GST Charges on supply

402 views 2 replies

Tanuja

Student

23 Points Posted on 21 January 2023

I need some clarification regarding GST

We have a platform i.e a website on which we list some of our HSP and received some booking through the online portal but most of the booking we have done through our sales team on which following step are to be performed.

1. We have received enquiry on our website from client.

2. Our sales team call them and book their booking

3. We allocate them Service provide

We received amount from client and then after deducting our commission we give the amount to our service provider.

Now my query is this that on what amount we should charge GST on whole amt which we received from client or only on commission part which we charge from our service provider.

Replies (2)

kl Bhavana

Student CA Final

422 Points Posted on 21 January 2023

Hi Tanuja,

The services provided by you looks like services of E Commerce operator under GST.

Lets take an example:

If the value of services provided through your platform is 1lac and lets say applicable gst rate on the said service is 18%. So total Invoice value is 1.18lacs

Now lets say your commission is 5k and GST 18 %(900) on commission. So total 5.9k

Please note that TCS shall be deducted at 1% if not falling under specified services category mentioned in 9(5) of CGST Act, 2017.

Now when you are paying to service provider you may deduct 5.9k and TCS 1% which is 1k. Net amount payable to service provider is 1.111lacs.

Hope this helps

Thanks
Bhavana K L
Chartered Accountant
Bhavana @ lbkca.in

Tanuja

Student

23 Points Posted on 22 January 2023

Hii Bhavana K L. Thanx for your reply. but in our case we use website for lead generation. client does not book through our website only 10% of customer book through online portal. so in this case whether this service provided by us or the ultimate service provider.

Note:- All service provider are unregistered