Enhancement of GST rate against Tax Invoice or any Receipt Voucher

Government of West Bengal
Finance Department
Audit Branch, Group T
(File No. 333279)

No. 3731-F(Y) Dated, 7th June, 2023


The issue of treatment of the value of works contracts awarded by the State Government Departments/ Local Authorities/ Statutory Bodies/ PSUs under Government of West Bengal due to enhancement of GST rate on works contract from 12% to 18% with effect from 18.07.2022 in terms of CGST Rate Notification No. 03/2022 – Central Tax (Rate) dated 13th July, 2022 and WBGST Rate Notification No. 1393-FT dated 23rd August, 2022 was explained in Memorandum No. 4691-F(Y) dated 22nd November, 2022.

However, queries have been raised by various Departments on the issue of ‘cost of inversion’ as referred to in the Memo No. ibid. It is hereby clarified that if any enhancement of the value of the contract is required due to change of GST rate from 12% to 18% with effect from 18.07.2022, the respective authority may ask for a self-declaration from the concerned contractor separately for each contract in the proforma as annexed herewith and take action accordingly.

Such enhancement will be applicable on that value of the contract for which Tax Invoice or any Receipt Voucher [under GST Act, 2017 read with Rule 46 and Rule 50 of the CGST/ WBGST Rules, 2017] is raised by the contractor on or after 18.07.2022 upon execution of the works or upon receipt of any advance.

Addl. Chief Secretary to the
Government of West Bengal

No. 3731-F dated 07.06.2023, Source

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