ACHYUT SHARAD LOHAR asked 7 years ago
Registered person does not charge GST
We have given subcontracting work of installation and commissioning to the registered GSTN holder
but in his invoice, he does not charge GST. is there any problem that will create for me in the future?
Sachin Agrahari answered 7 years ago
Dear Sir,
If he is a registered person he shall have to charge GST in his invoice and pay to the government. there can be a situation where a registered person is billing inclusive of GST in that case amount need to be grossed up for GST calculation.
For example: If “A” is charging Rs. 1000 and does not charging any Tax in his invoice then for GST calculation the amount will be grossed up 1000/118%= 848 (base amount) if we calculate GST on 848 @18% then amount will come 152 it means Taxable value is 847+ 152(GST) = 1000 (Total value).
ACHYUT SHARAD LOHAR answered 7 years ago
sir i have confirmed with party but he is not charge gst
or this invoice is not inclusive of gst
only subcontracting charges are levied in invoice without any tax
Sachin Agrahari answered 7 years ago
Dear Sir,
Ask the reason from party for not charging GST. There will be no issue for you because when he charge GST you will pay and take Credit of the same.
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