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Work Order

Kushagra Gupta (Student CA IPC / IPCC) (83 Points)

25 February 2018

I am the manufacturer of RCC Pipes. I have received a purchase order from my client and along with Purchase Order, he has issued a work order for coating work inside the pipe.
How to proceed for billing and what will be the GST rate?

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4 Replies

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 26 February 2018

IT IS COMPOSITE SUPPLY OF GOODS AND SERVICES. THE PRINCIPAL SUPPLY BEING PIPES, THE ENTIRE CONSIDERATION OF THE WORK ORDER WOULD BE TAXED UNDER GST AS SUPPLY OF PIPES. THE GST RATE ON SUPPLY OF PIPES IS 18% UNDER HSN 6810

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Kushagra Gupta (Student CA IPC / IPCC) (83 Points)
Replied 28 February 2018

But my client has issued separate work order for bitumen coating work. Now how to proceed?

RAMESH KUMAR SINGLA (PROFESSIONAL) (1777 Points)
Replied 28 February 2018

If the work order for supply of goods ie. pipes and services i.e. coating, are separate, then it is simpler. You charge the GST separately by issuing separate invoices. The GST on coating is 18%