Government co. end consumer or liable to pay gst

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This query is : Resolved

CS and ACMA Raju lakhani (Querist)

31 July 2017 A Govt. Co (*) provide tender to Contractor for work construction of police station and jail for them. Contractor provide Running A/c bill by Charging GST @ 18%.Now Govt. Co. deduct 8.5% Agency Fee(**) as their profit part and make payment to contractor. Now my question is that any GST output arise to us for 8.5% charge deducted from Contractor. *Govt Co. share are held by Governor of the State. Government Company is working as middlemen for Govt. of the State which receive administrative approval from the Govt. of the State for the same work. **Agency fee is that which Govt. Co. charge from the Contractor to meet their business expenditure, employee salary ,etc. Is there any output GST arise in this case or not for agency fee.
Therefore Govt. co is end consumer or liable to pay GST. (Govt. co. is Registered is GST)

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2017 The Govt. co is end consumer liable to pay GST. Being Govt. co. is Registered is GST.

CS and ACMA Raju lakhani

CS and ACMA Raju lakhani (Querist)

31 July 2017 Is there any scope of GST input or output for the same. suppose contractor raise bill of Rs. 100 & CGST Rs. 9 & SGST Rs. 9 = Rs. 118/-. Now our Bill Agency Fee is Rs. 108.50. (8.50%). Therefore can we have output GST on the same. So that our Output - Input = Tax payable on GST.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 July 2017 Yes you can do it..................

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