Previous Solved Query

Q.88 A Delhi registered sub-contractor providing composite contract / interior decoration services in relation to a show room construction in Delhi , to a UP based company . The place of supply as per sec 12(3) should be Delhi in my opinion & CGST/SGST should be charged. Party is insisting on IGST . Please clarify.
Ans. As per section 12(3), place of supply in case of services provided directly in relation to an immovable property being interior decoration would be the location of the immovable property.
In the above case, interior decoration services have been availed for the show-room which is being constructed in Delhi, therefore place of supply would be Delhi and CGST/SGST has to be discharged.


Q.87 Can we take input tax credit on purchase of commercial vehicle is that vehicle only use for supplying of our goods.
Ans Input tax credit can be claimed on purchase of commercial vehicle used for transportation of goods if other conditions as per section 16(2) have been fulfilled.


Q.86 One of my client received notice for payment of interest for late filing of 3B return from July 17 to Oct17. Is there any notification, circular or any other way by which we can avoid payment of interest
Ans As per GST notifications issued, some relief was granted by the government regarding late fee and penalty but there was no relief with respect to payment of interest from July 2017 to October 2017. Further, in 39th GST council meeting held on 14th March 2020, recommended interest to be charged on the net cash tax liability w.e.f. 01.07.2017.


Q. 85 The dealer has undertaken re-development of residential property, earlier purchased TDR on which GST @ 18% was charged. Now he does not want TDR and hence intends to sale to another builder doing residential project. Is the seller of TDR liable to charge GST @ 18% ?
Ans Supply of TDR would attract GST at the rate of 18% both at the time of purchase and sale. Hence, the seller of TDR would charge GST @ 18%.
Further, ITC credit of the above transaction would be available after fulfilling the eligibility conditions given u/s 16(2).


Q.84 Can we take ITC by exchange of goods instead of payment to the supplier of goods?
Proviso of Section 16(2) (d) of CGST Act , 2017 deal with eligibility and conditions for taking ITC which reads as :
“——–provided also that the recipient shall be entitled to avail of the credit of input tax on PAYMENT MADE BY HIM of the amount towards the value of supply of goods or services or both alongwith tax payable thereon”
Is payment made means consideration and not exchange of goods
Ans As per the definition of consideration given under section 2(31), consideration can be in the form of monetary or non- monetary payment made or to be made, for the supply of goods or services.
Yes, ITC can be claimed if the eligibility conditions to obtain u/s 16(2) have been obliged.


Q. 83 Sir I m filling gstr 4 my purchase after adjusting credit note is 376729.80rs inclusive gst and my sale is 548615.00
I have also unregistered purchase but I have no record of unregistered purchase is unregistered purchase mandatory to show I have no pan detail of party please help me in this regard as soon as possible
Ans The details regarding inward supplies received from an unregistered supplier is mandatory to be reported under Table 4C of GSTR-4. The columns mandatorily required to be filled are :-
• Place of supply
• Supply type
• Taxable value
• Rates
Further, as per GST offline utility pan details are not mandatory.


Q.82 Whether GST would be leviable on personal guarantee given by directors since they are deemed to be related persons. What about the guarantee given by relatives of directors?
Ans As per para 2 of the schedule I, the supply of goods or services or both between two or more related persons without consideration made in the course of furtherance of business would be treated as supply.
In the above case, directors are related persons and service of providing personal guarantee would fall under the term ‘supply’, hence GST to be leviable.
If personal guarantee is provided as per the terms of employment then it would be qualified under para 1 of schedule III and not to be treated as supply then GST would not be leviable.


Q. 81 WE HAVE APPLIED IN COMPOSITION BUT IT IS SHOWING IN REGULAR AND IT IS REQUIRING OPTION FOR MONTHLY AND QUARTERLY . WE HAVE LAUNCHED A GRIEVANCE BUT ALL IS VEIN, WHENEVER SEARCH IN OPT OUT COMPOSTION BY GSTIN IT IS SHOWN NO RECORD FOUND SHOWN
Ans In the GST certificate, type of registration is different from type of tax payer. Both Regular taxpayers and Composite dealers come under Regular registration only.
So, your certificate shows you that you are under regular type of registration but you might be either regular tax payer or Composite Dealer.
However, if the error still persists, opt in for the composition scheme at the beginning of the financial year as composition scheme cannot be opt out at any time during the year.


