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Department contract work fully sub contract

Libissa (Accountant) (319 Points)

16 April 2019

My Friend is Taken Department Contract Work in My Name (GST ) For Rs. 2,00,00,000/- TDS & GST is Deducted in MY PAN & GST but i am not doing the work only work is taken in my name he is doing all the work purchase the bill in his name i will transfer the amount to his account when the amount is deposited from department i want to know i want to pay GST for this sub contract the work is back to back work. Friend is telling i will pay the GST For Department u just show the amount in exempted but i am not satisfied with his answer kindly help me

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Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 16 April 2019

You are doing wrong ,
since legally the contract is given on your PAN (GSTN) , then you are going to Issue the bill for same & liable to collect GST from Recepient & deposit the same .

Yes you can sub contract it your friend then he will raise a bill to you by charging GST which will be your inward supply & further you will raise bill to Recepient (Govt)

Note : you will collect & Deposit GST Bill raise to Recepient (Govt).

Your friend is liable collect & deposit GST for Bill raise to you

You can avail Input on Bill raise by your friend & your friend can avail input on his inwards supplies