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Can I pass on supplier's GST bill to my client without adding my own GST

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Ramakumar M

17 Points Posted on 05 August 2023

Hi Tax experts,

I have a question regarding GST invoice that I send to my clients. I buy digital advertisement from Facebook for my client. Facebook's Invoice is on my GSTIN and already has 18% GST on it. When I pass on this bill to my client I add my charges too onto it which I do add GST. When I send the total invoice to my client, should I add another 18% on Facebook's invoice ?

Example is as below:

1. Facebook ads cost which I bought for my client = Rs.1000 + GST(18%) = Rs.1180. This GST is on my GSTIN since I bought the ads on behalf of my client.

2. My charges for managing Facebook Ads for my client: Rs.100.

When I invoice my client, it is obvious that I will add GST on my charges of Rs.100. My question is: should I add GST on Facebook's invoice which already contains GST ?

Thanks in advance for your insightful answers..

Regards,

Replies (3)

Quick Summary

This discussion addresses whether a business can pass on a supplier's GST bill to a client without adding their own GST on top of the original supplier's GST. The consensus among experts is that you should invoice the total amount (including the supplier's cost and your own charges) and add your applicable GST. You can then claim Input Tax Credit (ITC) for the GST you have paid.