https://www.taxtmi.com/forum/issue?id=116471 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. en-us Fri, 12 Jun 2020 11:45:41 +0530 Thu, 23 Jan 2025 15:54:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=116471 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. Discussion-Forum GST Fri, 12 Jun 2020 11:45:41 +0530 https://www.taxtmi.com/forum/issue?id=116471