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GST applicability

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This query is : Resolved

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This discussion clarifies GST applicability for contracts with Public Sector Undertakings (PSUs). It highlights the importance of checking the contract terms to determine if GST is included or excluded. Regardless, GST must be shown separately on RA bills and tax invoices, and the liability paid accordingly.

monika

monika (Querist)
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28 September 2020 My client is a contracts and has done many works contract with psu.
But there is not GST liability showing in their RA bill. So should we treat it as inclusive of GST or GST is to be paid by their own pocket

CA Mayur Todmal

CA Mayur Todmal (Expert)
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28 September 2020 Generally contract with municipality or other gov departments are inclusive of GST as per terms of contract.

Lekhraj sood

Lekhraj sood (Expert)
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28 September 2020 You have to see the contract with PSU - Is it inclusive of GST or excluding GST.
IN any case you have to show GST separately in RA bills/tax invoices and pay the GST liability.

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