GST Input Credit

Save Share

This query is : Resolved

Quick Summary

This discussion addresses a scenario where a subcontractor (B) purchased cement under the main contractor's (A) name to secure a lower rate for government road projects. The GST input credit appeared on A's GSTIN. The core question is how to correctly transfer this GST amount to the subcontractor B, especially since B directly paid the cement company. Further clarification is needed on the invoice details ('bill to' and 'ship to') to determine the best way to facilitate this transfer.

Venugopal

Venugopal (Querist)
Follow

03 August 2020 Sir

If "A" is a main contractor and "B" is a sub-contractor and "B" had purchased Cement in the name of "A" as the cement rate will be low if "B" purchases cement in the name of "A" as the work is government work i.e laying of CC Roads to Rural Villages".

Since "B" purchased cement in the name of ''A" GST input reflected on "A" GSTIN. Now how to transfer the GST amount to the subcontractor. Please clarify.

Note:- Payment made towards Purchase of Cement to Cement company directly by "B"