RA Bills in case of contractor

Others 2622 views 4 replies

RRR Fintech Solutions LLP

3 Points Joined April 2023

My Client is a Contractor and regularly submits RA bills to Govt Authorities. These RA bills includes GST as well. Post agreement with agencies, he raises Final Tax Invoice with GST and mention RA/Eway bill references in final Tax Invoice. Guidance required on below points:

1 - Whether RA bills should be part of GSTR1 or Final Tax Invoice ? If RA bills to be part of GSTR 1, then how Final tax invoice should be accounted for ?

2- If there are Open RA invoices at year end where final tax Invoices have not been raised, should we book revenue on these RA bills as Unbilled revenue (accrual) only for Income piece or RA bill should be accounted for with GST amount as at 31st March ?

Please help !!

CA Amit Goel

Replies (4)

CA Rakesh Ishi

Working at Private Company

8637 Points Joined December 2011

The GST component of the revenue should not be recognized until the Final Tax Invoice is raised. Once the Final Tax Invoice is raised, the revenue and GST should be recognized in the month in which it is raised and should be included in the GSTR-1 return for that month.

RA bills should be included in the GSTR-1 returns in the month in which they are raised, and Final Tax Invoices should be raised separately with reference to the RA/E-way bill.

The Final Tax Invoices should also be included in the GSTR-1 return of the month in which they are raised.

RRR Fintech Solutions LLP

3 Points Joined April 2023

This seems to be contradictory:

If I raised RA bill first along with e-way bill and show it in GSTR1 as well, then why will I show final bill again in GSTR1 ? This will be duplicate entry and tax payment as well. Please correct me if my understading is not correct.

Regards,

CA Amit Goel

NARENDRA

ACCOUNTS MANAGER

2193 Points Joined December 2012

I think about the time of making R.A.bill, & the format of R.A.bill where they put full amount & then less the previous R.A.bills amount. I think so , not sure .

Rajendra Prasad

Employee Private

1913 Points Joined July 2017

As per my knowledge and experience, when you have raised Ra Bill along with has to submit Tax Invoice / E-Invoice and has to report the same in GSTR 1. If there is any rectification has to generate Credit / Debit Note and same has to report in GSTR 1.