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Govt. works contract B2B or B2C

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Shinoj Davis

112 Points Posted on 21 September 2020

sir/ madam

Government works contracts,

Are B2B outward supply?.
or
Are B2C outward supply?

Thanks & Regards
Shinoj Davis

Replies (5)

Quick Summary

This discussion explores whether government works contracts are considered B2B or B2C outward supplies for GST purposes. Initially, it was suggested they are B2B, requiring a GSTIN. However, further clarification indicates that if the government entity isn't supplying goods or services further, it may not need GST registration, leading to B2C invoices. It's advised to check the contract for the government's GSTIN and follow the registration status for correct invoicing.

CA Sachin M Jain

CA | GST | Refunds | Advisory | Litigati

1463 Points Posted on 21 September 2020

Government works contracts are B2B.

You may ask for the GSTIN or may even find it on the work order.

Also check the Exemption notification for supplies to Government.

For further clarification contact CA SACHIN M JAIN
Mobile : 8097515447
WhatsApp : tinyurl.com/wCASMJ
Email : casachinmjain @ gmail.com
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Shinoj Davis

112 Points Posted on 21 September 2020

Thank you sir for your information, sir, i enter with tds gstn of govt authority, it's not accepted by the network.

Could I ask another GSTN?

thanks and regards
Shinoj Davis

Pankaj Rawat

GST Practitioner

55067 Points Posted on 22 September 2020

No it's not mandatory that work contract to Govt will be B2B supply.
if Govt is not supplying goods or services further is not liable to get Registered in GST . yes to deduct GST TDS , it's mandatory for govt to obtain Registration as GST Deductor .
So even if the govt concern is Registered as TDs (GST) Deductor then supplier will raise B2C invoice only .

Note : Plz go through the contract letter can find GSTN (as regular dealer) of Govt therein & can do the billing accordingly.