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2023 (8) TMI 926 - AUTHORITY FOR ADVANCE RULING, UTTAR PRADESHValuation - inclusion of reimbursement of expenses - pure agent or not - inclusion of value of material and cost of execution work for installation of lines in the value of supply for determination of taxable value under GST where all such cost are taken as reimbursement while our supply is only supervision charges - inclusion of value of material and cost of execution work for installation of lines in the value of supply for determination of taxable value under GST where all such costs are born by the recipient of service and we charge only supervision charges. HELD THAT:- All the work including cost of material and its supervision is being done by the applicant. The GST charged on the cost of material and supervision charge is tenable. In case materials have to be provided by the applicant including supervision charge the GST shall be charged under single invoice raised by the applicant. The customers of the Applicant purchase the material and arrange installation work and they advise applicant to do only supervision work. Here taxable value of supply for applicant is only supervision work and GST liable to be charged and payable on the transaction value i.e. supervision charge (as charged by applicant on total cost of work/material excluding GST on total taxable value of work/material) collected from customers by the applicant - Further, value of material and cost of execution work for installation of lines will be included in the value of supply for determination of taxable value under GST liable to be charged by the Customers of the Applicant. The GST liable to be charged and payable for the work with material arranged by customers of Applicant and should be collected by the firm/authority/person on the basis of invoice raised for the work/Service done - GST liable to be charged and payable for installation work done by the contractors hired by Customers on the basis of invoice raised for the work/service. All the work including cost of material and its supervision is being done by the applicant. The GST charged on the cost of material and supervision charge is tenable. In case materials have to be provided by the applicant including supervision charge, the GST shall be charged under single invoice raised by the applicant. In other case, if the materials is to be provided by the Consumers/recipients/Contractors hired by Consumers/recipients and they have GST invoice of materials and same is submitted to the applicant after completion of Project. Accordingly, applicant should raise invoice and charge GST for supervision charge only. To avoid double taxation, applicant should not charge GST on the cost of materials, as there is no provision in CGST Act 2017 and rules made thereunder for double taxation.
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