Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
D. Forum
What's New


Discussions Forum
Home Forum Goods and Services Tax - GST This
A Public Forum.
Anyone can participate to share knowledge.
We acknowledge the contributions of Experts/ Authors.

Submit new Issue / Query

← Previous Next →

Input Reversal, Goods and Services Tax - GST

Issue Id: - 114121
Dated: 5-9-2018
By:- Ethirajan Parthasarathy
Input Reversal

  • Contents
  1. 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.

Does it mean the developer has to reverse the Input Credit already availed on above two components.

Post Reply

Posts / Replies

Showing Replies 1 to 1 of 1 Records

1 Dated: 5-9-2018
By:- Yash Jain


Please pay the GST portion of retention to contractor and take an acknowledgement receipt from him

Reason.: The purpose of GST act, is seamless "movement of credit" and not consideration. The act does not allow benefit of arbitrage were in we take ITC and on other end we do not pay.

Hence, pay only gst portion (reverse work on outstanding retention) and take individual RAB bill wise ack. Mention or define the term consideration in work order by station that gst amount will be paid on retention money which will be considered as discharge of consideration to extent of bill.

Hence no need to reverse ITC on said. Moreover if yourself is a sizeable entity , go for advance ruling.(from gst authority) It will cost you only ₹ 10000/-, but will provide you with definite order and will eliminate litigation on account of non reversal, if any.



Post Reply

← Previous Next →

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map || ||