GST on amount debit to contractor

[KARAN VERMA]

Sir, my query is - I have given some material to contractor and also debit the contractor for such material amount.

My question is whether I am required to charge GST on such amount debited to contractor or contractor is required to add such material amount in his invoice.

Example- contract value ₹ 100000 including material but I gave material ₹ 15000 to contractor.

Q-1 Whether I have required to charge GST on ₹ 15000.

Q-2 Whether contractor required to charge GST on ₹ 115000 or ₹ 100000.

[Ravinesh Sinha]

GST HAS TO BE PAID ON THE MATERIAL SUPPLIED BY YOU .

SINCE THE CONTRACT IS WITH MATERIALS ,NO GST IS PAYABLE AS IT IS ALREDY INCLUDED IN THE CONTRACTRED PRICE. IT IS UP TO CONTRACTEE TO PROCURE GOODS WHETHER FROM CONTRACTOR OR MARKET

[KASTURI SETHI]

Answer to Q.No.1 is yes.

Q.No. 2 requires elaboration after confirming from the contractor.

[Shilpi Jain]

You will charge gst on. 15k. Credit of this will be taken by contractor and he will charge gst on 1L and not the reduced value of 85k.

I did not understand how 1.15L came into question

AI Summary

GST on supplied materials: supplier must charge GST; contractor can claim input tax credit and invoice full contract consideration. The amount debited by a contractee for materials supplied to a contractor is a taxable supply and the contractee must charge GST on that material amount; the contractor may claim input tax credit for GST paid on those materials and should charge GST on the full contract consideration for the services rendered, consistent with invoicing and recordkeeping rules.