PROCEDURE FOR SUPPLY TO GOVERNMENT WITHOUT CHARGING GST

[SAFETAB LIFESCIENCE]

Dear Experts,

What is the procedure for supplying materials to Government without charging GST against Form B and is there any input restriction for the proportionate materials used for the manufacture of the goods to be supplied without charging duty. The buyer is Government organization and they are insisting us not charge GST as they would give Form B. Also please mention whether we have to collect Form B before supply and send alongwith consignment.

What are the documents to be sent alongwith consignment and Invoice for not charging GST.

[Spudarjunan S]

Dear Sir,

As per my knowledge, there is no requirement of such forms i.e. Form B from the Government Entities.

Kindly check the exemption notifications (02/2017 CT dated 28th June 2017 in case of goods and notification 12/2017 CT dated 28 June 2017 in case of services)

If such supplies are covered within such exemption notifications, then you don't required to levy GST. (Hope, incase of goods, you are supplying goods which are within the ambit of GST)

AI Summary

Supply to government without GST: verify applicable exemption notifications before treating supplies as non taxable and omitting tax. There is no statutory requirement to obtain or rely on a 'Form B' from government purchasers to exempt supplies from GST; whether GST must be levied depends on whether the supply falls within applicable exemption notifications, and if so the supplier need not charge GST. There is no obligation to collect Form B before supply or send it with the consignment; follow the documentary requirements specified in the exemption notification or procurement terms.