Provide an illustration of reconciliation of turnover arising in FORM GSTR-9C due to the valuation provisions Print

Created by: WIRC-GST Helpdesk .

Modified on: Thu, 13 Jun, 2019 at 6:55 PM

A suitable illustration can be taken in the case of construction contracts wherein the contractor is given a contract by a developer for construction of building and he is responsible for the procurement of all the materials required for such construction. However, the developer issues cement free of cost to such contractor in the given case.

Treatment in Books of:

Contractor: No Entry

Developer: Procurement of cement will be treated as an inward supply of cement and the issuance of the cement to contractor will form part of the cost of goods supplied.

Treatment for GST:

Contractor: Add the value of cement so received for the computation of GST

Developer: Consider the supply of cement as an outward supply. The contractor’s invoice (including cement) is an inward supply for construction.

Wirc-gst is the author of this solution article.

Did you find it helpful? Yes No

Provide an illustration of reconciliation of turnover arising in FORM GSTR-9C due to the valuation provisions Print

Treatment in Books of:

Treatment for GST:

Related Articles