Goods and Services Tax – UTGST Rate Schedule u/s 7(1) notifying rates of UTGST @ 2.5%, 6%, 9%, 14%, 1.5% and 0.125% – As amended by notification dated 18-8-2017 – TMI Updates – Highlights
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Goods and Services Tax – Last Date for Payment of Gst and Filing of Return in Form GSTR 3B For July 2017 Extended By 5 Days – TMI Updates – Highlights
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Goods and Services Tax – GST – Dated:- 20-8-2017 – The last date for payment of taxes and filing of GST Return in Form 3B for the month of July is 20th of August 2017. Since it is the first Return to be filed under GST, the tax payers and the tax practitioners have requested for few more days to file their Return. Also there have been requests from States which are hit with floods to extend the last date for filing of GST Returns. The State of Jammu & Kashmir has also requested for extensio
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Goods and Services Tax – GST – Dated:- 20-8-2017 – The GST Implementation Committee, consisting of State and Central Government officers, has taken a decision to extend the last date for payment of the GST for the month of July 2017 to 25th August, 2017. Earlier the last date for payment of taxes and filing of GST Return in Form 3B for the month of July was kept as 20th of August 2017. Since it is the first Return to be filed under GST, the tax payers and the tax practitioners have requested fo
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Goods and Services Tax – Started By: – THYAGARAJAN KALYANASUNDARAM – Dated:- 20-8-2017 Last Replied Date:- 21-8-2017 – Dear expert, Modus operandi of our businessWe are providing services to various customers located in US as staff recruitment services. And the billing is made only from US office to our customers. And the company having branch office located in India and reimbursed all expenses made in India with some profit from our US office against the invoice raised by Indian branch to US office. And we get all the payment only foreign convertible currency. My query is1.whether are we Exporter of service? 2. If yes do we have to execute the bond or LUT as the case may be? 3. Do we get the refund against the inputs used in the business
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nce with Explanation 1 in section 8 (as under). Explanation 1.-For the purposes of this Act, where a person has,- (i) an establishment in India and any other establishment outside India; (ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons. As stated above, services supplied by Indian office to US office of the same company is not export of service although Indian Branch raises invoice and collects payment in FE. It will be treated as inters
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Goods and Services Tax – Started By: – Vrushali Khadsare – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – I do not have gst number , how I can generate my new gst number on line, pls. Help me . – Reply By KASTURI SETHI – The Reply = First arrange the docs. Aadhar card, PAN, Proof of ownership or rent deed of business premises, residence proof, Bank account details water bill or electricity bill etc. Then visit gst.gov.in. The system will guide you step by step. Opt for new registration. You
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Customs – Started By: – Anil Kumar – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – Wrong GSTIN declared by CHA in Bill of Entry now what happens and what can id do – Reply By Rajagopalan Ranganathan – The Reply = Sir,You approach the proper customs Authority to amend your Bill of entry. – Reply By RAMESH PRAJAPATI – The Reply = Please file your application with the Commissioner of Customs of port of import for amendment of Bill of Entry under section 149 of the Customs act 1962. – Reply By
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Goods and Services Tax – Rates of UTGST on specified parts of tractors from 14% to 9 % – Notification – TMI Updates – Highlights
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Goods and Services Tax – Rate of IGST reduced on specified parts of tractors from 28% to 18 % – Notification – TMI Updates – Highlights
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Goods and Services Tax – Rates of CGST on specified parts of tractors reduced from 14% to 9 % – Notification – TMI Updates – Highlights
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Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 19-8-2017 Last Replied Date:- 19-8-2017 – Dear SirWe have parent company abroad who give us various services like Professional, IPR, management consultancy services etc. The billing cycle is quarterly (we cant shift billing cycle on monthly basis) and they also raise the invoice and we make payment on due date.Since billing cycle is quarterly we make monthly provision for expenses in the books of accounts. In service tax we used to make payment on provision basis. many times provision was excess as compare to invoice raise by parent company and we used to adjust this excess payment for making payment of service tax subsequently in next month as allowed in rule 6(4A). but under GS
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By Rajagopalan Ranganathan – The Reply = Sir, Section 31 (2) of CGST Act, 2017 stipulates that A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed: Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which-(a) any other document issued in relation to the supply shall be deemed to be a tax invoice; or (b) tax invoice may not be issued. Rule 47 of CGST Rules, 2017 stipulates that the invoice referred to in
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een distinct persons as specified in section 25, may issue the invoice before or at the time such supplier records the same in his books of account or before the expiry of the quarter during which the supply was made. In my opinion the second proviso to rule 47 will help you to find a solution in your case. – Reply By RAMESH PRAJAPATI – The Reply = As per Sr No 4 of the Schedule I of the CGST Act, Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business is a supply even it is made without consideration. Further, supply is being made from non-taxable territory to India so tax is payable by recipient on reverse charge basis. As informed by the
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Goods and Services Tax – Started By: – kamdev senapati – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – Dear Experts,One Trader registered under GST composition scheme (quarterly return) and the turn over is below 75lacsBut the Trader wants to adopt Regular Scheme/Regular Business (Monthly Return) under GST.How to process the same..Is it possible to change over the same now…Please guide on this…. – Reply By RAMESH PRAJAPATI – The Reply = You may refer to following CBEC – GST – FAQ Q 25.
