TaxTMI 
TaxTMI 
GST Taxability....................
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....ST Taxability.................... <br> Query (Issue) Started By: - milan bamal Dated:- 3-7-2026 Goods and Services Tax - GST <br> Got 4 Replies <br> GST<br> <br> 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 t....
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....he 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? --Reply By: Shilpi Jain The Reply: The exemption that you are claiming is service recipient specific (Local authority/State Governemtn/ CG) and service specific. So if when your friend is providing the services, it is not provided to the notified recipi....
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....ent then it will be taxable and not exempt. --Reply By: KASTURI SETHI The Reply: In this scenario this is not correct way to claim exemption. In order to claim exemption, you are required to supply sanitation services direct to Municipal Corporation. No exemption is available to your friend. Exemption in this scenario is conditional. Your friend would not be supplying sanitation services direct....
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....ly to Municipal Corporation. Here is the decision of AAR, Telangama :- 2023 (11) TMI 592 - AUTHORITY FOR ADVANCE RULING, TELANGANA - In Re : Immense Construction Company --Reply By: Sadanand Bulbule The Reply: I welcome the replies. However my concern is deeper than what it looks at surface: Where sanitation and similar public welfare functions entrusted to Municipal Corporations are Con....
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....stitutionally intended to receive tax exemption, denying the same benefit to subcontractors executing the very same activity results in embedded GST cost without ITC availability, thereby indirectly burdening the local authority and frustrating the constitutional objective behind such exemptions. Hence, exemption provisions require a purposive interpretation based on the nature of the function exe....
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....cuted rather than the contractual layering of the supply chain. --Reply By: Raam Srinivasan Swaminathan Kalpathi The Reply: Your friend should positively impute GST on the invoice. You will file umpteen AARs on this issue. <br>***<br> Discussion Forum - Knowledge Sharing....