Valuation of Supply

Hi Team,

Our business model is such that we reach out customers who wants some kind of services say “X”, then we find out people who provide that particular type of services “X”. Now we ask the supplier of service to reach out to recipient of services directly and provide service to customer. 

Let us assume that the service charge is Rs. 5000 and our charges for getting customer and recipient in touch is Rs. 500 then customer pay us Rs. 5500 and we pay to the service provider Rs. 500.  
Since we have not provided the services of Rs. 5500 to the customer and we hired someone to provide those services, we are treating this as a pure agent service. We are not adding any value to the service that the service provider is making, we just provide the services as it is directly to the customer by the supplier of service.

All the vendors who provide services are unregistered in GST in my case, and all the customers are also unregistered. My firm is Registered in GST.

My 1st query is, Can I exclude Rs. 5000 from my supply value as i am just collecting that money and paying it to someone else for services taken as pure agent?

2nd: I have only income of Rs. 500, hence i should be charging GST on Rs. 500 only?

3rd: Can i issue invoice to the customer having my brand name and showing the name of supplier and customer as service provider and service recipient as like amazon do?

Note: I dont want to pay GST on 5000 as that is not my income and also if i consider Rs. 5000 as my value of Supply then GST on Rs. 5000 will swipe my all commission part and my firm will always be in loss. Since both my supplier of service and customers are unregistered in GST, no one could ever going to take credit of the same.