Rate of tax under GST on expenses debited to Trading Profit & Loss A/c
By: – KIRTIKUMAR PUROHIT
Goods and Services Tax – GST
Dated:- 14-8-2017
Expenses Under GST Regime
Rate of tax under GST on expenses debited to Trading Profit & Loss A/c
Sr. No
Nature of Expense
Rate of Tax
Whether registered supplier will levy tax
Reverse Charge(If supply is unregistered)
Whether Eligible for Input Credit
1
Salaray, wages & bonus paid to employee
0%
No
No
No
2
Electricity bill
0%
No
No
No
3
Water Charges/ Plain Water
0%
No
No
No
4
Bank Interest
0%
No
No
No
5
Professional Tax
0%
No
No
No
6
BMC Tax
0%
No
No
No
7
Building / Property Tax
0%
No
No
No
8
Rent Deposits
0%
No
No
No
9
Other Deposits
0%
No
No
No
10
Petrol / Disel/ CNG/Kerosene Expenses (Motor Spirit)
0%
No
No
No
11
Liquor Expenses
0%
No
No
No
12
Registration Fees (ROF / ROC / RTO
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etal
5%
Yes
Yes
Yes
28
Job Work / Labour Charges for printing of books, journals & periodicals
5%
Yes
Yes
Yes
29
Food & Beverages Expense (Non AC restaurant)
12%
Yes
Yes
No
30
Room Rent in a hotel, lodge (Rs.1000 to 2500 per room per day
12%
Yes
Yes
Yes
31
Fuel (Furnace Oil/LPG)
18%
Yes
Yes
Yes
32
Sales Promotion/Business Promotion
18%
Yes
Yes
Yes
33
Food & Beverages Expense (AC restaurant)
18%
Yes
Yes
No
34
Mineral water
18%
Yes
Yes
Yes
35
Truck/ Tempo Hire Charges
18%
Yes
Yes
Yes
36
Club & Membership fees
18%
Yes
Yes
No
37
Advertisement Charges / Hoarding / Magazine / News Papers / Media
18%
Yes
Yes
Yes
38
AMC Charges
18%
Yes
Yes
Yes
39
Bank Charges – Service charges recovered
18%
Yes
No
Yes
40
Broker Fee & Charges
18%
Yes
Yes
Yes
41
Cancellation Charges
18%
Yes
Yes
Yes
42
Extended Warranty
18%
Yes
Ye
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Yes
Yes
Yes
58
Payment for Sponsorship Services
18%
Yes
Yes
No
59
Security Charges
18%
Yes
Yes
Yes
60
Telephone, Mobile & internet Charges
18%
Yes
No
Refer Note 2
61
Sundry Expenses
18%
Yes
Yes
Yes
62
Job Work / Labour Charges for garment processing
18%
Yes
Yes
Yes
63
Job Work / Labour Charges (Other)
18%
Yes
Yes
Yes
64
Sitting Fees, Commission or any other payment made to director by company
18%
Yes
Yes
Yes
65
Audit Fees, Account Writing , Professional Fees (other than Advocate)
18%
Yes
Yes
Yes
66
Research & Development Expenses
18%
Yes
Yes
Yes
67
Food & Beverages Expense (AC restaurant)
28%
Yes
Yes
No
68
Wall Paint
28%
Yes
Yes
No
69
Room Rent in a hotel, lodge Above ₹ 7500/-
28%
Yes
Yes
Yes
70
Travelling Expenses International
28%
Yes
Yes
No
71
Amusement Park/ Theatre Ticket
28%
Yes
Yes
Yes
72
Cold drink
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2)
If Telephone, Mobile & Internet bill is in the name of the company and adress and place of business is mentioned then only one should claim the input credit
3)
Inpur credit is available fully. However if it is sold/disposed off/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is to be reversed for not used fully at the time of date of sale.
4)
Input credit is available only if goods & services are used for business. If good or services are used for personal purpose then input credit is not available. If goods & services are used partially for personal use and partially for business use then input credit is available partly in proportion to business use.
5)
Input credit is not available if outward supply of goods or services is exempt from payment of tax.
6)
As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate value of goods or services or both debited to Trading A/c
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