Goods and Service Tax

[Ethirajan Parthasarathy]

A developer engages various contractors for putting up the Building.

A percentage of contractor’s Bill is kept as “retention money” which will be paid after long duration. Similarly some portion of Bill is not paid and kept as “hold” money for defective work which will be paid after defect is set right

Both the above could be outstanding for more than 180 days.

[DR.MARIAPPAN GOVINDARAJAN]

OK. What is your query?

AI Summary

GST on withheld contractor payments questioned due to long-term retention and defect-related holds affecting tax timing and incidence. Whether GST arises on amounts withheld by a developer as retention money or retained for defective work when such sums remain outstanding for an extended period, focusing on the timing and incidence of tax and whether withheld sums constitute consideration at billing, on receipt, or upon eventual payment or forfeiture.