Understanding the concept and transactional nature for undertaking the supply with execution of work “With In The Premises Of Customer Or At Their Project/ Work Site”

Every one should understand the transactional nature related to execution of work with material supply at the customers / buyers works spot;

Q.1  If the premises / work site not registered under GST Act.

Either it should be registered by the customer as their additional place or it may treated or it has to be registered as work / project site of the supplier on the basis of acceptance of work order.

Q.2 If work place registered and covered under the provision of GST Act by the customer:

 a. The material purchased by the supplier against this work / project may directly delivered to the customers work site by availing the Tax Credit

b. Each and every materials delivered to the work site must be covered by the RA bill which is serially numbered in respect of the specific project and reported to discharge the tax there on.

c. All the materials delivered to the work site will be treated as supply till the closure of tax invoice on completion of project.

 d. On issuance of final invoice, the unused balance materials may get reversed by issuing the credit note.

 e. The net tax liability against the final bill may derived by considering the RA bills which was declared and reported in earlier returns.

Q.3  If the work / project site treated or registered by the supplier on acceptance of work order:

 a. The material purchased by the supplier against this work / project may directly delivered to the work site by availing the Tax Credit

b. Each and every materials delivered to the work site must be recorded in the stock register.

c. All the materials delivered to the work site will be treated as own stock till the closure of tax invoice on completion of project.

d. On receipt of part payment related to the work / project should be reported to discharge the tax on receipt basis.

e. On issuance of final invoice, the unused balance materials may moved by generating the way bill to their registered place.

f. The net tax liability against the final bill may derived by considering the part payment received which was declared and reported in earlier returns.

M.A.Madasamy
Sales Tax Consultant
Mobile: 09444016050

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One response to “Understanding the concept and transactional nature for undertaking the supply with execution of work “With In The Premises Of Customer Or At Their Project/ Work Site””

  1. Pankaj Kumar Sharma says:

    Sir, very good return article.
    Where Customer is not registered under GST:
    Kindly clarify how to registere/declare as work project site as additional place of business in same state or another state under GST.

    Is there any form for reporting the same.

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