Recovery of expense from customer

[KARAN VERMA]

Sir, i am taking services of contractor labour for some work related to my customer. Now, contractor raise invoice on me for the work with GST.

And I want to recover the same expense from customer.

Can I required to raise GST invoice for recovery of same expense. If yes, whether i am eligible to claim ITC on invoice raised by contractor on me.

Except above, my all other supplies are Non GST supplies.

AI Summary

Can you claim ITC on a GST-inclusive contractor invoice? Explore exemptions, separate transactions, and direct invoicing options. A user inquired about recovering expenses from a customer after receiving a GST-inclusive invoice from a contractor for labor services. The user asked if they should issue a GST invoice to the customer and if they could claim Input Tax Credit (ITC) on the contractor's invoice. Responses varied: one suggested that if the user's services are exempt/non-GST, they cannot claim ITC; another advised treating the transaction separately, allowing for a GST invoice and ITC claim. Alternatively, it was suggested to have the contractor invoice the customer directly. Reviewing contract terms was also recommended.