Question ID :
33795
GST
A developer engages various contractors for putting up the Building.
A percentage of contractor’s Bill is kept as “retention money” which will be paid after long duration. Similarly some portion of Bill is not paid and kept as “hold” money for defective work which will be paid after defect is set right
Both the above could be outstanding for more than 180 days.
Posted by
Ethirajan
on
Sep 03, 2018
Filed Under
GST
Unpaid portion of approved invoice amount is liable for reversal of credit under rule 37. Unapproved portion of work done will not attract reversal of any credit as no tax would have been paid by contractor yet.
In case amount is billed but work done is rejected (partly), it requires credit note from contractor (if rejection accepted) and credit availed must be reduced to extent of credit note issued by contractor. And if credit note not issued, credit must be availed only to extent of services received by Developer
Posted by
CA. JATIN CHRISTOPHER A on
Sep 05, 2018