Output Tax-GST

Hi Team,

The requirement as follows

My Client gives subcontract to outside vendor for building/services say the total contract amount is 1 Crore, and there is a supply of 5lkhs worth of cement to the contractor for building.Its a like sale to the vendor from the client.

Now when the supplier/vendor sends the invoice of 1 crore to the Organization(client), while payment will be for 95 lkhs only, reason there is supply of 5 lkhs to the contract, in this case Credit Memo is recorded to adjust the standard Invoice of 1 crore.

As per my understanding the 5 lkhs is a sale transaction and for the same AR transaction should be created along with this GST should also be calculated and we should also create Credit Memo against the standard Transaction for the worth of 5 lkhs which will be nullified and only GST Transaction will get created and this goes to the Govt., so that my Output tax Invoice will remain in receivables.