Goods and Services Tax

Question 3 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. When is GST payment to be done by the taxable person? Ans. At the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section 13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situations envisaged and different tax point

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Question 2 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. Who is liable to pay GST? Ans. In general the supplier of goods or service is liable to pay GST. However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Further, in some cases, the liability to pay is on the third person (say in the case of e-commerce operator responsible for TC

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Question 1 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What are the Payments to be made in GST regime? Ans. In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST, going into the account of the Central Government) and the State GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IGST) which will have component

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Question 13 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What are the inclusions specified in Section 15(2) which could be added to Transaction Value? Ans. The inclusions specified in Section 15(2) which could be added to Transaction Value are as follows: a) Any amounts paid by recipient that are obligation of supplier to pay; b) Money value of goods or services provided free or at concession by recipient; c) Royalties and

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Question 12 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. What are the methods provided for determining the value, in terms of draft GST Valuation Rules? Ans. Three methods are prescribed under GST Valuation Rules for determining the transaction value i.e., comparative method, computation method and residual method, which are required to be followed sequentially. Besides, some specific valuation methods have been specified l

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News and Press Release – Dated:- 22-9-2016 – Press Information Bureau Government of India Ministry of Finance 22-September-2016 13:51 IST The Union Finance Minister Shri Arun Jaitley said that infrastructure is key to growth of economy. Shri Jaitley said that an institutionalized forum amongst BRICS countries could serve as a regional knowledge hub with exchange of information facilitated through cloud sharing, and other electronic methods. Shri Jaitley said that projects in transportation sector like Highways, Ports and Railways will be area of mega economic activities as far as infrastructure sector in India is concerned. The Finance Ministery Shri Jaitley further said that investment, both from public and private sector, will be require

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ch as REITS, INVITS, IDFs. He stressed the need for BRICS member countries to share their experiences in financing and delivery of infra projects so that they can collectively move to higher quality and efficiency in the delivery of public services. Earlier in his welcome address, Secretary, Department of Economic Affairs, Shri Shaktikanta Das said that infrastructure financing, especially in clearly demarketed projects is the need of the hour. He said that National Investment and Infrastructure Fund (NIIF) will play a pivotal role especially in infrastructure financing of projects in areas of ports, highways and railways in particular. The Seminar brought together experts from BRICS countries in the field of infrastructure development and

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of Finance, Government of India with the organisational support of Confederatin of Indian Industries (CII). India assumed the Chairmanship of the BRICS in 2016. As part of the run up to the BRICS Summit scheduled for October, 2016, a number of events are being organised. The Seminar is a part of these events and aims at knowledge sharing amongst BRICS Countries on best practices in Public Private Partnerships (PPPs) and catalysing innovative Long-term Infrastructure Financing. The Seminar brought together experts from BRICS countries in the field of infrastructure development and financing and PPPs for exchange of best practices, experiences and expertise. The technical sessions covered the areas of Regulatory Issues and Financing of Infra

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Question 11 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. What are the reasons for doubting transaction value declared? Ans. The reasons have been indicated in Rule 7(b) of the draft GST Valuation Rules. It is:- (i) comparable supplies are at significantly higher value; (ii) transaction is at significantly lower or higher than market value of supplies; and (iii) misdeclaration in parameters like description, quantity, qualit

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When are Valuation Rules applicable? – Question 10 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. When are Valuation Rules applica

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Question 9 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. Whether pre-supply discounts allowed before or at the time of supply are

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Question 8 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. Whether post-supply discounts or incentives are to be included in the tra

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Question 7 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. Can the transaction value declared under section 15(1) be accepted? Ans. Yes, it can be accepted after examining for inclusions in section 15(2). Furthermore, the transaction value can be accepted even where the supplier and recipient are related, provided the relationship has not influenced the price. (Rule 3(4) of draft GST valuation rules) – Statutory Provisions, Acts

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Question 6 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 6 – Q 6. What is to be done if there are certain factors affecting price though th

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Is reference to Valuation Rules required in all cases? – Question 5 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Is reference to V

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Question 4 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. Is contract price not sufficient to determine valuation of supply? Ans. Contract price is more specifically referred to as transaction value and that is the basis for computing tax. However, when the price is influenced by some factors like relationship of parties or certain transactions are deemed to be supply, which do not have a price, it is required to overcome these

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Are there separate valuation provisions for CGST, SGST and IGST and Goods and Services? – Question 3 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Qu

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Question 2 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. What is transaction value? Ans. Transaction value refers to the price actually paid or payable for the supply of goods and or services where the supplier and the recipient are not related and price is the sole consideration for the supply. It includes any amount which the supplier is liable to pay but which has been incurred by the recipient of the supply. – Statutory Pr

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Question 1 – Draft-Bills-Reports – Valuation in GST – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is the value of taxable supply to be adopted for the levy of GST? Ans. The value of taxable supply of goods and services shall ordinarily be the transaction value which is the actually the price paid or payable, when the parties are not related and price is the sole consideration. The MGL further elaborates various inclusions and exclusions from the ambit of transac

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Question 14 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. Let s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017? Ans. The old rate of 18% shall be applicable as services are provided prior to 1.6.2017. – Statutory Provisions, Acts, Rules, Regul

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Question 13 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What will be the time of supply in continuous supply of services? Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion of event. – Statutory Provisions, Acts, Rules,

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Question 12 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. What is time of supply of service in case of tax payable under reverse c

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Question 11 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Suppose part advance payment is made or invoice issued is for part payme

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Question 10 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. Suppose, invoice is not issued and date of payment or date of completion

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What does “date of receipt of payment” mean? – Question 9 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. What does date of receipt of

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Question 8 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. What is time of supply of service when invoice is issued within prescribed

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Question 7 – Draft-Bills-Reports – Time of Supply – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. What is time of supply of service when invoice is not issued within prescri

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