Dear Sir, I am Custom House Agents ( Pure Agents) werein I do not take invoices from Warehouse or from Shipping lines and hence do not claim ITC on such payments. I pay GST on my service Charges.
My Question is
I have and contract with My client & rates are fixed per container cleared by me. Quote includes all expenses like 1) wahrehouse charges2) shipping line charges 3) transport charges 4) My Service charges. I do not claim ITC on first 3 items since the invoices are generated on my clients name for respective expenses. I pay GST on my service charge. Now my client pays me entire amount per container in advance. what will be my GST implications?
Your case looks like, you are providing services as a pure agent.
First thing, make proper agreements with your clients in future to prove that you provided services as a pure agent to your clients.
Under GST regime, you have to charge GST on all expenses incurred by your to provide services. However in this case since invoices are on name of your clients and client was bound to pay the money, instead you complete their obligations.
It looks like a pure agent service. However, keep proper documents to save yourself from future disputes arising out of any department inquiry.
Since your question is not well formatted, I assume your have concern regarding receipt of entire amount as an advance.
As per provisions one has to pay GST on remuneration received in advance. You are suppose to pay GST on your fee only as remaining amount relates to services you will pay as a pure agent.
Further GST on advance as an requirement was removed. So you need to charge GST based on invoicing.
Please ask any further query either in a new question or any clarification, use comment box.
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