I am a service provider for a leading telecom manufacture OEM . We have service office registered under each state. Our OEM transfers spare parts to us on a challan( from their central warehouse to our state warehouses). We stock these materials and use for their service requests as and when required. We send back the defectives to OEM to close the transaction. Neither OEM nor us bill this material. I just want to understand if this comes under GST or I can do the way I am doing currently
You need to charge GST on materials used in performing service.
Section 15(2)(b) of CGST Act, specifies that:
any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;
So, in your case even if your client did not supply these materials you would have purchased them from outside. Since it is an expense which was incurred by your supplier, amount should be charged in invoice and GST should be charged.
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