Clarifications on Contractual Customer Management, including NAF Customers in India Post

PA/CSI/02/182/25L03850

Ministry of Communications

Department of Posts

PAF Wing, Tech Section

Date: 03.12.2025

Sub: Clarifications on Contractual Customer Management, including NAF Customers-reg

This is regarding Contractual Customer invoicing, settlement, accounting and filing GST Returns, after implementation of APT. References are being received from Functional Divisions and Circles during the business reviews, seeking clarifications on the apportionment of revenue of NAF Customers. However, accounting depends on the business processes, discounts, penalties and most importantly, GST Invoices.

2. In this connection, reference is invited to the meeting held on 27.11.2025 on Contractual Customer Management, by the Committee formed for finalising the Accounting Procedures with the Functional Divisions. Finalisation of the Unified Contractual Customer Management is to be done by the Functional Divisions.

3. In the meantime, the following clarifications are brought to the notice of all concerned.

(a) GST Tax Invoicing:

GST is applicable on the Revenue earned by the Department, which is a destination-based supply. Tax Invoice is to be generated based on the ‘Place of Supply’, i.e., based on the GSTIN of the customer, having jurisdiction of the State boundaries. Non-compliance with the GST Acts attracts penalties/show cause notices. If Revenue is accounted in a State, corresponding applicable GST, i.e., CGST/SGST/UTGST/IGST, is also to be filed by the GST-registered person with whose GSTIN the invoice is raised.

Total business done during a month by the Contractual Customer is consolidated and a discount is applied on the overall business of the customer, irrespective of the booking location. B2B invoices are generated with the Booking Locations’ GSTIN after applying the discount to the overall business of the customer. This applies to BNPL/Advance Customers who are either NAF or non-NAF Contractual Customers.

As GST is a destination-based supply, a Tax Invoice is to be generated based on the 'Place of Supply', i.e., based on the GSTIN of the customer, as mentioned below:

 

State of Booking Location	Customer Registered State / GSTIN	Place of Supply	Tax Type	DoP's GSTIN
Karnataka	Maharashtra	Maharashtra	IGST	Booking Location
Maharashtra	Maharashtra	Maharashtra	CGST/SGST
Madhya Pradesh	Tamil Nadu	Tamil Nadu	IGST
Delhi	Gujarat	Gujarat	IGST
Delhi	Delhi	Delhi	CGST/SGST

Note-1: Invoices are generated with the GSTIN of the Booking Location and Customer GSTIN.

Note-2: At the time of generating Tax Invoice, accounting is not to be done.

(b) Revision of Tax Invoices

In case of any change in the invoice value already issued earlier, correction is facilitated by the issue of Credit Note / Debit Note. A Credit Note is issued when the invoice value is revised downwards, and a Debit Note is issued when the invoice value is revised upwards, as illustrated below.

 

S1	Invoice Category	Invoice Value	CGST - 9%	SGST - 9%	Remarks
1	Original	10000	900	900	Original Invoice
2	Credit Note	1000	90	90	Revised downward by Rs. 1000 with GST
3	Debit Note	2000	180	180	Revised upward by Rs. 2000 with GST

Debit Note / Credit Note are issued only to the extent of the value increased/decreased and GST on such value

 

(c) Invoices generated in APT - Settlement & its Accounting: Invoices are to be generated as mentioned at para 3(a) above. All such invoices are to be

(i) Settlement of invoices of BNPL Customers:

When the customer makes a payment against the invoices, the same is cleared against the customer invoice/invoices, as per the mode of payment viz., Cheque - subject to realisation/Cash/NEFT. The following are the accounting scenarios:

 

SL No	Scenario	Receipt	Payment	Action at
1	Within the same CDDO	<Service Account Code> and relevant GST Account Codes	8677000200 (Cheques) 8677000300 (NEFT)
2	Between CDDO & NCDDO (RMS/BPC etc.)	8782000600 RSAO_Remitances_Credit	8677000200 (Cheques) 8677000300 (NEFT)	By CDDO
		<Service Account Code> and relevant GST Account Codes	8782000500 RSAO_Remitances_Debit	By NCDDO
3	Between CDDO & CDDO or CDDO & NCDDO (NAF Customers between Circles)	8782000600 RSAO_Remitances_Credit	8677000200 (Cheques) 8677000300 (NEFT)	By Nodal Office CDDO
		<Service Account Code> and relevant GST Account Codes	8782000500 RSAO_Remitances_Debit	By CDDO / NCDDO of Booking Location

Note-1: For any settlements between two DDOs, including NAF Settlement, intimation of receipt of payment should flow from the Office receiving the Payment to the Offices concerned for clearing their invoices.

Note-2: GST Returns are to be filed by the GST Registered Person with whose GSTIN the invoice is raised. Once invoices are raised, GSTR-1 returns are to be filed irrespective of receipt of payment.

 

(ii) Settlement of invoices of Advance Customers
When the customer makes a payment against the invoices, the same is cleared against the customer invoice/invoices, auto clearance is done by the system. The following are the accounting scenarios:

 

SL No	Scenario	Receipt	Payment	Action at
1	Within the same CDDO	<Service Account Code> and relevant GST Account Codes	8446001200 (Advance Deposit_Cleared)	CDDO
2	Between CDDO & NCDDO (RMS/BPC etc.)	8782000600 RSAO_Remitances_Credit	8446001200 (Advance Deposit_Cleared)	CDDO
		<Service Account Code> and relevant GST Account Codes	8782000500 RSAO_Remitances_Debit	NCDDO
3	Between CDDO & CDDO or CDDO & NCDDO (NAF Customers between Circles)	8782000600 RSAO_Remitances_Credit	8446001200 (Advance Deposit_Cleared)	Nodal Office CDDO
		<Service Account Code> and relevant GST Account Codes	8782000500 RSAO_Remitances_Debit	CDDO / NCDDO of Booking Location

Note-1: For any settlements between two DDOs including NAF Settlement, intimation of receipt of payment should flow from the Office receiving the Payment to the Offices concerned for clearing their invoices.

Note-2: GST Returns are to be filed by the GST Registered Person with whose GSTIN the invoice is raised. Once invoices are raised, GSTR-1 returns are to be filed irrespective of receipt of payment.

4. Invoices Generated in SAP:

(a) BNPL Bills raised in SAP, but payment received during APT Period: The bills are to be migrated to APT for settlement in APT, as mentioned in 3(c) above.

(b) Advance Customer Bills raised in SAP: All the invoices raised in SAP are cleared through F-32 automation by the system. If the revenue of any such customers is not accounted in eLekha, the same may be identified by the Office concerned and intimate PAO

 

5. GST Returns

(1) The GSTR-1 returns are filed as B2B invoices by the GST-registered person with whose GSTIN the invoice is raised, i.e., the GSTIN of the booking location, and not by the Nodal Office for NAF Customers. Nodal Offices are internal arrangements of DoP for the collection of payments, as invoices are to be generated by the system applying the discount of the overall business, but do not have any role as far as GST is concerned.

(2) If a credit note/debit note is issued, the same may be filed under the Credit/Debit Notes Section of GST-1, by the GST Registered Person with whose GSTIN the Credit Note / Debit Note is raised, i.e., the GSTIN of the Booking Location concerned.

6. Functional Divisions are requested to finalize and provide a detailed FRS to CEPT, for the development and implementation of a Unified Contractual Customer Management covering all the aspects in APT. Standard Accounting Procedure shall be provided based on the finalized FRS by the Functional Divisions.

This issues with the approval of the competent authority

(DOC (MO)/GM (Parcels)/DDG(IR & GB)/DDG(PO)/GM(CCS/BD)

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