Recovery of expense from customer

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....ecovery of expense from customer<br> Query (Issue) Started By: - KARAN VERMA Dated:- 12-6-2020 Last Reply Date:- 13-6-2020 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>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 rai....

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....se 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. Reply By Rajagopalan Ranganathan: The Reply: Sir, What is the nature of service provided by you? If it is exempted/non-GST then the gst charged by your labour contractor will become part of the cost since the se....

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....rvice provided by you is exempted/non-gst you are not eligible to availITC. Reply By Ganeshan Kalyani: The Reply: Here, there is one to one co-relation. I mean, though your normal supplies are non-gst , but , in my view, this single transaction is to be treated separately. You can raise a tax invoice on your customer as &#39;support service&#39; by charging GST. You can take credit of the GST c....

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....harged by your labour contractor on you. You can keep the amount of the transaction same (if you had not made any margin) so that credit is equal to liability. Reply By Ganeshan Kalyani: The Reply: Or, you can ask your labour contractor to raise invoice on your customer (actual recipient of service) directly. Reply By YAGAY andSUN: The Reply: Please review the terms and condition of the contr....

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....act which you entered with the contractor and with your customer to avail the ITC and charge the GST accordingly.<br> Discussion Forum - Knowledge Sharing ....