Q.80 WE ARE RENDERING SERVICES AS A INTERMEDIARY TO OUR FOREIGN CLIENTS AND CHARGING 18% GST, WHETHER GST WILL BE APPLICABLE ON GAIN ARISING FROM FOREIGN EXCHANGE FLUCTUATION ON THE SERVICES RENDERED
Ans Gain on exchange of foreign currency is a part of money. Since money is neither included in the definition of goods nor services, hence GST not to be levied on gain on foreign exchange.


Q.79 Where shall Supply made to merchant exporter i,e @ 0.1 % , be reported in GSTR 1 & GSTR 3B as its not deemed export under GST .
Ans As you have mentioned, the outward supply is not deemed export then supply made to merchant exporter to be treated as normal B2B supply, thus in GSTR-1 details of supply made to merchant exporter to be shown under Table- 4A.
GSTR 3B contains summary of outward supplies, inward supplies liable to reverse charge, eligible ITC, payment of tax etc. Thus, it does not require invoice-wise data of outward supplies. Hence, it would be shown under Table- 3.1(a)- Outward Taxable Supplies.


Q. 78 If Mr. A make sale to Mr B for Rs. 100000+18000(GST) and after sale Mr. A give discount to Mr. B by credit note of Rs.10000, but GST reversal not made. Now product cost to Mr. B of Rs. 90000 and Mr. B sold its product for Rs.95000+17100 (GST). Mr. B claim Input of Rs. 18000 and not paid in cash and Rs.900 still shown in credit ledger or can use for other sale. In that case profit shown in books but still Mr. B not paying GST in cash. Even excess balance in credit ledger. Is Mr. B need to pay 1800 GST (on Rs.10000) even not reverse by Mr. A.
Ans Commercial credit note is not governed under GST law and is issued only for the value of discount/ reduction in value of the supply, without any GST.
Post supply discounts are governed by the provisions of clause (b) of sub-section (3) of section 15 of the CGST Act, discounts that are given after supply is made and are allowed as deduction from the value of supply if the following two conditions are satisfied: –
1. Discount is as per existing agreement, and
2. Proportionate ITC is reversed by the recipient.
If the above conditions are not satisfied, commercial credit note can be issued.
In the above case scenario, credit note given of Rs. 10,000/- is termed to be commercial credit note. And Mr. B is not required to reverse any ITC.
However, the subsequent transaction of Rs. 95000 is inconsistent w.r.t previous transaction because of not declaring GST credit note and can lead to litigation.


Q. 77 Is it required to generate e-way bill in case unregistered buyer cause the movement of goods and if yes, reference of particular legal provision?
and also intent of second proviso to sub rule (3) of rule 138 of CGST Rules.
Ans Under GST regime, as per sub-rule (2) of rule 138 of CGST rules, if goods are transported by the registered person whether in his own conveyance or hired one or public conveyance, by road, the registered person shall have to generate the e-way bill.
However, if the sub-rule (2) is not followed then sub-rule (3) comes to place.
Coming to second proviso to sub rule (3) of rule 138 of CGST Rules, if the movement is caused by unregistered person either in is own conveyance or a hired one then either unregistered person or the transporter may generate the e-way bill in the manner prescribed.

Yes, e-way bill is required to be generated in case the movement of goods caused by unregistered person.


Q. 76 Is it required to generate e-way bill in case unregistered buyer cause the movement of goods and if yes, reference of particular legal provision?
and also intent of second proviso to sub rule (3) of rule 138 of CGST Rules.
Ans Under GST regime, as per sub-rule (2) of rule 138 of CGST rules, if goods are transported by the registered person whether in his own conveyance or hired one or public conveyance, by road, the registered person shall have to generate the e-way bill.
However, if the sub-rule (2) is not followed then sub-rule (3) comes to place.
Coming to second proviso to sub rule (3) of rule 138 of CGST Rules, if the movement is caused by unregistered person either in is own conveyance or a hired one then either unregistered person or the transporter may generate the e-way bill in the manner prescribed.

Yes, e-way bill is required to be generated in case the movement of goods caused by unregistered person.


Q. 75 HSN wise sale in GSTR1 is net of Credit note or total outward supply ??
Ans In respect of GSTR-1, HSN wise summary of outward supplies is required under Table 12, net outward supplies have to be shown. This is done to match the outward supplies and credit notes shown in the above tables of GSTR-1. 


