Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-3-2017 Last Replied Date:- 14-3-2017 – GST will be levied on supplies and not on sale or service. For the purpose of GST, supply shall include: 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, Importation of service for a consideration, and Services have been specified in schedule I, which shall be considered as a supply even if made without consideration. The present taxable event under service tax is rendition of services which will no longer be relevant and only one event i.e., supply will be relevant for charge of tax. Supply has been defined in an inclusive manner. Tax is on supply of service, therefore, even the supply, as prescribed in Schedule-I, made without consideration will be taxable. In the present scenario, the services provided without consideration i.e., free services are not taxable. Transactions between
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es. Leased assets from outside India shall be subject to levy of IGST. In case of repossession of assets by banks / FIs / NBFC's, same will be treated as supply of goods in term of Schedule-II to the model GST law (version-II). Accordingly, any transfer of the title in goods is supply of goods. Where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person. Where any person ceases to be a taxable person, any goods forming part of the assets of any business carried on by him shall be deemed to be supplied by him in the course or furtherance of his business immediately before he ceases to be a taxable person, unless- (i) the business is transferred as a going concern to another person; or (ii) the business is carried on by a personal representative who is de
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r of the following events: Date of issue of invoice or on the last date on which invoice is required to be issued. Date on which bank receives payment with respect to such supply. As per place of supply provisions, if banks are required to pay tax on reverse charge basis, then time of supply shall be earlier of the following events: Date on which payment is made or Date immediately following sixty days from the date of issue of invoice by the bank / service provider Place of Supply As per section 9 of IGST law, the place of supply of banking and other financial services including stock broking services to any person shall be the location of the recipient of services on the records of the supplier, where the location of supplier of service and location of service recipient is in India. However, if the location of the recipient of services is not on the records of the supplier, the place of supply shall be the location of the supplier of services. Place of supply of services where the lo
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vy of taxes on real time basis based on address is not possible. In present regime, service tax is charged from account of the customer affecting such RTGS or NEFT on real time basis. Under GST, place of supply provisions provides solution to this issue. It provides for levy of tax in the State in which registered address of customer is mentioned in records (i.e., KYC documents) of the bank. The GST shall be levied on real time basis as in the present regime. Another issue for concern could be in case of multiple addresses for B2B transactions as to what shall be the place of supply. In such case, definition of 'location of recipient of services' shall provide for address of the recipient which shall be as under:- where a supply is received at a place of business for which registration has been obtained, the location of such place of business; where a supply is received at a place other than the place of business for which registration has been obtained, that is to say, a fixed
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