Sir,
We, a small company need some clarity on GST issue when invoicing our clients. We have taken some project (market research) for a client; billed them the amount as per the estimate. Now our Out of Pocket expenses incurred on the project work are given to client separately (separate from the project invoice) with exact bills and we are billing exact amount, no overages for administration etc. On some bills such as food GST was charged, one or two minor bills the vendor themselves doesn’t have GST such as a small car owner whose car we used (We have a letter from all our ‘small’ local vendors stating they do not earn over 20 lakhs a year and do not have a GST number). Anyway point of all this background stuff, is to ask that say the OPE bill is a certain amount, we have bills to prove, and we are charging that exact amount. Do we add 18% GST on the OPE bill?
Our accountant has said we must charge GST, our client says we must not charge tax. What do we do? Also can you tell me the GST law, the provision so I can quote it, as needed to our client? Thanks a lot
You have to charge GST. If you are performing job as a pure agent then only GST is not chargeable. In your case your job is not that of a pure agent.
Expenses you incurred are incurred in the course of provision of services and hence GST has to be charged on these.
Sir,
Thanks for your reply.
Noted, but what about in travel reimbursement
Also please provide SAC code for the same,.
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