GST paid by employer

Is there any provision by which a company can pay the GST of a person who is working in that company and raising invoice to the company for billing to the company, but do not have GST registration?

Replies (5)
Quick Summary
This discussion explores whether a company can pay the Goods and Services Tax (GST) on behalf of a service provider who is not GST registered but invoices the company. The applicability of GST depends on factors like the service provider's turnover and the nature of the relationship. While direct payment by the company isn't a standard provision, understanding turnover thresholds and potential implications under the CGST Act is crucial.

In case of employer-employee relationship, GSY is not applicable

The query was asked for a person who is not an employee but providing service to that company. Please reply accordingly.

Your subject gives an impression that the query is with respect to employer-employee relationship. To determine the applicability of GST, one needs to know the turnover of the service provider, is he providing service to only this company etc.

These activities are listed in the Schedule I of the CGST Act. These transactions are mostly between parties which are related or between an agent and a principal. The parties pay GST and can later claim it as input tax credit.

Hello Rama,

Is not it possible for the GST registered organization to pay the GST of that unregistered person directly to the GST department of government for the payment the organization is paying to that unregistered person who is providing service?

Thank you for the replies.

Regards

Hello JGM,
The turnover may exceed 20L. Hence GST needs to be paid to government.

Thank you for the reply.

Regards

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register