Q. 74 Sir I have switched to composition scheme from regular scheme now I want to know how can I download my composition certificate
Ans In respect of downloading composition certificates, please follow the below steps:-
1. Login to your account at https://www.gst.gov.in
2. Go to services
3. Then click on User services
4. Open View/Download Certificates

73 Whether Supply of Exempt Goods ( i,e Books ) through e commerce operator , Registration is compulsory ?

Ans. As per the Section 24(ix) of the CGST Act, 2017 “persons who supply goods or services or both, other than supplies specified under sub-section (5) of Section 9, through such electronic commerce operator who is required to collect tax at source under Section 52”; therefore in case E-Commerce Operator is required to collect TCS, the actual supplier is required to take mandatory registration otherwise not.

Whereas if we refer Section 52 of the CGST Act, 2017 which say as “Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator. It is explicit from the given provision that E Commerce Operator is required to collect TCS only in case of taxable supplies and not in case of exempted supplies.

Hence, in case the primary supplier is supplying exempted goods, E-commerce operators shall not collect TCS and therefore provisions of Section 24(ix) shall not apply. In other words, mandatory registration is not required in case of suppliers supplying exempted goods through E Commerce Operator.


72 Supplier is registered in Delhi.
Receiver is registered in Delhi
PoS is in Chennai
IGST is being charged on the Tax Invoice.

Will the Receiver be eligible for availament of ITC for the above IGST, where PoS is in different state.

Ans. This is one of the most contentious questions. Since, GST is a destination based tax and therefore tax goes to the state to which place of supply belongs.

 

Therefore, in case the place of supply is different from the state of registration, the credit should not be allowed. This issue was also discussed in the below advance ruling;

Storm Communications Private Limited dated 28-01-2019


71 AS I GOT TO KNOW THAT THERE IS SOME KINDA CIRCULAR WHERE IT IS MENTIONED THAT GST ON WARRNTY SHOULD NOT BE PAID BY THE DEALER KINDLY LET ME KNOW, IF YOU HAVE ANY OTHER INFORMATION REGARDING THIS KINDLY LET ME KNOW

Ans. We are made to understand that you have supplied some material or services under warranty as promised at the time of principal sale. Now, you have ambiguity whether GST is applicable to such supplies under warranty?

It is clear that GST is applicable on the supply in lieu of consideration and when the goods or services are supplied under warranty, they are supplied without any consideration. Therefore there is no question of the applicability of GST on supplies under warranty.

There are advance rulings available on this issue. For reference as sought in the matter of South Indian Federation of Fishermen Societies (GST AAR Karnataka) where it was pronounced that as:

  1. Whether GST leviable on supply of materials and labour charges incurred during the warranty period, free of cost.

Answer: The provision of material and labour during warranty period without consideration (free of cost) does not come under the purview of supply in terms of Section 7 of the CGST Act, 2017 and no GST is leviable in such free of cost replacements/ labour services.

Further also, in sectoral FAQ’s issued by CBIC can be referred as follows:

S. No. Question Answer
1 What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit? As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced.
2 What is the procedure/documents required for sending free replacement to the customers at free of cost? Where free replacement is provided to the customers without consideration under warranty, no GST is chargeable on such replacement. In such cases goods may be sent on delivery challan as provided in rule 55 of the CGST Rules, 2017.

70 Is GST Registration mandatory for Export of Service even if Turnover is less than threshold limit i.e. 20 lakhs ? 

Ans. It is mandatory to take GST registration in case the supplier is engaged in Inter-Supply. Supplier includes supplier of goods or service or both.

However, in order to provide relief to small service providers from obtaining the mandatory GST registration, a Notification No.10/2017-Integrated Tax was issued. By virtue of this notification, in case a service provider supplying inter-states services but turnover is below the threshold limit of Rs. 20 lakhs/10 lakhs for specified states, it is not mandatory to take the GST registration.

Therefore, in the given case too, the supplier is engaged in inter state supply of services I.e. export of services, therefore there is no need for mandatory registration.


Q.69 Came to know that latest GST council has suggested for GST on hospital room rent above Rs. 5000, without ITC.

My queries are
1. Pls share notification for the same
2. Without ITC means what, is it for consumer that he cant take credit of ITC on room rent or any thing else.
3. Can an insurer, who ultimately bears that bill, will be able to take credit of this.

