Impact on GST

Page no : 2

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 11 October 2017

the party asked to pay to other party on behalf of him

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(Guest)

GST won't bother about you received payment

who says gstn officer will check each and every income

of ur business and verify weather it is concern with gst or not

(Guest)

and at the time of closing ur books

hw will u treate for parties whose bill not

book or not received here u pay the party

and yet to book the bill (sales or purchase whatever applicable)

AkhilDeep R (127 Points)
Replied 11 October 2017

why will you make a payment to other party if u dnt have any dealings with them , u will only pay them when ur supplier tells u to make a payment .
no where gst is affected here , it's only Contra transactions , that y get a confirmation from ur supplier who told you to make a payment to other party.

(Guest)

what gst rules says against advance received

here u pays but after all it is treate as advance

received for the party u pays

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AkhilDeep R (127 Points)
Replied 11 October 2017

Dear Samir ,

please read the question posted by Mr.Nilesh .

here ur not making any advance payment for purchase , u r making payment to a party on instructions given by ur supplier, for a transaction which has already materialised.

there is no question of advance.

for accounting treatment regarding this , kindly refer Accounting Standards issued by ICAI

AkhilDeep R (127 Points)
Replied 11 October 2017

g mahesh Mundra (Business and tax consultant) (3293 Points)
Replied 11 October 2017

Samir ji nothing in this transaction only the party has asked to make payment on behalf of him for this you can get a confirmation letter from the party nothing will affect in GST

Nilesh Dwivedi (32 Points)
Replied 11 October 2017

Thank You Guys.

I think from the above discussion the conclusion that could be drawn is..

GST will not be affected

Confirmation from Party is to be obtained

and a JV is to be passed in Books so that Balances are Closed.