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kathir (Querist)

27 April 2018 A is facilitator to procure material 100000+5000 = 105000 ( 5% GST ) from B and delivered to us. A has raised invoice to us with charging markup 7000 ( 7% ). We have doubts in this scenario.
1. They have charged GST 19260 ( 18% of 100000 + 18% of 7000 ). Is this right.?
2. They have charged GST 6260 ( 5% of 100000 + 18% of 7000 ). Is this right.?

Kindly let me know, which option is right. option 01 or option 02.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 April 2018 A has to raise invoice to you with charging markup 7000 ( 7% ) with 18% GST on 7000.

Message likes : 1 times

kathir

kathir (Querist)

27 April 2018 Dear Sir, GST vendor has to pass on the ITC benefit to the customer under anti profiteering. So in my views option 02 is right. Kindly clarify if i am wrong.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 April 2018 B has to raise tax invoice directly to you.

kathir

kathir (Querist)

27 April 2018 Thanks for your explanation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

27 April 2018 Most welcome...............

Anmol Davesar

Anmol Davesar (Expert)

27 April 2018 B will charge 5% and take tax invoice stating 5% gst charged. from B, Take separate tax invoice stating commission with 18% gst provided that he is acting as mere facilitator. if he is selling you goods as PRINCIPAL, then 5% will be charged.

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