GST for government tenders — registration, invoicing and your bid price
Do you need GST to bid? How registration, inclusive vs exclusive pricing and input credit affect your tender.
5 min read · Free guide from Bidrove
Do you need GST registration?
- Most government tenders require a valid GSTIN — especially for supply of goods and many services.
- Even some below-threshold firms are asked for GST; read the tender's eligibility section.
- Register early — a GSTIN takes a few working days and can't be added at the last minute.
How GST affects your bid price
- Quote exactly as the tender asks — 'exclusive of GST' or 'inclusive of GST'. Mixing this up causes price disputes.
- If the tender wants prices exclusive of GST, the department pays GST on top — don't add it into your rate as well.
- L1 evaluation is usually on the total including taxes, so quote on the same basis as other bidders.
Input tax credit
- Registered firms can claim input tax credit on GST paid for materials — factor this into your real cost.
- Keep proper, correctly-coded GST invoices for everything you buy for the contract.
Common GST mistakes
- Quoting inclusive when the tender wanted exclusive (or vice-versa).
- Wrong HSN/SAC code on your invoice.
- Forgetting that some government supplies attract TDS under GST.
- GST rules and rates change — confirm the current position with a tax professional or the official GST portal.
Find tenders you can actually win
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