re GST on amount recovery
Query (Issue) Started By: – Madhavan iyengar Dated:- 4-3-2019 Last Reply Date:- 11-3-2019 Goods and Services Tax – GST
Got 6 Replies
GST
A company has recovered Certain sums basic amount and interest from vendor these amounts are certain taxes of earlier law which was not paid by the vendor to the company and in companys assessment the ITC of earlier law was disallowed
query is gst applicable on the recovery of basic amount of taxes and the interest
Reply By PAWAN KUMAR:
The Reply:
Dear Sir,
As per my view, the same will be subject to GST. As per valuation section 15 of CGST act, any tax, duty, cess fee and any other charges of any law other than SGST, UTGST, GST(Compensation to states) Act shall be liable to be includible in value of supply of goods or services or both. Interest, late fee , penalty in respect of supply of goods or services shall also be laible to be include in value for charging GST.
Reply By SHARAD ANADA:
The Reply:
Firs
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it under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B. The applicable interest and penalty shall apply on all such reversals which shall be paid through entry in column 9 of Table 6.1 of FORM GST-3B.
6.2 Amended Para 3.
It may be noted that all such liabilities may be discharged by the taxpayers, either voluntarily in FORM GST DRC-03 or may be recovered vide order uploaded in FORM GST DRC-07, and payment against the said order shall be made in FORM GST DRC-03. It is further clarified that the alternative method of reversing the wrongly availed CENVAT credit under the existing law and inadmissible transitional credit through Table 4(B)(2) of FORM GSTR-3B would no longer be available to taxpayers. The applicable interest and penalty shall apply in respect of all such amounts, which shall also be paid in FORM GST DRC-03.
Reply By Madhavan iyengar:
The Reply:
Dear Sirs sharadji and pawanji thanks for the detailed analysis but iam once agai
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Pavan Mahulkar. GST is payable.
Reply By Spudarjunan S:
The Reply:
Dear Sir,
Reply to your Query + explanation provided:-
I'm on the view that there is no supply in this transaction as the same is transaction in money. No requirement to pay GST on the same.
Grounds for opinion :-
W.e.f from 01.02.2019 – Schedule II of CGST Act can't be used for determining the transaction whether it is supply or not. It is only to classify whether the supply is supply of goods or services.
The clause (e) of Sl.no.5 of Schedule II of CGST Act sounds like a residuary clause as it mentions agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act which can be interpreted in a way to cover even transaction in monies. Before classifying a supply under this head a detailed analysis and great care has to be taken.
I'm re-iterating your case in some other manner for better understanding – you made payment to vendor for purchase of 100 units but
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