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Gst on service charge

SUNIL GIDWANI (PRACTISE) (138 Points)

02 August 2019

Hi Mam
my client is registered as Composition dealer
He is doing business of electrical items like fan n led lights and on same he is providing services of Fitting of that lighs n fan and he is getting service charges from his client... in that case he has to charge gst on service he is providing on fitting of that light n fans?

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2 Replies

Sonu Kumar (Accountant ) (16 Points)
Replied 02 August 2019

composition service providers, the applicable GST rate is 6% (being 3% CGST + 3% SGST) according to 32 gst council meeting

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Shivam RC (Student) (23683 Points)
Replied 03 August 2019

As per the Provision of Section 10(4) of the CGST Act 2017, Composition Scheme Dealers are not allowed to collect GST from their customers nor entitled to claim ITC.

Being a Service Providers, you have to pay 6% GST (3% CGST + 3% SGST ) out of your own pocket on your Turnover in State or Turnover in Union Territory.