Contractor RA bill procedure

This query is : Resolved

Somnath (Querist)
Follow

05 March 2025 Dear All

Plz confirm , whether following RA bill procedure is correct or not for contractor from GST bill to bill reconciliation point of view ?

Ra Bill -1 (GST Bill)

Total Basic contract RA bill valaue Rs 10,000/-
Less : Retention Amount Rs 1,000/- (Not claimed by contractor as per contract terms
for security,safety & deduction clause)
Net Bill Value Rs 9,000/-
GST 18 % on Net value Rs 1,620/-
Total bill value for GSTR-1 Rs10,620/-

Final Ra Bill (GST Bill)

Total Basic contract Rs 1,000/-
(Balance Pending retention Amt)
GST 18 % on Net value Rs 180/-
Total bill value for GSTR-1 Rs 1,180/-

Only In above cases , GSTR-1 (Contractor) & GSTR2B (Contractee) will match properly with out dispute or reconciliation.

Regards

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

12 August 2025 Your current procedure for RA bills — billing GST on net contract value excluding retention initially and billing retention with GST later in the final bill — is correct and compliant with GST norms and facilitates smooth reconciliation.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now