your contracts team sees exactly where the SCC departs from the standard GCC before you price the bid.