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Goods and Services Tax – Started By: – nandankumar roy – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – we are filling TRN-1 . So pl tell input credit agst RCM can taken in this month or to be claim in next month only.so i have to change return and another thing we have credit of cenvat appx 1 core and in vat no credit and C FORM collection due appx 4 crore out of 10 cores 2% sales , in this situation vat liability will be arise how much amt ,pl confirm when we are going to submit TRN1 whether we have to pay cash agst vat liability amount agst not recd of c form amount or it will be adjust agst cenvat. With Regards, N KROY – Reply By RAMESH PRAJAPATI – The Reply = RCM credit is available in the same month. Need not to wait for next mont
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quent month. – Reply By KASTURI SETHI – The Reply = Rightly advised by Sh.Kalyani ji. Also go through FAQs issued by the Board. There is solution to this problem. You will get benefit of credit against liability of Form C. You will not find the word Form C. There is provision for deemed credit. I think it will cover credit against your liability of Form C. – Reply By RAMESH PRAJAPATI – The Reply = By a tweet , GOI has clarified that ITC in case RCM can be taken and utilised in the same month. In support of this a well drafted article when can one take ITC for RCM Cases has been published by TMI today itself. – Reply By KASTURI SETHI – The Reply = Yes. Sir.Only condition is to pay first cash and then take credit. Credit can be taken on the s
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Goods and Services Tax – Started By: – priyesh agrawal – Dated:- 19-8-2017 Last Replied Date:- 31-8-2017 – BACKGROUND The assessee is dealing in extracting oil from cotton seed. earlier in VAT both oil and cotton seed cake were taxable but due to rate differences, they have a huge amount of credit lying in their stock in VAT regime. ISSUE in GST cotton seed oil cake is exempt as is used as cattlefeed. so if we carry the credit under sec 140(1) to GST will we be allowed to carry whole credit or has to reverse proportionate credit. Further what will happen if credit is in excess of the tax paid on the stock lying on 30.06.2017(eg: input credit is of 15 lac, but tax paid on stock lying as on 30.06.2017 is of ₹ 5lac only.) – Reply By Rajagopalan Ranganathan – The Reply = Sir, Section 140 (1) of CGST Act stipulates that a registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit c
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. However there is no Notification clarifying that cotton seed cake is exempt. – Reply By KASTURI SETHI – The Reply = Full credit will not be allowed. Regarding the point raised by Sh.Kalyani Sir, if tariff rate is nil, no need of notifications. In pre- GST era, tariff rate was nil and now under 2306 is nil. Correct HSN 2306.10. – Reply By priyesh agrawal – The Reply = Rajagopalan sir, I know the provision but need help in interpretation. How to interpret word admissible. And will we get 100% credit. And what will happen in the case I mention in last paragraph. Kalyani ji as per notification no 2/2017 cgst rate cotton seed oil cake is exempt if used as cattle feed. Thus as per rule 42 we will get proportional credit. Kasturiji can you please put some more light on the case I mentioned in last paragraph of my query. Thank you all of you for your prompt reply. – Reply By KASTURI SETHI – The Reply = Sh.Pyuish Aggarwal Ji,. When you will file TRANS 1, balance of credit to be carried forwar
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om ₹ 15 lakhs which is provisional. – Reply By priyesh agrawal – The Reply = Sir but my query relates to 140(1) as assessee is already registered in VAT – Reply By Rajagopalan Ranganathan – The Reply = Sir, Section 140 (1) of CGST Act, 2017 deals with cenvat credit. Cenvat credit deals with credit of cenvat duty paid on manufactured goods and service tax paid on output services. Section 140 (1) of Madhaya predesh SGST Act, deals with credit of VAT. This section talks about credit of the amount of Value Added Tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, Even this Act stipulates that the registered person shall not be allowed to take credit where the said amount of credit is not admissible as input tax credit under this Act (Madhayapredesh SGST Act). Therefore if cotton seed oilcake is exempted under State GST Act, the you will not be allowed to take the transitional credit. Therefore you cannot take
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oubt over to reverse on whole 15 or on 5 only as tax paid on stock lying in closing stock is of rupees 5 lac only. – Reply By Ganeshan Kalyani – The Reply = I would request the querist to reproduce the phrase / text from the Notification which states that Cotton Seed Cake is exempt if it is used in Cattle Feed manufacturing. To my knowledge the 'Oil cake' is taxable and 'De-oiled cake ' is exempt. Cotton Seed Cake contains oil , so it is taxable. – Reply By KASTURI SETHI – The Reply = If taxable supply is also involved then proportionate reversal of ₹ 15 lakhs required. – Reply By priyesh agrawal – The Reply = Notification 2/2017 central rate entry no 102 read as follows: Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake. On interpretation of the said entry it can be said that deoilled cake, wheat bran, ha
