Third party payment

[MEHUL SHAH]

I would like to know about third party payment for the goods received.

Example: I have received the goods & i would like to instruct one of my client to pay to the said supplier on behalf of me to adjust the receivable from my client, is it possible in GST. I usually do this before GST.

Thank you

Mehul Shah

[YAGAY andSUN]

yes book adjustments are also allowed.

AI Summary

Third party payment: book adjustments permitted under GST to allow a client to pay a supplier on behalf of a recipient. Third party payment under GST: arrangements where a client pays a supplier on the recipient's behalf are permissible as book adjustments, enabling the supplier invoice to be discharged by the client and the recipient to offset that payment against its receivable from the client, with appropriate documentary and accounting entries to reflect the payment and receivable adjustment in GST records.