LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

GST composite supply query

CA Ameetkumar Jain (Practising Chartered Accountants) (83 Points)

02 December 2019

I have a query related to GST supplies. My client is engaged in Bar & Restaurant business, he makes bill by providing liquor price at MRP + Service Charges. At present he is not charging any GST on this “Composite Supply” as the principle supply is non – GST item. Now, officer is asking him to charge GST on “Service charge” portion separately. Kindly guide, whether office is correct?

Reply
Follow
Share

4 Replies

gopi (ca) (19 Points)
Replied 02 December 2019

Your are absolutely correct and department cannot levy gst on series charges since it is not main business and complementary service in addition to sale. our business is not provide the service

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 02 December 2019

@ Mr CA Ameetkumar.,

Yes... Officer is correct. If You are separately charging service charge in the bills then GST applicable for the charges...

In case You will billing without Service charge (including) then no need to charge GST...

1 Like

Shivam RC (Student) (23683 Points)
Replied 02 December 2019

Officers contention is absolutely correct. You have to charge GST on Service Charges, since the Service Charges is being recovered separately from the consumers.

1 Like