GST Taxability
This query is : Resolved
03 July 2026
I was awarded a sanitation tender by the Municipal Corporation.
This supply is exempt from GST.
I assigned this tender to my friend.
At the end of the month, I will submit an invoice to the Municipal Corporation for the exempt supply
On the other hand, my friend issued an invoice in the name of my firm for sanitation services.
So, will my friend charge GST on the invoice or not?
I was awarded a sanitation tender by the Municipal Corporation.
This supply is exempt from GST.
I assigned this tender to my friend.
At the end of the month, I will submit an invoice to the Municipal Corporation for the exempt supply
On the other hand, my friend issued an invoice in the name of my firm for sanitation services.
So, will my friend charge GST on the invoice or not?
03 July 2026
Whether your friend must charge GST depends on the nature of the service provided to your firm. If the service involves the supply of goods (making it a "works contract"), it is likely taxable, even if your own contract with the Municipal Corporation is exempt. If it is a "pure service," it may potentially be exempt, but this requires a careful legal assessment of the contract terms and relevant notifications. You should consult a tax professional to review your specific agreement to ensure compliance.
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