sir,a client who is a works contractor received a work order in vat period but amount received after july 2017.
show cause notice is received by gst department and and an apeal to be made to gst officer.kindly provide answer for this reason what i will write in my appeal.
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Vat bill amount received after gst applicability
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Quick Summary
To contest the Show Cause Notice, you must prove through audited records what portion of the work was executed and eligible for taxation under the pre-GST regime. Payments received for work physically executed after July 1, 2017, are likely to attract GST, whereas payments for work physically executed before that date should be defended as being covered by the erstwhile VAT/Service Tax laws. You may want to consult with a tax professional to perform a detailed audit of the work progress to prepare a robust factual defense.
Summary: For works contracts spanning the July 2017 GST rollout, the key is the physical execution date. Work completed before July 1, 2017, is generally taxable under the old VAT/Service Tax regime (per Section 142(11) of the CGST Act), while work executed after that date is subject to GST. Your appeal should provide audited documentation bifurcating the work completion timeline to clarify which portions are subject to which tax regime.
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