Module 6 of 6
Money and tax
GST on works, the deductions that come back and the ones that do not, and surviving the gap between bills.
The money side of a government works contract: how 18% GST applies to works contracts and whether your rate includes it, input tax credit, TDS and GST TDS as credits, cess and royalty as costs, and a working model of cash flow for a small contractor between the work order and the final bill.
Chapters
- 1GST on government works contractsHow GST applies to a works contract for a Karnataka government department: the 18% rate since July 2022, whether your quoted rate includes GST, how the department pays it, input tax credit on materials and machinery, invoicing each RA bill, and the returns a contractor files.6 min read
- 2TDS, GST TDS, cess and other deductionsEvery deduction a Karnataka department makes from a works bill, sorted into money that comes back (income tax TDS under 194C, GST TDS under section 51, security deposit) and money that does not (BOCW labour cess, royalty, department recoveries), with the rates, where to find the credits, and how to price for the rest.6 min read
- 3Cash flow: surviving between billsWhy profitable contracts still fail: the money out before the first bill, the deposits and credits held by the department, the delay in bill payment, and how to size the working capital for a work. With a worked example of a ₹50 lakh road over six months and the levers that shorten the gap.8 min read
Put it to work
Every live Karnataka tender, with the history the portal never shows.
Who won the last ones like it, at what discount, and the documents it asks for. Browse without an account; sign up when you want alerts.
Independent site, not a government one. Tender data is published by the Karnataka Public Procurement Portal. Source: kppp.karnataka.gov.in