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the advertisement has a disclaimer that it is only for educational purpose. It has no legal validity. – Reply By KASTURI SETHI – The Reply = Dear Querist,. You day your query relates to Section 140 (1) but it is not your choice or option. You are hit by Section 140 (3). First be sure about taxability of your product as advised by Sh.Ganeshan Kalyani, an expert. Pl. deeply into all the aspects involved in this situation. – Reply By vijay kumar – The Reply = Mr.Priyesh, If taxable supplies are also involved post-GST, I think the entire credit lying in balance as on 1.7.2017 can be carried forward. Sn.140(1) specifies only 3 conditions. First condition is that credit shall be eligible under both the laws – in this case, credit was eligible under VAT act and is eligible under GST also since it is meant for furtherance of business (if taxable and exempted supplies are there, you are governed by Section 17) . Second condition of previous six months returns should be satisfied. Third – no not
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Goods and Services Tax – Started By: – Mehul Pandya – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – Dear Sir, In case if XYZ LTD. is registered in GST and located in SEZ area. He received some transportation services and advocate services as per 9(3) of CGST Act. In this case do SEZ unit require to pay GST under RCM ?? – Reply By KASTURI SETHI – The Reply = NOT required. – Reply By RAMESH PRAJAPATI – The Reply = Services imported by SEZ are exempted. Secondly it is zero rated supply for a t
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Goods and Services Tax – Started By: – pawan singhal – Dated:- 19-8-2017 Last Replied Date:- 20-8-2017 – sir one of my client doing textile business in which he has taken gst registration. But he have also Rent income. can he give gst tax invoice for rent to party mentioning alloted gst number.or he have to take seprete gst registration for rent income . is he have rent income then 20 lakh to take gst seprete registration due to diffrent business verticle law. – Reply By KASTURI SETHI – The Reply = Amendment in provisional registration certificate required. The system would not accept. If accepted, the amount of GST would be accounted for towards textile. Better option is to file an application for additional of a new device. – Reply By KA
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Goods and Services Tax – Started By: – saravanan rengachary – Dated:- 19-8-2017 Last Replied Date:- 20-12-2017 – GST payment done yesterday thru e-payment mode is not reflecting in GST portal. The amount is already debited in bank account and payment challan confirmation is received with payment status as Success . Deposit Status as per GST TOOL is INITIATED and unable to proceed to set off the liabilities and file the return.IS there any issue in GST portal?. – Reply By KASTURI SETHI – The Reply = Nothing to worry. Sometimes it takes time to accept challan and credit the same in Govt. Account. Your money will not be lost. It also happened with me amount was credited to Govt. After some days. – Reply By RAMESH PRAJAPATI – The Reply = GST P
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Goods and Services Tax – Started By: – hubert fernandes – Dated:- 19-8-2017 Last Replied Date:- 21-6-2018 – We undertake construction of residential complex and shall avail ITC on inputs. We however have doubt on inputs used on a project after its completion / occupancy certificate from local authorities.The above can be elaborated with the following case example Assumption : Project 1 is one among the other on going projectsProject 1 consisting of 100 flats, wherein occupancy certificate from local authorities is obtained say on 1/9/2017. On the day of occupancy out of the 100 flats say 70 flats have been sold and the receivables as per payment schedule of these 70 flats are 95 % of consideration value as indicated in agreement. However on the day of occupancy certificate an estimated of 90% of the cost of construction is complete and balance 10% works gets executed and completed before the physical possession of these flats . (say 3-4 months wef 01/09/17)The issue is whether ITC on
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irship fees Please advise us on the above so that ITC can be rightly captured at invoice level – Reply By RAMESH PRAJAPATI – The Reply = ITC is allowed on taxable turnover only. ITC should be reversed proportionately in respect of exempt supply. – Reply By Ganeshan Kalyani – The Reply = Dear builders , reduce the price of the project post GST as seemless flow of credit is there. Yes proportionate credit is allowed. – Reply By KASTURI SETHI – The Reply = I agree with the views of Sh.Prajapati, Sir. His brief reply covers all your points. I further add para-wise as under:- (a) Not admissible. (b) Does not agree sale factor is there. (c) Yes. Audit fee and retainer-ship fee would be considered ineligible. This is the legal position explained above. Now I deviate somewhat and discuss your issue logically. As per Section 66 (E)(b) of the Finance Act, 1994 and Schedule-II of Section 7 of CGST Act, 2017 the conditional nature of exemption from Service Tax/GST remains the same whether it is pr
