GST Compliant Payment Procedure for Contractor Bills in India

This document outlines the procedure for paying contractual bills in India, taking into account the implementation of the Goods and Services Tax (GST). Under the GST regime, service providers (i.e. contractors) are responsible for submitting invoices (bills) that clearly separate the GST component from the total cost of the work performed. Here's the payment procedure for contractors once GST comes into effect:

1. GST: Goods and Services Tax is a value-added tax levied on the supply of goods and services in India.

2. Service providers: Individuals or companies providing services to customers in exchange for payment.

3. Contractors: Service providers who enter into contractual agreements to provide specific services or complete a project.

4. Invoice: A document detailing the goods or services provided, including the payment amount due.

5. Bill: A formal, written statement of charges for goods or services rendered.

6. Gross amount: The total amount charged for goods or services before any deductions or expenses.

7. Work executed: The services or tasks completed by the contractor.

8. Procedure: A set of steps or actions followed in a specific order to achieve a desired outcome.