gst on service
This query is : Resolved
27 June 2017
Dear Experts
I am a manufacturer and i have a weighbridge in my factory for self use but i have weighbridg income from outside trucks also.
my query is should i have to pay gst on weighbridge income also and if yes then can i take credit of that gst in my gst paying on sales of finished product
27 June 2017
You have to pay gst on weighbridge income also and you can't take credit of that gst in your gst paying on sales of finished product.
27 June 2017
your concern seems to be...since the truckers are likely to be unregistered under GST, RCM will come into play...and then can the ITC be claimed..........The answer is YES.
27 June 2017
my concern is suppose abc ltd is a maufacturing unit of cement and he installed a weibridge in factory for weighing of his own material but sumtimes he weighing out sides material of other factory which is not factories product
27 June 2017
in that case i hv to pay gst n that gst can i take creditfor my sale gst
27 July 2024
### GST on Weighbridge Income
If you are a manufacturer and have a weighbridge used for both your own materials and for weighing materials of outside trucks, here's how GST applies to the income from weighbridge services:
**1. **GST on Weighbridge Services**
**A. **Taxability of Weighbridge Services:**
- **Weighbridge Services:** The income from providing weighbridge services to outside parties (such as other trucks or vehicles) is considered a taxable service under GST.
- **GST Rate:** Weighbridge services fall under the category of "support services" and are generally taxed at **18% GST** as per the GST tariff for support services. This is in line with the classification of similar services under the GST rate notifications.
**B. **Charge GST:**
- **On Income:** You must charge GST on the income received from providing weighbridge services to external parties. This GST needs to be collected and remitted to the government.
### **2. **Input Tax Credit (ITC)**
**A. **Claiming ITC:**
- **Eligible ITC:** You can claim input tax credit (ITC) on GST paid for services and inputs used to provide weighbridge services, provided these are used in the course of your business.
- **On Weighbridge Services:** If the weighbridge services are part of your manufacturing operations and contribute to your business, you can claim ITC on any GST paid on inputs and services related to maintaining or operating the weighbridge. This can include GST on repair and maintenance of the weighbridge, electricity, and other related expenses.
- **On Sales:** The GST collected on weighbridge services should be reported in your GST returns (GSTR-1), and the GST paid on inputs can be claimed as ITC in your GSTR-3B or GSTR-2A.
### **3. **Specific Case:**
**A. **Example of ABC Ltd:**
- **Scenario:** If ABC Ltd uses its weighbridge for weighing materials of outside factories occasionally, the GST treatment would be similar. GST should be charged on the weighbridge services provided to these outside parties at the rate of 18%.
- **ITC Claim:** ABC Ltd can claim ITC on GST paid for inputs and services used in the operation of the weighbridge, subject to the conditions for claiming ITC.
### **4. **Documentation and Compliance**
**A. **Invoicing and Reporting:**
- **GST Invoice:** Issue a GST-compliant invoice for weighbridge services, showing the GST rate (18%) and the applicable HSN code.
- **Reporting in Returns:** Report the income and GST collected from weighbridge services in GSTR-1, and pay the collected GST through GSTR-3B.
- **Claiming ITC:** Ensure that ITC claims for GST paid on inputs and services are supported by proper documentation and aligned with the GST provisions.
### **Summary**
1. **GST Rate:** Weighbridge services are subject to **18% GST**.
2. **Charging GST:** You must charge GST on the income from providing weighbridge services to external parties.
3. **Claiming ITC:** You can claim ITC on GST paid for inputs and services used in operating the weighbridge, provided it is used for business purposes.
4. **Documentation:** Issue GST-compliant invoices, report in GST returns, and ensure proper documentation for claiming ITC.
### **References**
- **GST Rate Notifications:** Relevant notifications and circulars regarding the GST rates applicable to support services and weighbridge services.
- **CGST Act, 2017:** Sections related to the levy of GST on services and claiming of ITC.
For precise guidance and compliance, consulting with a GST professional or tax advisor is recommended.
If you are a manufacturer and have a weighbridge used for both your own materials and for weighing materials of outside trucks, here's how GST applies to the income from weighbridge services:
**1. **GST on Weighbridge Services**
**A. **Taxability of Weighbridge Services:**
- **Weighbridge Services:** The income from providing weighbridge services to outside parties (such as other trucks or vehicles) is considered a taxable service under GST.
- **GST Rate:** Weighbridge services fall under the category of "support services" and are generally taxed at **18% GST** as per the GST tariff for support services. This is in line with the classification of similar services under the GST rate notifications.
**B. **Charge GST:**
- **On Income:** You must charge GST on the income received from providing weighbridge services to external parties. This GST needs to be collected and remitted to the government.
### **2. **Input Tax Credit (ITC)**
**A. **Claiming ITC:**
- **Eligible ITC:** You can claim input tax credit (ITC) on GST paid for services and inputs used to provide weighbridge services, provided these are used in the course of your business.
- **On Weighbridge Services:** If the weighbridge services are part of your manufacturing operations and contribute to your business, you can claim ITC on any GST paid on inputs and services related to maintaining or operating the weighbridge. This can include GST on repair and maintenance of the weighbridge, electricity, and other related expenses.
- **On Sales:** The GST collected on weighbridge services should be reported in your GST returns (GSTR-1), and the GST paid on inputs can be claimed as ITC in your GSTR-3B or GSTR-2A.
### **3. **Specific Case:**
**A. **Example of ABC Ltd:**
- **Scenario:** If ABC Ltd uses its weighbridge for weighing materials of outside factories occasionally, the GST treatment would be similar. GST should be charged on the weighbridge services provided to these outside parties at the rate of 18%.
- **ITC Claim:** ABC Ltd can claim ITC on GST paid for inputs and services used in the operation of the weighbridge, subject to the conditions for claiming ITC.
### **4. **Documentation and Compliance**
**A. **Invoicing and Reporting:**
- **GST Invoice:** Issue a GST-compliant invoice for weighbridge services, showing the GST rate (18%) and the applicable HSN code.
- **Reporting in Returns:** Report the income and GST collected from weighbridge services in GSTR-1, and pay the collected GST through GSTR-3B.
- **Claiming ITC:** Ensure that ITC claims for GST paid on inputs and services are supported by proper documentation and aligned with the GST provisions.
### **Summary**
1. **GST Rate:** Weighbridge services are subject to **18% GST**.
2. **Charging GST:** You must charge GST on the income from providing weighbridge services to external parties.
3. **Claiming ITC:** You can claim ITC on GST paid for inputs and services used in operating the weighbridge, provided it is used for business purposes.
4. **Documentation:** Issue GST-compliant invoices, report in GST returns, and ensure proper documentation for claiming ITC.
### **References**
- **GST Rate Notifications:** Relevant notifications and circulars regarding the GST rates applicable to support services and weighbridge services.
- **CGST Act, 2017:** Sections related to the levy of GST on services and claiming of ITC.
For precise guidance and compliance, consulting with a GST professional or tax advisor is recommended.
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