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Exempt supply used in providing taxble supply

Jain Uttam (Articleship) (41 Points)

31 December 2018

Hello Expert,

We are trasport service provider. We incurred toll amount, which is exempt for levy of GST as per entry 23 of NN 12/2017. We recovered the same amount from our client Say XYZ Ltd.

I charged 120000 Rs. as my fees and also 6000 rs. toll seperatly in my bill.

After totaling 126000 Rs., I charged GST @ 5% on Rs. 126000.

So my query is Rs. 6000 includible in taxable value of supply or not.
It would be appreciable, if you could quote related GST provision in you answer.
Thanking you in anticipation.

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2 Replies

pritesh (CA Final student) (7101 Points)
Replied 31 December 2018

I think amount of rs 6000 is should be consider as a reimbursement from your Client..in that case gst will not come on that.. as all ready decided in case union of india vs intercontinental consultant and technocrats pvt ltd.

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Ravi SADhiyan (Practice) (4510 Points)
Replied 31 December 2018

Originally posted by : Jain Uttam
	Hello Expert,We are trasport service provider. We incurred toll amount, which is exempt for levy of GST as per entry 23 of NN 12/2017. We recovered the same amount from our client Say XYZ Ltd. I charged 120000 Rs. as my fees and also 6000 rs. toll seperatly in my bill.After totaling 126000 Rs., I charged GST @ 5% on Rs. 126000.So my query is Rs. 6000 includible in taxable value of supply or not. It would be appreciable, if you could quote related GST provision in you answer.Thanking you in anticipation.

According to Rule 33- Value of Supply of Service in case of Pure agent

In Your cases you have used Exepmt service ( As Pe Sl.No 23 of Exemption List ) for your own purpose . So You have not fullfull all condition of Pure Agent than you are liable to Pay GST Inclunding Rs. 6000/-

Because without provide toll tax you can't provide your servisce