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GST Applicabilityy

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Veera Veera

253 Points Posted on 25 May 2021

Hi,

We paid the Fees to the Government for Export Certificates on behalf of Client.
Certification Fees paid to the Government Including GST.

Query is: How will the Service Provider Issues the Bill to the Recipient??
Because, It is not his Income

Please, reply

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) applicability when a service provider pays export certificate fees to the government on behalf of a client. The advice suggests that if the certificate is for the client, the provider acts as a 'pure agent'. In this scenario, the GST Input Tax Credit (ITC) can be claimed by the client. The service provider should issue an invoice showing the government fees separately, without charging GST on them, provided certain conditions are met. A key point raised is whether the invoiced value, excluding GST, counts towards the agent's turnover.

Mujeeb Doi

309 Points Posted on 26 May 2021

If the certificate belonged to the customer the GST ITC shall be availed only by the customer and you being the pure agent(If conditions are satisfied)shoud issue invoice by showing the amount paid to government separately. And there is no need to collect GST on such payments if you are sure that the payment made by you was of as pure agent

Veera Veera

253 Points Posted on 26 May 2021

Ok, But If we show in the Invoice: Value & GST Separately.
The Value which we will show, will not be considered as a part of Turnover for the Agent right