Dear Sir,
Our business type is Steel trading & we doing transactions of purchase and sale of steel only (no other service).
We had taken Labour service from a Labour Service provider and he charged us extra rate in his GST bill
Now we want to raise a debit note of a rate difference on him, In this debit note should we charge him GST? OR without GST?
Steel Trader Faces GST Billing Dispute Over Misclassified Labor Charges; Supplier Must Issue Credit Note for Overcharge. A steel trading business faced an issue with a labor service provider who charged extra in a GST bill for services labeled as 'Labor Charges,' which were actually for material testing. The business sought advice on whether to issue a debit note with or without GST for the rate difference. Respondents highlighted that under GST rules, only the supplier can issue credit or debit notes. It was suggested that the business should ensure correct billing and avail appropriate Input Tax Credit (ITC), with the supplier potentially needing to issue a credit note to adjust any overcharged GST. The discussion emphasized legal compliance and the importance of accurate documentation. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
