GST - SEZ -Sub Contract
01 August 2020 Company "C" is situated in SEZ and we "A" are providing man power services to it. We have hired bus of "B" for our labour transportation from their point to the Unit. Company pays man power service charges along with monthly bus fare to us and we pay to "B". Whether GST attracted here ? Who is liable for d same?
01 August 2020 Yes, you have to charge GST on the manpower service charges including bus fare since the bus is hired by you.However, you may not charge GST on supply service to SEZ after execution of LUT under rule 96A.
01 August 2020 Yes we have executed LUT. I think there is no GST issue in between company and us, but what about "B" the bus service provider? As it is a contract between us and him. He has to raise invoice with GST? Is LUT applicable to him ?
02 August 2020 Yes, B has to charge GST on his bill to A and there is no LUT involved in this because A is the recipient,as defined under section 2(93), in this case and not the SEZ. You can avail ITC and claim refund if you have accumulated ITC.