Goods and Services Tax

A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply
Question 17
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?
Ans. If the service is not linked to the account of person, place of supply shall be Kullu i.e. the location of the s

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A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply
Question 16
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?
Ans. The place of supply shall be the location of the recipient of services on the records of the supplier of services. So Goa shall be the place of supply.
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What should be the contents of the settlement application?
Question 7
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What should be the contents of the settlement application?
Ans. The settlement application should contain full and true disclosure of:
i. tax Liability which has not been disclosed to the proper officer of IGST;
ii. manner of deriving such tax liability;
iii. additional amount of tax which he accepts to be payable;
iv.

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What will be the place of supply for mobile connection? Can it be the location of supplier
Question 15
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. What will be the place of supply for mobile connection? Can it be the location of supplier?
Ans. The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state

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Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply
Question 14
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply?
Ans. In the above case, the place of embarkation will not be available at the time of issue of invoice as the right to

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Who can apply for settlement?
Question 6
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Who can apply for settlement?
Ans As per section 15 of the IGST Act, any taxable person can apply for settlement of a case in relation to which he has been issued one or more show cause notice(s) under the IGST Act and the same is pending before the adjudicating authority or the First Appellate Authority.
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What will be the place of supply if a person travels from Mumbai to Delhi and back to Mumbai
Question 13
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What will be the place of supply if a person travels from Mumbai to Delhi and back to Mumbai?
Ans. If the person is registered, the place of supply shall be the location of recipient.
If the person is not registered, the place of supply for the forward journey from Mumbai to

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What will be the place of supply of goods in respect of transport of goods by courier
Question 12
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What will be the place of supply of goods in respect of transport of goods by courier?
Ans. In case the recipient is registered, the location of such person shall be the place of supply.
However, if the recipient is not registered, the place of supply shall be the place where the g

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What happens when there is difference of opinion amongst members hearing the settlement application?
Question 5
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What happens when there is difference of opinion amongst members hearing the settlement application?
Ans. Section 14 of the IGST Act provides that where the members of a bench of Settlement Commission differ on any point, the decision shall be taken on the basis of the majority opinion

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What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states
Question 11
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states?
Ans. In case of an event, if the recipient of service is registered, the place of supply of se

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What will be the composition of members which will consider/hear settlement application?
Question 4
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What will be the composition of members which will consider/hear settlement application?
Ans. Every application for settlement shall be heard by a bench presided over by the State Chairman and shall consist of two other members. The State Chairman shall be a sitting or a retired judge of a High Co

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The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply
Question 10
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states

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What is the default presumption for place of supply in respect of unregistered recipients
Question 9
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What is the default presumption for place of supply in respect of unregistered recipients?
Ans. In respect of unregistered recipients, the usual place of supply is location of recipient. However in many cases, the address of recipient is not available, in such cases, location of t

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What is meant by a Case under the provisions of Settlement in the MGL?
Question 3
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What is meant by a Case under the provisions of Settlement in the MGL?
Ans. As per Section 11, Case means any proceeding under the IGST Act for levy, assessment and collection of IGST before an IGST officer or before a First Appellate Authority in connection with such levy, assessment or collection of IGST pending

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What is the default presumption for place of supply in respect of B2B supply of services
Question 8
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What is the default presumption for place of supply in respect of B2B supply of services?
Ans. The terms used in the IGST Act are registered taxpayers and non-registered taxpayers. The presumption in case of supplies to registered person is the location of such person. Since the re

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Can tax disputes arising on account of both intra-state and inter-state transactions be settled under the MGL?
Question 2
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Can tax disputes arising on account of both intra-state and inter-state transactions be settled under the MGL?
Ans. In the Model GST Law, the provisions for Settlement Commission are incorporated only under the IGST Act (sections 11 to 26). This implies that cases cannot be s

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What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle
Question 7
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle?
Ans. In respect of goods, the place of supply shall be the l

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What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person
Question 6
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person?
Ans. It would be deemed that the third person has received the goods and the place of supply of such goods shall be the prin

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What would be the place of supply where goods are removed
Question 5
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What would be the place of supply where goods are removed?
Ans. The place of supply of goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. (Section 5(2) of IGST Act)
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Statute, statutory provisions legislation, law, enactment, Acts, R

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What are the basic objective of Settlement Commission?
Question 1
Bill
Settlement Commission
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What are the basic objective of Settlement Commission?
Ans. The basic objectives of setting up of the Settlement Commission are:-
i. to provide an alternate channel for dispute resolution for the taxpayer;
ii. to expedite payment of GST involved in disputes by avoiding costly and time consuming litigation process;
iii. to pr

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What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions
Question 4
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions?
Ans. In respect of B2B transactions,

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What proxies or assumptions in a transaction can be used to determine the place of supply
Question 3
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What proxies or assumptions in a transaction can be used to determine the place of supply?
Ans. The various element involved in a transaction in services can be used as proxies to determine the place of supply. An assumption or proxy which gives more appropriate result than others

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Why are place of supply provisions different in respect of goods and services
Question 2
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Why are place of supply provisions different in respect of goods and services?
Ans. Goods being tangible do not pose any significant problems for determination of their place of consumption. Services being intangible pose problems w.r.t determination of place of supply mainly due to following factors:
(i) The manner of delivery of service could be altered easily. For example telecom service could change from mostly post-paid to mostly pre-paid; billing address could be changed, billers address could be changed, repair or maintenance of

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inate in one state and end in the other state. Similarly a copy right for distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme is broadcasted across the country at the same time. An airline may issue seasonal tickets, containing say 10 leafs which could be used for travel between any two location in the country. The card issued by Delhi metro could be used by a person located in Noida, or Delhi or Faridabad, without the Delhi metro being able to distinguish the location or journeys at the time of receipt of payment;
(v) Services are continuously evolving and would thus continue to pose newer challenges. For example 15-20 years back no one could have thought of DTH, o

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Can the AAR & AAAR order for rectification of mistakes in the ruling?
Question 15
Bill
Advance Ruling
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Can the AAR & AAAR order for rectification of mistakes in the ruling?
Ans. Yes. Section 101 of the Act gives power to AAR and AAAR to amend their order to rectify any mistake apparent from the record within a period of six months from the date of the order. Such mistake may be noticed by the authority on its own accord o

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What is the need for the Place of Supply of Goods and Services under GST
Question 1
Bill
Place of Supply of Goods and Service
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the need for the Place of Supply of Goods and Services under GST?
Ans. The basic principle of GST is that it should effectively tax the consumption of such supplies at the destination thereof or as the case may at the point of consumption. So place of supply provision determine the place i.

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