Tax Exempt on Cement

This query is : Resolved

Deepak Rawat (Querist)
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27 January 2021 Dear Sir,
I am doing a Construction work of Block Development office. I have charged GST @ 28% on Cement but JE is asking to remove GST Charges. As per him, Cement is exempt as the same was provided by BDO through Governement Depot.
Please guide is it right ? If Yes, please share complete procedure like any exemption certificate require from BDO or any other procedure.
Wish to hear from you soon.

Lekhraj sood

Lekhraj sood (Expert)
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27 January 2021 Was it supplied free of cost to you or against invoice? If free of cost then you should not charge and if against invoice then you are right in charging GST.

Deepak Rawat

Deepak Rawat (Querist)
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27 January 2021 Sir, It was purchased in cash from Government Depot. And we charged the same amount on our bill plus GST. But BDO is denying for GST amount. He has paid that bill also but GST amount didn't paid by them.

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CA Shilpi Jain

CA Shilpi Jain (Expert)
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01 February 2021 If as per the scope of the contract cement is in your scope you are required to charge GST even if it is supplier FOC by the recipient.
However if the scope of work has clearly stated that cement is in the scope of the recipient to provide for the construction then GST should not be charged by you.