Ans. Please find below the replies to your query:

Notification is yet to be issued.

Apparently, Input Tax Credit is available to the registered recipient however it is subject to the provision of Section 16 & 17 of the CGST Act, 2017.

It should be allowed primarily, however clarity can be provided once the detailed notification is issued.


68 Dear sir.
One of my client has exported goods in the month of dec 2017 by paying 5 percent gst instead of 28 percent which is actually applicable.
And he took refund for that amount , as it was export transaction.
Now in the year Oct 2021 , superintendent has passed an order to pay the remaining 23 percent.
Now the ball is in the court of commissioner, I met him and explained the revenue neutral effect by explaining whatever paid may have been recd back by us as refund.
sir said give me a base to support your revenue neutral effect so that I can take decision in favour of assessee.
Please let me know any strong ground to avoid that tax here.

Ans.There are a number of judgements available on revenue neutrality. However, we will suggest you take a professional opinion on this matter. 


Q.67 under expansion project we have issued PO to the building contractor for construction of factory building. PO is on works contract basis. Can I take ITC on GST paid to the contractor

Ans. In accordance with the provisions under Section 17(5) of the CGST Act, 2017,

(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation– For the purposes of clauses (c) and (d), the expression -construction includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

Therefore in both the cases I.e. input tax credit on construction services as well as works contract service are not allowed. Here, works contract service is not used for further supply of works contract services, hence credit shall not be allowed.


66 Exempt goods per GST no llena must ha kya 

Ans. As per Section 23 of the CGST Act, 2017:

(a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;

Therefore, in case  you are not supplying goods or services or both which are taxable and exclusively dealing in exempted goods or services or both, then there is no requirement to take GST registration.


Q.65 In case of bill to ship to concept, we know 3 parties are involve in transaction. To maintain business secrecy original buyer does not want the ship to party know the value or from where the material is coming? Can you suggestion what is best way to generate eway bill to maintain secrecy among all three parties.

Ans. Where there are 3 parties involved and keeping in mind the secrecy of rates, any of the parties can issue E Way. The situation can be analyzed as:

 In a typical “Bill To” & “Ship To” model of supply, there are three persons involved in a transaction, namely:

  • “A”is the person who has ordered “B”to send goods directly to “C”.
  • “B” is the person who is sending goods directly to “C”on behalf of “A”.
  • “C”is the recipient of goods. In this complete scenario two supplies are involved and accordingly two tax invoices are required to be issued:
  • Invoice-1– which would be issued by “B” to “A”.
  • Invoice-2- which would be issued by “A”to “C”.

 

This issue was also clarified by the department in its press release dated 23rd April 2018, it was stated that any one can issue E way Bill either by the ultimate supplier “B” while sending goods to the customer “C” on instruction of primary supplier “A”. The possible case are stated below for understanding:

 Case -1: Where e-Way Bill is generated by „B‟, the following fields shall be filled in Part A of GST FORM EWB-01:

 

1 Bill From In this field details of „B‟ are supposed to be filled.
2 Dispatch From This is the place from where goods are actually dispatched. It may be the principal or additional place of business of “B”
3. Bill To In this field details of „A‟ are supposed to be filled.
4. Ship To In this field the address of „C‟ is supposed to be filled.
5. Invoice Details Details of Invoice-1 are supposed to be filled

 Case -2: Where e-Way Bill is generated by “A”, the following fields shall be filled in Part A of GST FORM EWB-01:

1 Bill From In this field details of “A” are supposed to be filled.
2 Dispatch From This is the place from where goods are actually dispatched. It may be the principal or additional place of business of “B”
3. Bill To In this field details of “C” are supposed to be filled.
4. Ship To In this field the address of “C” is supposed to be filled.
5. Invoice Details Details of Invoice-2 are supposed to be filled

It is further suggested to take a written opinion  on this issue, if required for better clarity.


64 The registered person has correctly prepared and filed GSTR-1 for the tax period JULY 2021. BUT 3B WAS NOT COORECTYLY FILED. The value of outward supply and output tax stated excess by Rs. 3606187 & 180305 respectively. No any correction was made regarding this error up to march2022. not correcting this error may cause loss of Rs. 180305. Whether refund can be claimed in terms of circular no26/26/2017? if yes which form should be used for claiming refund? alternatively whether such output tax can be adjusted in 3b of tax period may 2022?

