Query Franchisee GST

Raising a **bill of supply** instead of a tax invoice is generally permissible only for **exempt supplies** or supplies under the **composition scheme**, as per GST regulations. Here's how this applies to your situation:

1. **Unfinished Goods**: If the unfinished goods sent to the franchisee are taxable, a tax invoice is required. However, if these goods are exempt from GST, you can issue a bill of supply instead. If the goods are sent for job work or processing, you may consider issuing a delivery challan instead of a tax invoice, provided the conditions under GST rules for job work are met.

2. **Staff Deputation**: For staff deputation or services provided to the franchisee, if these are taxable services, a tax invoice must be issued. If the services are exempt, a bill of supply can be issued. Alternatively, if the staff deputation is treated as a reimbursement of expenses, ensure proper documentation to avoid GST implications.

To avoid double GST, you may want to review the nature of the transaction and ensure proper classification. For instance:
- If the goods or services are being transferred without consideration, it may not qualify as a "supply" under GST, and no tax invoice may be required.
- If the franchisee is registered under GST, they can claim input tax credit (ITC) on the tax invoice, mitigating the double GST issue.

Thanks for elaborate reply . However in case of restaurant both franchisee and franchosor are in composite scheme of 5% . Thus how can we avoid double GST on things supplied from franchisor to franchisee for consideration