Question ID :
40451
Output Service without proper Tax invoice
Dear Sir
A firm is engage in the business of labour supply to his client by deploying manpower from contractor with predifined margin.
On the basis of record with client ( attendance record etc.), firm is raising the periodic Bills (GST TAX INVOICE)to his client and paid GST accordingly after taking the Input Tax Credit from his contractor.
In summary the business model is -
Input from Contractor + Own Margin = Output Service to Client
The query is
If the Firm is raise Output Service Bills without Input Service ( By way of proper Tax Invoice from Contractor) and recognise his revenue and to math the revenue estimated expenditure is also provided for the month and after receiving the actual Tax Invoice from ( after 1-2 months ) Contractor claim ITC.
For ex. In April Output Service Rs. 100 Lakhs, Input Nil
In June Output Service Nil , Input Rs. 80 Lakhs
Is there any violation of GST provision by following above practice ?
Whether Month to Month booking is mandatory under GST Law ?
Posted by
CA ANIL KUMAR SAH
on
Nov 04, 2019
Filed Under
GST
The time limit for issue of tax invoice is given under section 31(2) read with rule 47. Service invoice to be issued within 30 days. If this is violated then interest would attract.
Posted by
CA. SHILPI KATARIYA on
Nov 13, 2019
Answer ID :
80269
Any Services provided must be Invoiced within 30 days of completion of Service. Hence regular monthly billing becomes mandatory.
Posted by
Ashish Kumar Goyal on
Nov 27, 2019