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.
Debate on GST Application: Should Contractors Invoice for 100,000 or 115,000 When Materials Worth 15,000 Are Supplied? A participant in a discussion forum inquired about the application of GST on materials provided to a contractor. The contract value is 100,000, with materials worth 15,000 supplied separately. The key questions were whether GST should be charged on the 15,000 and whether the contractor should invoice for 115,000 or 100,000. Responses varied: one advised GST is payable on the supplied materials, another confirmed GST should be charged on the 15,000, and the contractor should invoice for 100,000. The third response suggested charging GST on the full contract amount, with the contractor taking credit for the materials. (AI Summary)