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nt of service has disappeared. How practically is it feasible that service has been converted into sale by mere factum of timing of receipt of consideration ? The legal status of service cannot be changed into sale or vice versa by any stretch of imagination. There is no co-relation between incidence of service (now supply) and time-factor of receipt of entire consideration. How can the factum of time factor determine the fate of consumer, builders or contractor or the whole nation in the interest of revenue ? The essence of definition of service whether in pre-GST era or post GST era remains almost the same. Time factor of receipt of consideration cannot prevail over the definition of service, if it prevails, it is contradictory and can be termed as flaw in the law or unconstitutional. In view of time factor involved, time factor cannot override definition of Service and supply . Can any house/ flat/ building be constructed without service i.e. site preparation service, architect'
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GST SECTORAL SERIES – FAQ: Gems & Jewellery – Goods and Services Tax – GST – Dated:- 19-8-2017 – PDF DOWNLOAD – News – Press release
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GST SECTORAL SERIES – FAQ : IT/ITES – Goods and Services Tax – GST – Dated:- 19-8-2017 – PDF DOWNLOAD – News – Press release
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Goods and Services Tax – Guidelines for filing of return in FORM GSTR-3B FOR July 2017, determination of tax payable, adjustment of ITC, payment of tax by 20.8.2017 etc. – TMI Updates – Highlights
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Goods and Services Tax – GST – By: – Shripada Hegde – Dated:- 19-8-2017 Last Replied Date:- 27-10-2017 – Claiming Input Tax Credit not violating the provisions of GST Act is very much important as wrongly availing ITC would result in interest and penalty implications. At the same time it is also important that the ITC is availed and utilized without delay, failing which working capital may get impacted negatively. Keeping this in mind, this article intends to analyse the time at which one can take ITC in case of inward supplies liable to tax under RCM. Conditions for availing ITC have been put forth in Section 16(2) of CGST Act. The said section has been reproduced below for easy reference. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or s
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prescribed. Said such other documents have been prescribed in Rule 36 of CGST Rules. List of documents as per Rule 36 are as follows an invoice issued by the supplier of goods or services or both in accordance with the provisions of section 31 an invoice issued in accordance with the provisions of clause (f) of sub-section (3) of section 31, subject to the payment of tax a debit note issued by a supplier in accordance with the provisions of section 34 a bill of entry or any similar document prescribed under the Customs Act, 1962 or rules made thereunder for the assessment of integrated tax on imports an Input Service Distributor invoice or Input Service Distributor credit note or any document issued by an Input Service Distributor in accordance with the provisions of sub-rule (1) of rule 54 Sl. No. 2 in the above list refers to the Invoice to be raised when a registered dealer receives any inward supply from Un-registered dealer. Hence, it should be noted that unlike the previous regim
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ncurred. Hence, one may come to a conclusion, based on the above discussion, that ITC for RCM cases can be availed in the same month in which inward supply is received. – Reply By somayajulu csjr – The Reply = By means of which GST form can this self assessed RCM tax paid in cash can be claimed as ITC? GSTR-1 Offline Tool includes Business to Business (B2B), Business to Consumer inter-state for amount exceeding ₹ 2.5 Lakhs (B2CL), Business to Consumer less than ₹ 2.5 Lakhs (B2CS), Exports, Credit/ Debit Note (CDNR) and Credit/ Debit Note for unregistered Persons (CDNUR), Advances, Advance Adjustments and HSN. There is no way to upload the invoice issued in terms of section 31(3)(f) of CGST Act in GSTR-1 except indicating the number of invoices raised for inwardsupplies from unregistered suppliers under RCM. From the number of invoices GSTN cannot pickup the amount of tax paid to allow ITC. GST ITC-01 is not for section 16(2) read with section 41 & 39. Please clarify! –
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Goods and Services Tax – GST – By: – VINOD CHAURASIA – Dated:- 19-8-2017 Last Replied Date:- 21-8-2017 – Place of Supply under GST and determination of nature of supply under GST Introduction: This article discusses in detail about place of supply, its importance & place of supplier of services & recipient of service and determination of nature of supply under GST. GST is Destination based taxation or consumption based taxation. By Destination based tax we mean that the revenue accrued to the place where the goods or services are consumed. Therefore Place of Supply in GST is nothing but the place where the goods or services are consumed. Place of Supply under GST is an important factor as it defines whether the transaction will be counted as intra-state(i.e within the same state) or inter-state(i.e. between two states) and accordingly the changeability of tax, i.e levy of SGST, CGST & IGST will be determined. Due to the below reasons, the determination of correct place of
