Goods and Services Tax – Started By: – Nihal Shaikh – Dated:- 17-3-2018 Last Replied Date:- 19-3-2018 – Dear Sir,Our business type is Steel trading & we doing transactions of purchase and sale of steel only (no other service).We had taken Labour service from a Labour Service provider and he charged us extra rate in his GST bill Now we want to raise a debit note of a rate difference on him, In this debit note should we charge him GST? OR without GST? – Reply By KASTURI SETHI – The Reply = A labour contractor has provided/supplied Manpower Service to you and he has charged for that. Should he not charge GST from you ? You are service receiver. Why the question of raising a debit note on account of rate difference ? – Reply By Nihal Shaikh – The Reply = Sir,This is not actually Manpower Service this service is Testing of material and he mentioned in his bill as Labour Charges . Also he wants to charge us GST in BILL,In this situation what can we do? He not agreed to raise Credit note
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Corrects bill as Testing Charges with charging us GST & we want to raise Debit note on Him for extra charges then what should we do..? Charge him GST in Debit note or wthout GST? – Reply By SHIVKUMAR SHARMA – The Reply = Dear Sir,As per GST Rule debit note/Credit note will be issued only by Goods/Service Supplier. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 34 (3) of CGST Act, 2017 Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed. According to rule 53 (1) of CGST Rules, 2017 A revised tax invoice ref
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axable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and (j) signature or digital signature of the supplier or his authorised representative. From the above it is clear that the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as indicated in rule 53 (1) of CGST Rules, 2017. The recipient cannot issue a credit/debit note under CGST Act. – Reply By KASTURI SETHI – The Reply = Well explained by Sh.Ranganathan Sir. I agree with him entirely. – Reply By Nihal Shaikh – The Reply = Thank You very much all of you Sir. – Reply By Rajagopalan Ranganathan – The Reply = Sir,I explained the legal position regarding Credit/Debit note in my reply dated 17.03.2017. From the practical point of view though the supplier had paid duty at higher rate and issued taxable invoice to you , you simply avail the credit of gst paid at higher rate
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te. Its a mistake by the department {but they cant also introspect every transaction, they are humans} but unless un until with autofill of rates is given in common portal, In portal based on HSN auto populate of rates should come which is missing due to which many people are taking negative advantage of it. – Reply By KASTURI SETHI – The Reply = We talk of legal aspects. Practically the department may or may not be able to detect/examine such lapse it does not mean we should shut our eyes. No assessee would like to take risk of interest and penalty. We cannot forget that every assessee is subject to audit. More over Range Officers and Preventive Officers are to monitor and supervise. For law abiding persons it is wise to take credit as per ITC Rules. Any party who charges in excess and deposit with Govt. can claim refund. In that situation, what would be the fate of ITC ? Govt. Has sufficient time period to detect such lapses that extended period. Whether it is pre-GST era or post GST
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