We are GTA and registered under GST. We have got a contract from a company(employer) for transport of a material by road. We have appointed a sub contractor to undertake the entire work on back to back basis. While all the works are done by the sub contractor, however, Consignment notes are in our name and billing to employer also are generated in our name. Employer is deducting 5% CGST+SGST on RCM basis along with IT TDS at 2% and making payment to us. We have to make the entire payment received from employer to sub contractor after deducting applicable IT TDS.
Our query is whether the sub contractor shall raise his invoice with GST or without GST. If the answer is without GST, it is simple. In case the sub Contractor is to issue Invoice with GST, then what is the GST rate we need to pay or request the employer to deduct to claim ITC.