GST Issues in Construction Milestone Billing: Tax Treatment, Compliance Challenges, and Best Practices

Introduction : The construction and infrastructure industry has long-term contracts, which involve a staggered delivery of goods/services and payments made against such delivery. Milestone billing is sometimes used as a method of payment which means that payments are due upon the completion of specific stages of the work such as foundation, superstructure, systems installation, completion and handing over the project for use by the employer. While this is good for ensuring that both parties...