How to Quote with GST for Indian Tenders

Including GST correctly in your tender quote is essential. Here’s how to prepare a compliant, competitive bid.

Cost Breakdown: What Goes Into Base Cost

Your base cost typically includes:

Material (M)

• Raw materials and supplies
• Proportions, bulkage, wastage, breakage
• Current market rates for the location

Labour (L)

• Skilled and unskilled labour
• Output per hour or day
• Prevailing rates in the vicinity of the site

Plant and Equipment (P)

• Machinery and equipment needed
• Hire charges or depreciation
• Output and productivity norms

Overhead and Indirect Costs

• Site establishment, supervision, utilities
• General administration

Total Cost (TC) = Direct Cost (DC) + Indirect Cost (IC)

Rate Analysis Approaches

Contractors use different methods to build up rates:

• Operational estimating—Activity-based, by operation or task
• Unit rate estimating—Per unit of measurement (m², m³, etc.)
• Combined—Mix of operational and unit rate depending on the item

Choose the approach that matches the tender’s BOQ format and your data.

Steps to Quote with GST

1. Determine base cost—Material + labour + plant + overhead
2. Add markup—Profit, contingency, risk (typically 1–20% of cost; see sector pages for norms)
3. Apply GST slab—0%, 5%, 12%, 18%, or 28% per HSN/SAC
4. State GST separately—If the tender requires a GST breakdown (CGST+SGST or IGST)
5. Include TDS—If applicable, factor 194C (2%) or 194J (1%) in net receivable

Use our Bid Price Calculator to compute cost + markup + GST + TDS.

GST Slabs (Common)

• 0%—Exempt items (e.g. some agricultural products)
• 5%—Transport, some essential goods
• 12%—Construction, works contracts, processed foods
• 18%—Most services, IT, general goods
• 28%—Luxury items, sin goods

Check CBIC and the tender document for the exact classification.