Gst pay & itc (work contract?

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2018 Dear Experts,
I have contract with a company to repair air conditioner with materials. Hence company will pay me fixed amount irrespective of whether material was used or not. Pls clarify can I send the only service invoice with 18% GST even if material was used but No disclosure of used material in invoice. It is allowed

Pls guide....

Thanks
Rohan

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

07 June 2018 Repair of AC can be considered as composite supply comprising of goods+services. The principal supply in this case is supply of maintenance services. Therefore, you can issue tax invoice for full value (including material cost) as supply of service and charge tax @18%.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2018 Can we avail the ITC of purchased material

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

07 June 2018 Yes. you can avail credit on inward supply of material, because you will be paying tax on the value including material cost.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2018 Can we book inward material in expenses instead of purchase considering service expenses because of we do provide services not trading

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

07 June 2018 Accounting as purchases or expenses in the books of accounts does not matter under GST. You can account the same as per your practice as expense or purchases.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2018 But if we account in purchase then balance material will be stand in Stock. However if we account the same as expenses then even balance material won't stand stand in stock. During the assessment assessing officer may raise the question for the same?

Pls clarify....

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