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RA Bills in case of contractor

08 April 2023

My Client is a Contractor and regularly submits RA bills to Govt Authorities. These RA bills includes GST as well. Post agreement with agencies, he raises Final Tax Invoice with GST and mention RA/Eway bill references in final Tax Invoice. Guidance required on below points:

1 - Whether RA bills should be part of GSTR1 or Final Tax Invoice ? If RA bills to be part of GSTR 1, then how Final tax invoice should be accounted for ?

2- If there are Open RA invoices at year end where final tax Invoices have not been raised, should we book revenue on these RA bills as Unbilled revenue (accrual) only for Income piece or RA bill should be accounted for with GST amount as at 31st March ?

Please help !!

CA Amit Goel

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4 Replies

CA Rakesh Ishi (Working at Private Company) (8202 Points)
Replied 09 April 2023

The GST component of the revenue should not be recognized until the Final Tax Invoice is raised. Once the Final Tax Invoice is raised, the revenue and GST should be recognized in the month in which it is raised and should be included in the GSTR-1 return for that month.

RA bills should be included in the GSTR-1 returns in the month in which they are raised, and Final Tax Invoices should be raised separately with reference to the RA/E-way bill.

The Final Tax Invoices should also be included in the GSTR-1 return of the month in which they are raised.

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RRR Fintech Solutions LLP (3 Points)
Replied 10 April 2023

This seems to be contradictory:

If I raised RA bill first along with e-way bill and show it in GSTR1 as well, then why will I show final bill again in GSTR1 ? This will be duplicate entry and tax payment as well. Please correct me if my understading is not correct.

Regards,

CA Amit Goel

NARENDRA (ACCOUNTS MANAGER) (1994 Points)
Replied 10 April 2023

I think about the time of making R.A.bill, & the format of R.A.bill where they put full amount & then less the previous R.A.bills amount. I think so , not sure .

Rajendra Prasad (Employee Private) (1867 Points)
Replied 10 April 2023

As per my knowledge and experience, when you have raised Ra Bill along with has to submit Tax Invoice / E-Invoice and has to report the same in GSTR 1. If there is any rectification has to generate Credit / Debit Note and same has to report in GSTR 1.

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