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

Consolidated tax invoice allowed for small B2C supplies where recipient is unregistered and declines an invoice.
Painting services are classed under the works contract/painting service SAC and attract the specified GST rate. A registered supplier may issue a consolidated tax invoice at the close of each day only where the recipient is an unregistered person, each individual supply meets the low value threshold and the recipient does not require an invoice; otherwise consolidated invoicing is not permitted and standard tax invoice requirements apply.