SERVICES UNDER GST REGIME (PART-II) (Registration and Supply)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 23-2-2017
Place of Registration / Centralized Registration
In the present service tax regime, there is a concept of centralized registration subject to fulfillment of certain conditions.
Under GST regime, registration may be required in each State from where supplies are being made. Hence, service provider may need to obtain registration in each State where there is a premises (including site office) from where services are being provided. Centralized registration will no longer be available which will increase the cost of compliance for the assessees. It would become an unproductive exercise for multi location enterprises such as banks, insurance company etc.
Supply
'Supply' means:
* all forms of supply of goods and/or services made or agreed to be made for a consideration by a person in the course or furtherance of business,
*
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ce to occupy land,
* Any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly,
* construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly where the entire consideration has been received before issuance of completion certificate or before its first occupation, whichever is earlier.
* works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract.
Information Technology Sector
Development, design, programming, customization, adaptation, up-gradation, enhancement and implementation of information technology software.
Hospitality
Supply of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
entioned services are taxed to service tax as a declared service under section 66E of the Finance Act, 1994. In some services like that of IPR or works contracts or restaurant sales, VAT is also payable. In GST regime, only one tax ,i.e., GST will be charged and moreover, there will be a clarity on to the nature of service. Overall tax rates are also likely to come down which may benefit the consumers of these services.
Inter-State or Intra-State
Any supply of services where the location of the supplier and the place of supply are in different States then, such supply shall be considered as inter-state supply and as such, accordingly, provisions of IGST law will be applicable. On other hand, any supply where the location of the supplier and the place of supply are in same State, then such supply shall be considered as intra-state supply and only CGST / SGST shall be levied.
Presently, all services are subject to central tax, i.e., service tax which applies to whole of India except
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ervice recipient, where the address on record of the recipient exists with the exporter. Hence, it will be critical for exporters to ensure that the address of service recipient on record can be established before the authorities on request.
Import of Services / Reverse Charge
Import of services from outside India shall be taxed in the hands of recipient of services under reverse charge mechanism. Central / State Government will also notify certain cases where tax shall be collected under reverse charge mechanism as is presently done.
Further, any person receiving certain specified services for personal use of value exceeding a specified amount will also be liable to pay GST under reverse charge.
Transactions between head office and branch offices located outside/inside India
Services provided to overseas branch would not be eligible as export of services due to specific exclusion for such transactions in the definition of 'export of service'. This is similar to the exis
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =