Billing Professional Services that includes Govt. Fees

We are a GST Registered Consultancy Firm. We deal in company registrations. We hire freelance professionals for company registration services. Their fees include Govt. Fee & their Professional Fee. But they do not provide any GST Invoice. So my query is, how should we bill our clients for their company registration services? We can't provide itemized bills as Govt. Fee & Professional in separate. Either we have to charge GST in whole or we can bill them as a non-GST supply? Which would be the proper way according to the GSTN regulations?

Please help!

Replies (2)
Quick Summary
This discussion addresses how a GST-registered consultancy firm should bill clients for company registration services when freelancers provide combined invoices for government fees and their professional charges. The core question is whether to charge GST on the entire amount or treat government fees separately under the 'pure agent' concept, as per GSTN regulations. The advice suggests that if transactions are conducted in the client's name, GST may not apply to the government fees portion, allowing for GST to be charged only on the firm's own service fee.

On the basis of the concept of pure agent, GST would not be applicable on fee paid to the govt. Just ensure that the transactions are carried out in the name of the client.

With respect to other services, you may raise invoice with GST.

My invoice to clients includes, Govt. Fees + Freelancer's Professional Fee + My service fee. Should I still don't need to raise GST included invoice?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Follow