Intermediary service

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

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kathir

kathir (Querist)
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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)
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27 April 2018 B has to raise tax invoice directly to you.

kathir

kathir (Querist)
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27 April 2018 Thanks for your explanation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 April 2018 Most welcome...............

Anmol Davesar

Anmol Davesar (Expert)
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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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