TaxTMI 
TaxTMI 
TaxTMI 
Chargeability of GStT on invoice
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....hargeability of GStT on invoice<br> Query (Issue) Started By: - Navid Mukadam Dated:- 9-11-2024 Last Reply Date:- 14-12-2024 Goods and Services Tax - GST<br>Got 10 Replies<br>GST<br>We would like to send an invoice to a client located in a different state for CMO services received from a local vendor, for which we have already been charged CGST and SGST. Can we charge the client IGST? Is it legal ....
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....to do so? Reply By RaamSrinivasan Kalpathi: The Reply: Positively legal to charge IGST provided of course there has been flow of services through the local vendor. Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: I endorse the views of Sri Kalpthi Reply By KASTURI SETHI: The Reply: Answer is 'yes'. Will your client be able to take ITC of IGST ? Reply By Ganeshan Kalyani: The Reply: ....
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....Yes, you can charge IGST. Reply By Amit Agrawal: The Reply: What do you mean by 'CMO Services'? Reply By Shilpi Jain: The Reply: I too have the question of what is CMO service. This apart, charging CGST/SGST or IGST does not depend on what is the tax that you paid on your input/input services/capital goods. It depends on what is the place of supply and what is the location of the sup....
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....plier. Reply By KASTURI SETHI: The Reply: The term, 'CMO' may be related to marketing services (All types of marketing services including digital etc.). Reply By Yash Shah: The Reply: Applicability of provisions by supplier would not be dependant on the provisions applicable for persons from whom he is receiving and what is he charging, as per my view - even though when you receive th....
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....e invoices which may be C+S, however as per the place of supply provisions under section 12, if CMO services fall under the category of Residual, i.e. 12(2) you can very well charge the IGST and along with that bill/invoice to the client. Reply By Navid Mukadam: The Reply: CMO service are basically from a contract manufacturing organization, or CMO, which helps pharmaceutical and biotechnology c....
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....ompanies manufacture their innovative drug substances which includes commercial production, drug development, formal stability, formulation development, method development, pre-formulation, and registration batches Reply By KALLESHAMURTHY MURTHY: The Reply: Dear Sir, From the query, it is understood that you received marketing services from a local vendor, CMO (maybe a Chief Marketing Organisa....
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....tion). You receive an invoice from the CMO and pay CGST and SGST. As a result of the CMO service, you supply goods/services to your client in another state for which you ought to raise a tax invoice for IGST. So there are two transactions. The tax paid under CGST & SGST is a different transaction and the invoice for IGST is a different transaction. If you made supplies to the interstate client ....
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....through CMO collecting CGST & SGST from CMO, you cannot raise the tax invoice again for IGST. The CMO has to collect IGST if the CMO makes onward supplies. This is my opinion according to understanding the query.<br> Discussion Forum - Knowledge Sharing ....