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

Input Tax Credit: claimable when expense recovery is treated as taxable support service; disallowed where your supply is exempt.
Whether GST should be charged when recovering contractor labour costs and whether the principal may claim ITC depends on the taxability of the principal's supply: if the principal's supply is exempt/non GST, GST paid to the contractor is part of cost and ITC is not available; alternatively, the recovery may be treated as a separate taxable support service (with a tax invoice and GST charged) enabling the principal to claim ITC, or the contractor can invoice the customer directly; contractual terms must be reviewed.