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axes based on Place of Supply, two things are to be considered namely: Location of Supplier: It is the registered place of business of the supplier Place of Supply: It is the registered place of business of the recipient. General provisions for determination of place of supply of goods such as: If the supplier as well as the recipient are located in same state, then it will be counted as Intra-State Supply of Goods and hence SGST & CGST will be levied. If the supplier and the recipient are located in different states, then it will be counted as Inter-State Supply of Goods and hence IGST will be levied. Specific provisions for determination of place of supply of goods such as: The place of supply of goods: where the supply involves movement of goods The place of supply of goods: where the supply involves no movement of goods The place of supply of goods: in case of export & import of goods. These points are discussed below in the article. The transactions in terms of supply of s
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re. General Rule The Place of Supply for services treated as international transactions shall be: The location of service recipient In case where the location of service recipient is not available, the place of supply shall be location of the supplier. The special cases under this classification are discussed below in this article. Location of the recipient of services as per section 2(14) of IGST Act: S.No Case Location of Recipient of Service Where a supply is received at a place of business for which the registration has been obtained such place of business Where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere) such fixed establishment Where a supply is received at more than one establishment, whether the place of business or fixed establishment the location of the establishment most directly concerned with the receipt of the supply in absence of such places the location of the usual place of
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ch the movement of goods terminates for delivery to the recipient. This is irrespective of the fact that whether the transport is arranged by the buyer or seller. Example: B comes to Rajasthan and purchase some goods from A and told to send the goods to Delhi, A takes the bilty in his own name and send the goods to B in Delhi. In the given case, POS would be Delhi, as effective control of the goods to B is handed in Delhi. 10(1)(b) Goods are delivered by the supplier to a recipient or any other person, on the direction of a third person by way of by way of documents of title to the goods or otherwise It shall be deemed that the said third person has received the goods and the POS of such goods shall be the principal place of business of such person. Example: A in Rajasthan supplies goods to B in Delhi. B in Delhi asks A to send the goods to C in Maharashtra. Therefore, as the goods have been send to C in Maharashtra by A on the direction of B, the POS would be Delhi. 10(1)(c) Supply do
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ce of supply would be: the location of recipient of service. If recipient is not a registered person and address of recipient exists on record then POS would be: the location of the recipient. If the address of recipient does not exists on record, then the place of supply of service would be: the location of the supplier of service. Example: A located in Gujarat receives services at Gujarat from B Located in Rajasthan. A is a registered person under Gujarat GST. In this case POS will be Gujarat. Specific Rules – Section 12(3) to (14) of IGST Act, 2017:- Section of IGST Act Situation Place of Supply 12(3) Place of supply directly in relation to an immovable property directly in relation to an immovable property, including services provided by architects, interior decorators, surveyors, engineers and other related experts or estate agents, any service provided by way of grant of rights to use immovable property or for carrying out or co-ordination of construction work; or by way of lodgi
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be Kolkata for accommodation service by hotel and Beauty treatment as it is an ancillary service to the accommodation 12(4) Restaurant and catering services, personal grooming, fitness, beauty treatment, health service Where the services are actually performed 12(5) Services in relation to training and performance appraisal If recipient is registered than location of such person, Otherwise Location where the service actually performed. Example: A located at Gurgaon provides training at Bhopal to employees of B Ltd, which is registered at Mumbai. POS will be Mumbai. If B Ltd is not a registered than POS will be Bhopal. 12(6) Services provided by way of admission to a cultural artistic, sporting, scientific, educational, or entertainment event or amusement park or ancillary service Where the event is actually held or where the park or such other place is located. 12(7) Service provided by way of- Organisation of a cultural, artistic, sporting, scientific, educational or entertainment ev
