Manpower supply - GST on deduction amount

This query is : Resolved

kathir (Querist)
Follow

23 October 2019 Dear Expert,

We have received manpower service from A ltd and our payment terms is 30days. but vendor has demand to pay within 10days. so we have changed our contract payment term to pay within 10days and deduct 1% amount in the bill value. E.x Basic value 1000000 and GST 180000 total 1180000. but payment to the vendor is 1168200 after deducted 1% amount ( 11800).

My doubt is, We should raise any debit note to the vendor for that 1% amount deduction (Rs 118000 ).? Shall we avail ITC rs 180000.?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
Follow

23 October 2019 Ask the vendor to raise Credit Note for the deduction amount and GST. Similarly you have to tale credit only for the basic amount less deducted value and no for the whole basic amount

kathir

kathir (Querist)
Follow

24 October 2019 Thanks sundararajan,
As per our mutual concern, Vendor only bear that 1% loss due to early payment received and nothing impact in GST value however the vendor has mentioned invoice value 1000000 & GST value rs 180000 in GSTR01 and its same has been reflected in GSTR 2A. So we have availed ITC rs 180000. In this kind of situation credit note from vendor is required.? or not required.?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
Follow

24 October 2019 If gross amount is reflected in GSTR 2 A ,then there is no issue in GST . But in accounting aspect, credit note for deduction amount without GST is required for accounting of deduction amount. other wise you have to raise Debit note and that should be accepted by the vendor.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RAJ SANKLECHA

CA. Urmila Mahalwal

Amogh Gokhale

DHRUV PATEL

THOMAS JOHN

Subscribe Now

Manpower supply - GST on deduction amount

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA