cab operator service

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Ashish Saini (Querist)

11 August 2017 Hello friends One person is providing cab service in banks and is registered under Gst. Under bank premises he pays parking charges to other person who is also registered under gst. parking service provider issues Gst invoice to cab service provider and charge Gst in the bill. Parking charges are paid by cab service provider and it's reimbursement is made by bank to cab service provider . this amount of parking charges including gst is charged by cab service provider in it's cab service Gst invoice . is it correct for cab service provider to charge parking charges in it's invoice and get reimbursement from bank or this parking charges should not be shown in invoice by cab service provider. if amount is shown in invoice by cab service provider then there would be Gst on Gst on parking charges amount. if shown separately then Gst paid on parking service ( as this would be a input service ) it's credit should be allowed to car service provider or not ,as he is also getting it's reimbursement from bank also. please make it clear , I will be very thankful to you

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

11 August 2017 GST credit on parking allowable to cab operator. Hence he has to charge in his invoice only parking charges and GST on it. By doing so no GST on GST arise.

Ashish Saini

Ashish Saini (Querist)

11 August 2017 okk sir thanks a lot!

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