Sirs,
My friend is a Transport Contractor. He takes trucks on hire from unregistered transporter and engages those hired trucks for transporting goods of his clients- the Clearing & Forwarding Agents. As instructed by his clients ( Clearing & Forwarding Agents), he does not charge any GST , although he is registered under GST and mentions his GSTIN on the bills. His income is the difference between the payment he receives from his clients and the amount he pays to those unregistered transporters. His clients ( the Clearing & Forwarding Agents) charge GST on their Bills ( which include his Transport Bills also) .
Is the system OK? . May please advise whether my friend is safe in the transaction. Whether he is required to submit GST RETURNS ? If so, which returns?
CAclubindia
