Rate difference Debit Note to Labour Service provider
Query (Issue) Started By: – Nihal Shaikh Dated:- 17-3-2018 Last Reply Date:- 19-3-2018 Goods and Services Tax – GST
Got 20 Replies
GST
Dear Sir,
\nOur business type is Steel trading & we doing transactions of purchase and sale of steel only (no other service).
\nWe had taken Labour service from a Labour Service provider and he charged us extra rate in his GST bill
\nNow we want to raise a debit note of a rate difference on him, In this debit note should we charge him GST? OR without GST?
\nReply By KASTURI SETHI:
\nThe Reply:
\nA labour contractor has provided\/supplied Manpower Service to you and he has charged for that. Should he not charge GST from you ? You are service receiver. Why the question of raising a debit note on account of rate difference ?
\nReply By Nihal Shaikh:
\nThe Reply:
\nSir,
\nThis is not actually Manpower Service this service is Testing of material and he mentioned in his bill as "Labour Charges".<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n estricted to the actual tax liability of service supplier. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n recipient is un-registered; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ecking GST rates applied to products & for it, ITC could be easily claimed even if excess GST rate applied on a product then market prevailing rate. Its a mistake by the department {but they cant also introspect every transaction, they are humans} but unless un until with autofill of rates is given in common portal, In portal based on HSN auto populate of rates should come which is missing due to which many people are taking negative advantage of it. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Rate difference Debit Note to Labour Service provider Query (Issue) Started By: – Nihal Shaikh Dated:- 17-3-2018 Last Reply Date:- 19-3-2018 Goods and Services Tax – GSTGot 20 RepliesGSTDear Sir, Our business type is Steel trading & we doing transactions of purchase and sale of steel only (no other service). We had taken Labour service … Continue reading “Rate difference Debit Note to Labour Service provider”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10959","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10959"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10959\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nReply By Nihal Shaikh:
\nThe Reply:
\nSir,
\nIf He Corrects bill as Testing Charges with charging us GST & we want to raise Debit note on Him for extra charges then what should we do..? Charge him GST in Debit note or wthout GST?
\nReply By SHIVKUMAR SHARMA:
\nThe Reply:
\nDear Sir,
\nAs per GST Rule debit note\/Credit note will be issued only by Goods\/Service Supplier.
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nAccording to Section 34 (3) of CGST Act, 2017 " Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing s<\/p>\n
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\n (h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply;
\n (i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and
\n (j) signature or digital signature of the supplier or his authorised representative."
\n From the above it is clear that the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as indicated in rule 53 (1) of CGST Rules, 2017. The recipient cannot issue a credit\/debit note under CGST Act.
\nReply By KASTURI SETHI:
\nThe Reply:
\nWell explained by Sh.Ranganathan Sir. I agree with him entirely.
\nReply By Nihal Shaikh:
\nThe Reply:
\nThank You very much all of you Sir.
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nI explained the legal position regarding Credit\/Debit note in my reply dated 17.03.2017. From the practical p<\/p>\n
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\nReply By KASTURI SETHI:
\nThe Reply:
\nWe talk of legal aspects. Practically the department may or may not be able to detect\/examine such lapse it does not mean we should shut our eyes. No assessee would like to take risk of interest and penalty. We cannot forget that every assessee is subject to audit. More over Range Officers and Preventive Officers are to monitor and supervise. For law abiding persons it is wise to take credit as per ITC Rules. Any party who charges in excess and deposit with Govt. can claim refund. In that situation, wh<\/p>\n
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