A GST dealer who does government work contracts supplies services as well as material with multiple tax rates. In such cases, adding the SAC code to the tax invoice and adding 18% tax rate is enough? Or add HSN code material-wise and charge tax rate separately for material and service?
In such cases, it is doubtful whether it is sufficient to enter the code that comes with SAC code 99 in table number 12-HSN-wise summary of outward supplies in the monthly GSTR1 return or whether the material details should also be given by adding the HSN code.
Is there any legal exception to fill GSTR1- Table No.12-HSN-wise summary of outward supplies details due to transactions between GST regular dealer (Taxpayer) and GST Tax deductor (Government organization)?
11 July 2024
In the context of a GST dealer who undertakes government work contracts involving both services and supply of materials with multiple tax rates, here's how you should approach the invoicing and reporting in GSTR-1:
### Invoicing and SAC/HSN Code Application
1. **SAC Code for Services and HSN Code for Goods**: - **Services**: For services provided under the contract, you should mention the appropriate SAC (Services Accounting Code) on the tax invoice. SAC codes are used to classify services under GST. - **Goods/Materials**: For goods supplied as part of the contract, you should mention the appropriate HSN (Harmonized System of Nomenclature) code for each type of material on the tax invoice. HSN codes are used to classify goods under GST.
2. **Tax Rates**: - Clearly specify the applicable GST rates (e.g., 18% for services or varying rates for different goods) separately for services and goods/materials supplied.
### Reporting in GSTR-1 - Table 12 (HSN-wise Summary)
1. **Table 12 - HSN-wise Summary**: - **Services (SAC Code)**: Services provided under SAC code 99 (which is used for non-specified services) should be reported in Table 12 of GSTR-1. You will aggregate the total value of services provided under SAC 99 and specify the applicable GST rate (e.g., 18%). - **Goods (HSN Code)**: Each type of goods/material supplied should be reported separately in Table 12 of GSTR-1. For each HSN code, you'll report the aggregate value of goods supplied and specify the applicable GST rate.
2. **Detailed Reporting Requirement**: - **Services**: Even if using SAC code 99, you need to provide a brief description of the services provided along with the aggregate value and GST rate. - **Goods**: Each HSN code requires a description, aggregate value, and applicable GST rate.
3. **Government Contracts and Tax Deduction**: - Transactions between a regular GST dealer (taxpayer) and a GST tax deductor (government organization) should be reported as per normal GST compliance requirements. - There are no legal exceptions specifically related to filling out Table 12 of GSTR-1 for transactions between GST regular dealers and government organizations. All supplies, whether to government or non-government entities, should be reported in GSTR-1 based on the details of services and goods supplied.
### Conclusion
In summary, when invoicing for government work contracts involving both services and goods, use SAC codes for services and HSN codes for goods/materials with appropriate GST rates specified separately. Report these details comprehensively in Table 12 of GSTR-1, ensuring you provide descriptions, values, and GST rates for each SAC and HSN code applicable to the transactions. This approach ensures compliance with GST regulations and facilitates accurate reporting of outward supplies.
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