27 April 2018
A is facilitator to procure material 100000+5000 = 105000 ( 5% GST ) from B and delivered to us. A has raised invoice to us with charging markup 7000 ( 7% ). We have doubts in this scenario. 1. They have charged GST 19260 ( 18% of 100000 + 18% of 7000 ). Is this right.? 2. They have charged GST 6260 ( 5% of 100000 + 18% of 7000 ). Is this right.?
Kindly let me know, which option is right. option 01 or option 02.
27 April 2018
Dear Sir, GST vendor has to pass on the ITC benefit to the customer under anti profiteering. So in my views option 02 is right. Kindly clarify if i am wrong.
27 April 2018
B will charge 5% and take tax invoice stating 5% gst charged. from B, Take separate tax invoice stating commission with 18% gst provided that he is acting as mere facilitator. if he is selling you goods as PRINCIPAL, then 5% will be charged.
CAclubindia
