How should a service invoice be raised if output services are charged at 18% GST but input material used in providing services are charged at 5% rate of GST ?
Replies (6)
Quick Summary
This discussion addresses how to raise a GST invoice when services are charged at 18% GST, but the input materials used have different GST rates (e.g., 5%). The consensus is that the GST rate applicable to the output service (18% in this case) is what should be charged on the final invoice. The GST rates of input materials do not directly affect the output GST rate, although they can be claimed as input tax credit. The nature of the supply (composite vs. mixed) is also considered, with composite supplies being taxed based on the principal supply and mixed supplies taxed at the highest applicable rate.
HOW ARE BOTH RELATED ? THERE WILL BE ONLY ONE INVOICE FOR OUTPUT. WITH TAXABLE VALUE + 9%CGST + 9%SGST =INVOICE VALUE. There will be be any effect of input gst % on output invoice ( as far as my knowledge is concerned).