Will GST applicable on recovery charges?

We are a Trading company. If we are paying Transportation charges on behalf of the customer and then recovering the charges from them, will GST be applicable on this recovery?

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2 Answer(s)

If you are charging your profit on it then you have to charge GST on it but if not then no need to charge GST. don’t show it on your sales invoice. raise debit note for recovery. you have to pay RCM on it and take credit in next month.

Answered on February 13, 2018.
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Yes, it shall be taxed at the good rate as per composite supply if it is in the ordinary course of business.

Answered on March 14, 2018.
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Your Answer

Gen GST