Querry for GST effect on sales

This query is : Resolved

Hiren J. Mandaliya (Querist)
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21 July 2021 sir,

I have one querry regarding GST and TDS effect in one case :

my company XYZ PVT LTD is engaged in the works contract business. they received one work order in the month of December, 2020 from ABC LTD.

They issued one service bill to ABC LTD in January 2021 on which ABC LTD has deducted tds and deposited and XYZ PVT LTD has shown as sales for reconciliation of sales in books and GST portal. Now some work is completed in the month of feb and march 2021 and xyz pvt ltd has not issued any bill to abc ltd. but abc ltd has deposited tds on that work completed and deposited without receiving invoice on provisional basis.

Now as per 26AS when we count sales, it is different then book and GST as we had not issued invoice but abc ltd has deducted and deposited the TDS on provisional basis hence sales is not reconciled.

now what is the best option to book this sales currently we booked sales on provisional basis as xyz pvt ltd has not issued invoice. Is it correct ? if not how can we reconcile books, GST sales and 26AS

CA Altamush Zafar

CA Altamush Zafar (Expert)
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25 July 2021 Since it is a continuous supply of service. You will have to raise invoice as per contract entered. It could be per month or on completion of event etc.

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