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Constructive Payments to Vendors - Goods and Services Tax - GSTExtract Dear Experts ABC pvt ltd. has been awarded a works contract by M/s XYZ Ltd. wherein they have an understanding that XYZ will directly make payments to vendors (Steel 7 cement) on behalf of and on request of ABC. Vendors will issue bills to ABC only, however, payments will be made by XYZ to vendors on submission of bill-wise requests from ABC Query: Is this an indirect payment considered as payment to vendors (Constructive payments) and a 180-day reversal as per the second proviso of section 16 (2) will not attract? Assuming all such payments have been made before 180 days. Is there any possibility that the GST department can dispute such indirect payment and ask to reverse ITC? Thanks
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