Works Contract Service

[Kaustubh Karandikar]

XYZ Ltd. Are registered with GST and are in the business of manufacture of Paint. They will be buying other items such as putty/texture etc from outside market. XYZ had received a contract of painting of residential / commercial buildings. XYZ will be employing an outside painting contractor for the said painting. XYZ will be invoicing to the B2B / B2C as the case may be for this painting work. For invoicing in case of both B2B and B2C, SAC – 9954 (Works Contract Service – Painting Service) Rate – 18%. Is the above correct? In case of B2C contract, can XYZ issue a consolidated invoice at the month end or do they need to raise individual invoices? In either case, can XYZ create a dummy customer by name of “Retail Customer” and invoice to it as individuals have no traceability whatsoever, in terms of GST.

AI Summary

XYZ Ltd. can't use consolidated invoices for B2C transactions under SAC 9954 unless specific conditions are met. XYZ Ltd., a GST-registered paint manufacturer, is considering how to handle invoicing for painting services contracted to an external painting contractor. The company plans to invoice both B2B and B2C clients using SAC 9954 with an 18% GST rate. Queries were raised about the possibility of issuing consolidated invoices for B2C transactions and using a 'Retail Customer' for traceability. Responses indicated that consolidated invoicing is not allowed under forward charge except under specific conditions where the transaction value is below 200 and the recipient is unregistered and does not require an invoice.