Providing output Service without Input Service

This query is : Resolved

CA Anil Sah (Querist)
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05 November 2019 A firm is engage in the business of labour supply to his client by deploying manpower from contractor with predifined margin. On the basis of record with client ( attendance record etc.), firm is raising the periodic Bills (GST TAX INVOICE)to his client and paid GST accordingly after taking the Input Tax Credit from his contractor. In summary the business model is -
Input from Contractor + Own Margin = Output
Service to Client
The query is
If the Firm is raise Output Service Bills without Input Service ( By way of proper Tax Invoice from Contractor) and recognise his revenue and to math the revenue estimated expenditure is also provided for the month and after receiving the actual Tax Invoice from ( after 1-2 months ) Contractor claim ITC.
For ex. In April Output Service Rs. 100 Lakhs, Input Nil In June Output Service Nil , Input Rs. 80 Lakhs.
1.Is there any violation of GST provision by following above practice ?
2.Whether Month to Month booking on back to back basis is mandatory under GST Law ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2019 Not mandatory in monthly ITC claim. But it's mandatory to raise tax invoice for out put service monthly.

CA Anil Sah

CA Anil Sah (Querist)
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06 November 2019 It mean without taking Input Tax Invoice, we can not raise Invoice for our Output Service

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 November 2019 You can raise invoice for out put service without considering input service. ITC on input service can be claimed upto next September.

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