Jayanta Bandyopadhyay (310 Points)
29 June 2021While we will buy AC Machine (GST rate 28%) -seller also requires to dismantle certain old equipments and install this new one with labour supply (GST rate 18%). Now vendor cum dealer wants 2 different Purchase Orders because of 2 different GST rates, Accounts Dept refuse to subscribe to this idea. They want single Purchase Order. Kindly advise whether split PO is required for supply and service part Rgds Jayanta Howrah 29.6.21
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 29 June 2021
Supply of AC and labour for installation would mean a composite supply liable for 28% of GST. Probably the vendor is insisting on separate POs so that these transactions can be treated as different and GST at 2 different rates can be charged accordingly.
There is no compulsion to issue separate POs if both the transactions are related to one another. Usually the supplier and the buyer will have an internal arrangement which is mutually beneficial.
Dhruv Parekh
(4 Points)
Replied 27 March 2023
Why would it be 28%. PO can have multiple lines with different items and services on each? In which case, how do we calculate GST?
Jayanta Bandyopadhyay
(310 Points)
Replied 27 March 2023
Sir
There is a strong argument that this is an integrated PO. Split is just to camflague the scenic, as they debate. Authority is not subscribing to any other views.
Regards
Jayanta
CAclubindia
