The Ministry of Housing & Urban Affairs (MHUA) on March 30, 2026, issued the draft regarding the Revision in Methodology for Deduction of lncome Tax from Contractor's Bills.
The following has been stated namely: -
• The earlier OM has been modified, particularly revising the illustration for Income Tax deduction, along with GST and Labour Welfare Cess calculations in contractor payments.
• The revised example clarifies how to compute GST, Labour Welfare Cess (1%), and Income Tax (2%) deductions from the gross work value, leading to a recalculated net payment to the contractor.
• All CPWD units must strictly follow invoicing provisions under the Central Goods and Services Tax Act, 2017, ensuring proper B2B tax invoices and GST reporting.
• The comments may be submitted on email [email protected] within 30 davs
[Notification No. 158/SE (TAS)/GST/2026/74-4]