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over for their transportation Example: J is registered person in Jaipur. He sends some goods from transportation from Kolkata to Mumbai. POS would be Jaipur. However if J is not registered person than POS would be Kolkata. 12(9) Passenger transportation service If recipient is registered than location of such person, otherwise The place where the passenger embarks on the conveyance for a continuous journey. If the point of embarkation is not known at the time of issue of right to passage, then provisions of section 12(2) shall apply. Return Journey shall be treated as a separate journey. In the below examples recipient is unregistered Example:1 Journey from Mumbai-Delhi-London-Delhi: POS shall be Mumbai Example:2 Journey from London-Mumbai-London: POS shall be London Example:3 A books two tickets. 1st is Mumbai-Delhi and 2nd is Delhi- Mumbai for Return. In this case for 1st case POS is Mumbai and for 2nd Delhi. 12(10) Services on board a conveyance, including a vessel, an aircraft, a
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per the records of the supplier, Otherwise The location of supplier Proviso to section 12(11) Mobile connection for telecommunication and internet services provided on pre payment through electronic mode or internet Banking Location of the recipient of service on record of the supplier of service 12(12) Banking and other Financial services including stock broking Services Location of the recipient of services on the records of the supplier of services. Otherwise the location of the supplier of services. Example: A in Mumbai has a bank account with SBI. The address on record available with bank is in Delhi. POS is Delhi 12(13) Insurance Services If recipient is registered than location of such person, otherwise location of the recipient of services on the records of the supplier of services. Example: X is person located at Delhi and taken an insurance policy from a company based in Kolkatta. If A is registered then POS would be Delhi. Otherwise location of the recipient of services on
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c Rules as per section 13(3) to 13(13) are as below: Section of IGST Act Situation Place of Supply 13(3)(a) Services supplied in respect of goods that are required to be made physically available by the recipient of service to the supplier of service, or to a person acting on behalf of the supplier of service in order to provide the service. Location where the services actually performed Note: The basic requirements of a service to be covered under this rule is that the goods temporarily come into the physical possession or control of the service provider and without this happening, the service cannot be rendered. Thus the service involves movable objects or things than can be touched, felt or possessed. Example: X sends the goods to Y for repairing of the said goods. The goods are again handed over to X by Y after repairing. The POS would be where the services are performed by Y. Ist Proviso to 13(3)(a) This clause shall not apply in the case of a service supplied in respect of goods
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ion work, including architects or interior decorators Place where the immovable property is located or intended to be located. 13(5) Services supplied by way of admission to, or organization of, a cultural, artistic, sporting, scientific, education, or entertainment event, or a celebration, conference, fair, exhibition, or similar event, and of services ancillary to such admission or organization POS shall be the place where the event is actually held. Example: X comes from UK and attends a conference at Delhi. POS would be Delhi. 13(6) Where services referred in above 13(3), 13(4), 13(5) is supplied at more than one location, including a location in the taxable territory Location in the taxable territory 13(7) Where services referred in above 13(3), 13(4), 13(5) is supplied at more than one state POS of such services shall be taken as being in each of the states in proportion to the value of services so provided in each state 13(8) (a) services supplied by a banking company, or a fina
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ation service Where the passenger embarks on the conveyance for a continuous journey Example: X resident of UK, goes to UK from India. He embarks from India. POS would be India. Section 2(3) of the Act defines the expression continuous journey as a journey for which a single or more than one ticket or invoice is issued at the same time, either by a single supplier of service or through an agent acting on behalf of more than one supplier of service, and which involves no stopover between any of the legs of the journey for which one or more separate tickets or invoices are issued. The term stopover means a place where a passenger can disembark either to transfer to another conveyance or break this journey for a certain period in order to resume it at a later point of time. 13(11) Service provided on board a conveyance during the course of a passenger transport operation, intended to be consumed while on board First scheduled point of departure of that conveyance for the journey 13(12) On
