GST Taxability....................

[milan bamal]

I was awarded a sanitation tender by the Municipal Corporation.

This supply is exempt from GST.

I assigned this tender to my friend.

At the end of the month, I will submit an invoice to the Municipal Corporation for the exempt supply

On the other hand, my friend issued an invoice in the name of my firm for sanitation services.

So, will my friend charge GST on the invoice or not?

[Raam Srinivasan Swaminathan Kalpathi]

Your friend should positively impute GST on the invoice. You will file umpteen AARs on this issue.

AI Summary

GST treatment of assigned sanitation contracts turns on whether the friend's invoice remains exempt despite the underlying municipal supply. A sanitation tender awarded by a Municipal Corporation is described as exempt from GST, and the contractor plans to invoice the Municipal Corporation for that exempt supply. The tender is then assigned to a friend, who issues an invoice in the contractor's firm name for sanitation services. The question raised is whether GST is payable on the friend's invoice even though the underlying Municipal Corporation supply is stated to be exempt.