works contractor - gst component not given by department

[giri gattupalli]

respected sir,

one of my cleint is govt works contractor. and he provided civil works service to errigation department amounting to rs 1,00,00,000 (aprox) . during fy 2023-24 and taxable at 18%. and he has received part payment amounting to rs 60,00,000 only. and the balance is pending with dept due to some technical reasons. we have raised tax invoices against service provided, with showing gst component. and department issued payment memos for 60,00,000 and no gst is shown in payment memo and after enquiry we came to know that department deliberately not given gst amount aprox amounting to rs 10,00,000 .

i request you to guide me weather to show turnover in return and pay tax or not to show turnover till gst received from errigation depat.

thanking you

AI Summary

Works contract GST liability continues despite payment withholding; contract terms decide whether GST is inclusive or separate.
GST liability on a works contract supply arises from the taxable supply and the time of supply, not from receipt of payment. Where tax invoices have already been issued for civil works services, the corresponding turnover should be reported in GST returns and applicable GST discharged even if the department has withheld part of the payment or the GST component. The contract terms must be checked to determine whether the agreed value is inclusive or exclusive of GST.