We provide service to bank first party raises invoice to second party, second party raises invoice to bank (third party)
Example first party bill to second party.
Reimburse of expenses rs, 100 ADD igst 18% is rs 18/- total 118/-
Second party bill to bank reimbursement of expenses rs 118 add gst 18% is 21/- total rs 139/-
This procedure is correct please reply
First you can take input credit of GST charged. So it is actually not a transaction of charging GST on GST.
In your example first party charged 100 + GST.
So even second party has to charge 100+GST.
Second party will collect GST from Bank and deduct GST paid to first party. So ultimate impact is Nil.
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