SERVICE ENGINEER CHARGES UNDER GST

[SURYAKANT MITHBAVKAR]

We depute our service engineer to our customer place to repair the breakdown machine on chargeable basis.

We will charge our customer service charges per day and traveling fare ( Air Tickert/Train Ticket) at actual.

Under service tax law we are charging service tax on only service charge only and not on Traveliing Charges (At Actual).

Now in GST regime how will charge them. whether GST will be on Service charge only or on travelling charges also.

[KASTURI SETHI]

As per Section 15 (1) of CGST, all expenses are to form part of transaction value for the purpose of payment of GST.

[Vamsi Krishna]

Yes .. Also the rate is same of the rate being applied for the principal supply (service)..

[KASTURI SETHI]

Lucidly explained by Sh.Vamsi Krishna, Sir.

[Rajagopalan Ranganathan]

Sir,

As provided in Section 15 (2) (c) of CGST Act, 2017 " incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services.

Therefore GST is payable on service charge and travelling charge.

AI Summary

Transaction value under GST includes incidental expenses, so travel charges attract GST along with service charges. The transaction value for GST includes all amounts charged by the supplier in respect of the supply, so incidental expenses and travel charges billed alongside service charges must be included in the taxable value and taxed at the same rate as the principal supply of repair/service.