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Goods and Services Tax – GST – By: – CA.Tarun Agarwalla – Dated:- 19-8-2017 – 10 Step Approach to GST Compliances We are all waiting for GST for a decade and at this moment while righting this article we are already in the GST regime. The taxation of GST can be sequentially observed in following 10 steps. 1. Is It a Supply? 2. Is it a Good or Services? 3. Is it a Nontaxable or Exempted Supply? 5. Is the supply by a Taxable Person? 6. What is the place of supply? 7. What is the Time of supply? 8. Value of Supply 9. Rate of Taxes 10. Eligible ITC 11. Tax Payable=( Out Put Tax- Eligible ITC) 1. IS it A Supply a. Supply is having a very wide grammatical meaning. It means making available any thing. While in GST we need to follow only such transactions of goods, services or BOTH which are covered by section 7 of the CGST ACT. b. however Supply as per section 7 of the CGST or SGST act bring outs to cover almost all activities in Goods, Services or Both as supply provided i. made or agreed t
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s is that in every steps of tax compliances we need to differentiate the goods and services separately. b. Further as per section 8 of the CGST Act, where in case of composite supply the rate of principal supply would be applicable to full value of composite supply. Composite supply as per section 2 of CGST is when two or more goods or services are present in a bundle. Hence to define the composite supply as goods or services the nature of principal supply might have been followed. c. The Goods and services are having different HSN Code and SAC code. Both were having different tax rates and hence for classification the goods and services to be classified as separate individual items. d. Point of taxation in case of Goods in contrast to point of taxation of services is completely different and differentiation is required. e. Issuance of Invoice in case of Goods in contrast services is completely different and differentiation is required. f. Location of Supplier of Goods and location of
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ds and services needed to be done to evaluate the registration requirement of an recipient. 3. Is it a Non taxable or Exempted Supply?:- tax cannot be levied when the activity even though is a supply but either is non-taxable , or under negative list or a exempted supply. The definition of these three are specifically given and departed from traditional understanding a. Nontaxable supply has been defined as supply which is not leviable. The example could be anything out of preview of Supply as defined under section 7 and five petroleum predicts and liquor for human consumption specially excluded either permanently or for the time being as the case may be. b. Negative list items have been given in Schedule -III which is in similar line of Section 66D of the erstwhile Finance Act, however a very few items were mentioned in the schedule which are not taxable. c. Exempted supply has been defined under CGST Act to include all type of supply of goods or services or Both i. attracting Nil rat
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ices where the E-commerce operator would pay tax who is neither a supplier or nor a recipient. b. Section 2 defines that taxable person is who is either a registered person or liable to be registered. c. Section 22 and section 24 defines when a person liable to be registered. Section 22 gives a blanket minimum exemption limit for registration where as section 24 enumerates a compulsory registration in case of specific conditions d. Section 23 also specifies specific instances where registration is not required. e. Where a person is not registered and also not liable to be registered, he cannot be regarded as a taxable person and hence cannot be Brought under GST law to pay taxes. f. However, there are specific cases where different responsibility has been cast to register under GST to comply certain provisions however the same were not related to output tax liability. The examples are i. Tax Deduction Account number ii. Tax Collection Account number iii. Unique Identification number iv
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location of supplier or location of the recipient is not required per se. c. Were the location of the recipients and the place of supply in different states the credit may not be available to the recipient. However to evaluate the correct place of supply and to denote correct state or union territory code in the invoice as well as the return of GST is the prime responsibility cast on the taxable person. d. It is pertinent to mentioned here that evaluating a wrong place of supply does not amount to any kind of evasion or less payment of taxes as in any way the amount of taxes were same. But the correct evaluation of Place of supply is warranted for the purpose of transferring the tax revenue to the appropriate state or union territory. 6. What is the Time of supply? :- Time of supply is the point of time when the tax becomes payable. In the case of GST, the law has been taken color from the provisions of Finance act and the rule made there under. However, the point of taxation for goods
