There is vagueness on an aspect where the end customer is a GST registered customer (say PWD in my case). Can PWD hold back 12% amount on the bill on account of GST in the final bill and release the remaining amount to the Contractor? Can PWD stipulate that the 12% amount which is withheld with PWD will be refunded when the Contractor produces proof of remittance of 12% amount to Govt. as GST?  

What stands guarantee that Contractor will remit 12% as GST on account of payment by ISRO towards the same?

Sir, if labour is not registered under GST, who is responsible for paying gst for that please explain with example..please keep in mind that i am bcom student and has recently started taking care of business with family and we are PWD contractor at assam? Secondly please tell me that our work is going on in remote area and need to pay labour/staff/materials wage/salary/cost, if i transfer amount to their account what should i write in books... what proof should i keep.. please treat me as new born child in this matter.

@ Ankit Joshi........."if labour is not registered under GST, who is responsible for paying gst for that please explain with example."

In that case service receiver is liable to pay GST under RCM.

For payment of labour charges....... you will be required to raise self invoice with details of the labour charges paid (if total exceeds Rs. 5,000/- per day) and pay GST over it 

@ Melco: All the registered dealer will have to maintain proper records of accounts with taxes paid under GST........ otherwise interest and penalty liability would be very heavy alongwith prosecution proceedings........ So, the payment retention of PWD is bit extra coercion !!

Otherwise also, there is monthly reporting under GST along with tax payment and filing GSTR, so by the type payment released by PWD..... the contractor would have already paid tax over it.

'PWD' full form Public Works Department (state &/or central govenment undertaking)

All the Bills of Government contractor are finalized & made by PWD dept. (only estimates are provided by contractor). 

After GST, PWD dept. is not mention anything (GST/VAT) in bills of old contracts. Therefore, there is no tax charged by contractor towards the supply amount.

Now, I have followeing queries towards GST Implimentation - ‎

‎If GST is applicable on prior contract, then what should I do.. when Govt. Dept not paid me any GST amount on such contracts ?
 

Check your contracts, if any clausespecifies taxes to be levied extra, you can demand. Otherwise you will have to pay from your own sources.

There are so many payments received against same bond and noted that in some payment GST had deducted but in some payment GST not deducted by the PWD Depatment. so what i do ?

Settle the issue with PWD as per your terms of contract.

Thank you Sir

Thank you Sir