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Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?

Question 14 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. Let s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017? Ans. The old rate of 18% shall be applicable as services are provided prior to 1.6.2017. – Statutory Provisions, Acts, Rules, Regul

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What will be the time of supply in continuous supply of services?

Question 13 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What will be the time of supply in continuous supply of services? Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion of event. – Statutory Provisions, Acts, Rules,

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Suppose, invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable, what will be the time of supply?

Question 10 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. Suppose, invoice is not issued and date of payment or date of completion

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What is time of supply of continuous supply of goods?

Question 3 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. What is time of supply of continuous supply of goods? Ans. The time of supply of continuous supply of goods is; a) where successive statements of accounts or successive payments are involved, the date of expiry of the period to which such successive statements of accounts or successive payments relate. b) where there are no successive statements of account or successive pa

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Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?

Question 5 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined? Ans. There is a residual entry in Section 12(7) as well as 13 (7) which say that if periodical return has to be filed, then the due date of filing of such periodical return shall be the time of supp

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What is time of supply?

What is time of supply? – Question 1 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is time of supply? Ans. The time of supply fi

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When does the liability to charge GST arise in respect of supply of goods?

Question 2 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. When does the liability to charge GST arise in respect of supply of goods? Ans. Section 12 of the MGL provides for time of supply of goods. The time of supply of goods shall be the earliest of the following namely, (i) the date on which the goods are removed by the supplier, where the supply of goods require removal; or (ii) the date on which the goods are made available w

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Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?

Question 12 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not? Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of business in section 2(17) of MGL. – Statutory Provisions, Acts, Rules, R

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What are inter-state supplies and intra-state supplies?

Question 13 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What are inter-state supplies and intra-state supplies? Ans. Inter-state and intra-state supplies have specifically been defined in Section 3 & 3A of IGST Act respectively. Broadly, where the location of the supplier and the place of supply are in same state it will be intra-state and where it is in different states it will be inter-state supplies. – St

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Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?

Question 14 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why? Ans. Transfer of right to use goods shall be treated as supply of service because there is no transfer of title in such supplies. Such transactions are specifically treated as supply of service in Schedule-II of MGL – Statutory Provisions, Acts, Rules, Regul

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A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?

Question 11 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. A dealer of air-conditioners transfers an air conditioner f

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An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.

Question 10 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer. Ans. No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was me

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What do you mean by “supply made in the course or furtherance of business”?

Question 9 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. What do you mean by supply made in the course or furtherance of business ? Ans. No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a supply has been made in the course or furtherance of business:

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Are self-supplies taxable under GST?

Question 7 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. Are self-supplies taxable under GST? Ans. Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable. – Statutory Provisions, Acts, Rules, Regula

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Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?

Question 8 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods? Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1). In some cases, posses

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Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?

Question 5 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST? Ans. Yes. Under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, specified under Schedule-I of MGL, where one or more ingredients specified in answer to question no. 4 are not

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