gst on works contracts

[giri gattupalli]

respected sir,

where payment to a works contractor made in parts for a ongoing huge works ,payment of GST not made to contractor along with part payment. in this situation whether there is liability to pay gst with contractor on partpayment or he can wait for realease of gst by concern contractee department.please give your valuable opinion.

thank you sir

AI Summary

GST liability arises on part payments; supplier must invoice and remit tax even if recipient withholds.
The supplier must issue an invoice and is statutorily liable to deposit GST with the government even if the contractee withholds the GST portion of a part payment; for continuous or staged supplies, part-payments linked to the works trigger the supplier's obligation to account for GST upon receipt of consideration.