GST vs Non-GST Invoicing
How GST is applied to service fees, why pass-through costs carry no GST, and where the platform fee sits.
Fingaon applies GST the way Indian tax rules require: on the professional service value, not on money that is merely passed through to an authority.
The rules in plain terms
- GST applies to the service fee. A firm's professional fee is subject to GST (currently 18%), split as CGST + SGST (or IGST for inter-state supply).
- Pass-through costs carry no GST. A government fee or statutory deposit that the firm remits in full on your behalf is not a taxable supply by the firm — no GST and no platform fee is added on top.
- A firm without a GSTIN issues a non-GST invoice — no GST line is added to its service fee.
Where the platform fee sits
Fingaon charges the firm a platform commission (typically in the 9–12% range depending on the firm's plan, capped at a fixed maximum per engagement). This is between Fingaon and the firm. The platform's own GST on that commission is tracked separately as Fingaon's liability — it is not added to your invoice.
Worked example
A firm registered for GST does a filing with a ₹1,000 professional fee and pays a ₹500 government fee on your behalf.
| Line | Amount | GST |
|---|---|---|
| Professional fee (revenue) | ₹1,000 | +₹180 (18%) |
| Government fee (pass-through) | ₹500 | — |
| Invoice total | ₹1,680 |
The ₹500 is remitted in full to the authority; only the ₹1,000 fee attracts GST.
Tip
On a GST invoice you will see the firm's GSTIN, the place of supply, and the CGST/SGST (or IGST) split. If a charge is pass-through, it appears without tax.