Gst Issue Government Supply


Jatinder Aggarwal
watch_later 3 years, 3 months ago

WE ARE A GOVERNMENT SUPPLIER. GOVERNMENT DEPARTMENT APPROVES THE RATES INCLUSIVE OF FREIGHT, TOLL CHARGES AND 18% GST.

FOR EXAMPLE RATES APPROVED IS RS.1718/-  ALL INCLUSIVE AS ABOVE.

METHOD 1 TO ISSUE INVOICE

RS 1455.93 + 18% GST RS. 262.06 = RS 1718

HERE WE HAVE TO PAY SERVICE TAX ON FREIGHT SEPARATELY MEANING DOUBLE TAXATION

METHOD 2 

BASIC PRICE 1283 + GST 18% = RS 1513.94 ADD RS 204.06 TOWARDS FREIGHT RS. 175 GST@ 5% ON FREIGHT RS 8.75 AND RS. 20.31 AS TOLL CHARGES...

PLEASE ADVICE WHICH METHOD TO ADOPT AND AVOID DOUBLE TAXATION...

REGARDS

JATINDER AGGARWAL

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1 Answer

GST Payer watch_later 3 years, 3 months ago
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Whichever method you apply, tax impact will be same.

You cannot charge 5% GST on freight. 5% is only for GTA and not for everyone.

You have to charge 18% on freight (same as your principal supply).

If you are showing Toll in invoice or not your total tax impact will be same.

In invoice you have to charge 18% on every expense. Status remain same even if you are issuing 2 invoices.

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