Author: admin_gst

What is the value of taxable supply to be adopted for the levy of GST?
Question 1
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the value of taxable supply to be adopted for the levy of GST?
Ans. The value of taxable supply of goods and services shall ordinarily be 'the transaction value' which is the actually the price paid or payable, when the parties are not related and price is the sole consideration. The MGL further elaborates vario

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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
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 be

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What will be the time of supply in continuous supply of services?
Question 13
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 o

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What is time of supply of service in case of tax payable under reverse charge?
Question 12
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is time of supply of service in case of tax payable under reverse charge?
Ans. The time of supply will be the earliest of the following dates:
a) date of receipt of services;
b) date on which payment is made;
c) date of receipt of invoice;
d) date of debit in the books of accounts by supplier.
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Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?
Question 11
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?
Ans. No. The supply shall be deemed to have been made to the extent it is covered by the invoice or the part payment.
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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
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. 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?
Ans. The time of supply shall be the date on which the recipient shows the r

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What does “date of receipt of payment” mean?
Question 9
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What does “date of receipt of payment” mean?

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What is time of supply of service when invoice is issued within prescribed period?
Question 8
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What is time of supply of service when invoice is issued within prescribed period?
Ans. The time of supply of service in such cases shall be the earliest of the following:
(i) date of issue of invoice; or
(ii) the date of receipt of payment.
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Statute, statutory provisions legislation, law, enactment,

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What is time of supply of service when invoice is not issued within prescribed period?
Question 7
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What is time of supply of service when invoice is not issued within prescribed period?
Ans. The time of supply of service in such cases shall be the earliest of the following:
(i) date completion of the provision of service; or
(ii) the date of receipt of payment.
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When does the liability to pay GST arise in respect of supply of services?
Question 6
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. When does the liability to pay GST arise in respect of supply of services?
Ans. Unlike goods, in the case of services, the time of supply is determined by the fact whether the invoice for supply of services has been issued within the prescribed period or beyond such prescribed period.
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Statute, statutory provisi

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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
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 Sectio

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What is time of supply of goods sent on approval basis?
Question 4
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What is time of supply of goods sent on approval basis?
Ans. In case of supply on approval basis, the time of supply shall be the time at which it is known whether a supply will take place or six months from the date of supply, whichever is earlier.
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What is time of supply of continuous supply of goods?
Question 3
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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When does the liability to charge GST arise in respect of supply of goods?
Question 2
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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What is time of supply?
Question 1
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is time of supply?
Ans. The time of supply fixes the point when t

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Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Question 16
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?
Ans. Supply of goods on hire purchase shall be treated as supply of goods as there is transfer of title, albeit at a future date.
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Statute, statutory provi

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Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Question 15
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Ans. Works contract and catering services shall be treated as supply of service as specified in Schedule-II of MGL.
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Statute, statutory provisions legislat

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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
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 s

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What are inter-state supplies and intra-state supplies?
Question 13
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 wi

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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
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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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
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. 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?
Ans Yes. As per Schedule-I (1) business assets put to a pri

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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
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 individu

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What do you mean by “supply made in the course or furtherance of business”?
Question 9
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Question 8
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 w

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Are self-supplies taxable under GST?
Question 7
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
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.
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