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be reversed partially. a. A registered person will be eligible to claim Input Tax Credit (ITC) on the fulfillment of the following conditions: i. Possession of a tax invoice or debit note or document evidencing payment ii. Receipt of goods and/or services iii. goods delivered by the supplier to another person in the direction of registered person against a document of transfer of title of goods iv. Furnishing of a return b. Where goods are received in lots or installments ITC will be allowed to be availed when the last lot or installment is received. c. Failure to the supplier towards the supply of goods and/or services within 180 days from the date of invoice, ITC already claimed will be added to output tax liability and interest to pay on such tax involved. On payment to the supplier, ITC will be again allowed to be claimed d. No ITC will be allowed if depreciation has been claimed on tax component of a capital good e. Items on which credit is not allowed i. Motor vehicles and convey
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Goods and Services Tax – GST – By: – CASanjay Kumawat – Dated:- 19-8-2017 – E-commerce related concepts and other provisions are as follows: 1. Electronic Commerce has been defined in Sec. 2(44) of the CGST Act, 2017 to mean the supply of goods or services or both, including digital products over digital or electronic network. Examples: a) In case of supply of goods : www.amazon.com , www.flipkart.com etc. b) In case of services : www.makemytrip.com, www.trivigo.com, www.bookmyshow.com, etc. 2. Electronic Commerce Operator has been defined in Sec. 2(45) of the CGST Act, 2017 to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Examples: a) Flipkart b) Amazon c) Bookmyshow, etc. 3. As per Section 24(x) of the CGST Act, 2017 the benefit of threshold exemption is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them. 4. Section 24(ix) of the CGST Act, 2017
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t, 2017. In such cases tax shall be paid by the electronic commerce operator if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the supplier liable to pay tax in relation to the supply of such services. A similar provision for inter-State supply is provided for in Sec. 5(5) of the IGST Act, 2017. (Refer to Notification No. 17/2017- Central Tax (Rate) and 14/2017- Integrated Tax (Rate) dated 28.06.2017). Example, In case of hotel booking through e commerce operators such as make my trip, trivigo etc, such e commerce operator would be liable to collect and pay TCS to the Government. 6. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them. 7. The e-commerce operator is required to collect an amount at the rate of one (1) percent of the net value of taxable supplies made through it, where the consideration with respect to such s
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ax where consideration with respect to a taxable supply is collected by such e-commerce operator. (Refer to Section 52(1) of the CGST Act, 2017). 11. The e-commerce operator should make the collection during the month in which the consideration amount is collected from the recipient. 12. The amount collected by the operator is to be paid to the government within 10 days after the end of the month in which amount was so collected. (Refer to Section 52(3) of the CGST Act, 2017). 13. The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect of the supplies made by the actual supplier. (Refer to Section 52(7) of the CGST Act, 2017). 14. Every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods
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in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated shall be added to the output liability of the said supplier in his return for the month succeeding the month in which the discrepancy is communicated. The concerned supplier in whose output tax liability any amount has been added, shall be liable to pay the tax payable in respect of such supply along with interest on the amount so added from the date such tax was due till the date of its payment. (Refer to Section 52(10) and Section 52(11) of the CGST Act, 2017). 17. Any officer not below the rank of Deputy Commissioner may issue a notice to the electronic commerce operator to furnish such details within a period of 15 working days from the date of service of such notice. (Refer to Section 52(12), (13) and (14) of the CGST Act, 2017). 18. The sellers supplying goods through e-Commerce opera
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ording to the provisions of Section 52 of the CGST Act, 2017. The TCS will be deducted accordingly. 21. There are cases in which the ECO does not provide invoicing solution to the seller. In such cases, invoice is generated by the seller and received by the buyer without ECO getting to know about it. The payment flows through the ECO. In such cases, Section 52(1) of the CGST Act, 2017 mandates that TCS is to be collected on the net taxable value of such supplies in respect of which the ECO collects the consideration. The amount collected should be duly reported in FORM GSTR-8 and remitted to the Government. Any such amount collected will be available to the concerned supplier as credit in his electronic cash ledger. 22. GST requires a dealer to maintain a consecutive serial number for invoices. If suppliers are supplying from multiple locations, a supplier can have multiple series for the same year, so long as the same series is not used across financial years. Therefore, suppliers may
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