Ans. You can take the benefit of clarification given in the circular, though the circular speaks about the adjustment in the subsequent return GSTR-1 or GSTR-3B as the case may be.

Further, also GST provision provides for the rectification in reporting till the 30th September (now amended to 30th November) or annual return whichever is earlier.

Therefore, you may adjust the liability in the current financial year GSTR-3B but before the due date of adjustment and a reconciliation can be provided if sought by the department.

It is to be noted that the department may take the clarification in a stringent manner and can deny the adjustment benefit taken in the current year and not in subsequent return.

Alternatively, you can file a refund application vide RFD-01 stating the option of excess payment of tax category.


63 Is Input Tax Credit available on purchase of Transformer?

Is there any decided case law or advance ruling in the favour or against the above?

Ans. The input tax credit is available to the recipient on goods or services which are used or intended to be used in the course or furtherance of his business.

Further, the credit shall not be allowed in case it is specifically denied to be availed under Section 17(5) of the CGST Act, 2017.

Therefore in your case, apparently it seems that there is no such restriction on the availability of input tax credit on the transformer. However, for further checking we need to understand the nature of business activity where such a transformer shall be used.


62 Rule violation under rule 96(10) of CGST act
——————————————————————-
In response to demand letter from Asst Commissioner, Tuticorin customs, we wish to pay the IGST on imports customs duty which we had not done as it was imported under advance licence for the year 2020-2021 and submitted a reply for the same to Asst Commissioner, Tuticorin Customs in Feb 2022 to accept to pay the IGST on imports . But the AC,Customs has not replied on this so far. Since we are concerned about the interest accrual if any, we do not know, how to take this forward.

We are ready to pay IGST on imports customs duty to satisfy the rule 96(10), but the customs has not given its consent/directions/procedure to make the payment. Pl. advise us how we can proceed further on this matter.

Ans. This is a very subjective matter and needs proposal analysis of the facts and figures.

Firstly, if you want to go for the refund of IGST, then you are supposed to pay the amount on imports but availability of Input Tax Credit will be in question in the light of timelines for the availment of Input Tax Credit on imports. If you are not getting reply form the department, it  depends on the question you have raised in the reply submitted wherein you have accepted to pay the demand.

Secondly, if you continue to avail the benefit under advance licensing, in that case you can’t get for the refund under export with payment of duty, if any refund granted will be recovered by the department.

In case you have any further query, do let us know.

It is also advised to take a detailed opinion to have better clarity.


61 SIR, PLEASE TELL THE RATE OF DALIA NON-BRANDED AND ITS HSN CODES. WHETHER IT SHOULD BE COVERED IN 1101,110311

Ans. Chapter 11 of the Custom tariff is about “Products of the Milling Industry; Malt; Staches; Inulin; Wheat Gluten”

HSN 1103 bifurtaes cereal groats, meal and pellets on the basis whether the products bears a brand name or not.

Non-branded Dalai will fall under 110311 taxable @ NIL rate , whearas branded Dalai will be taxable @ 5%.


60 A client has received notice u/s 74 along with DRC-01 in feb’22 in which he has been demanded whole ITC available in Credit ledger. His registeration was cancelled in dec 21 on account of wrongful availment of ITC of 516000 of FY 17-18 and 18-19 of one defaulting supplier. Now, how to calculate interest as per section 50 and penalty as per section 74. Also please guide next course of action to be taken

Ans. In relation to your query pertaining to Interest under section 50 and penalty under section 74 of the CGST Act, please find below the respone:

As per sub-section (3) of section 50, where the input tax credit has been wrongly availed and utilised, the registered person shall pay interest on such input tax credit wrongly availed and utilised, at such rate not exceeding twenty-four per cent. as may be notified by the Government.

Further as per section 74(8), any person chargeable with tax but before service of notice under sub-section (1) of section 74, is required to pay the said tax along with interest payable under section 50 and a penalty equivalent to fifteen per cent.

As per section 74(8), any person chargeable with tax under sub-section (1) of section 74, is required to pay the said tax along with interest payable under section 50 and a penalty equivalent to twenty-five per cent, of such tax within thirty days of issue of the notice.

As per section 74(11), any person served with an order issued under sub-section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent, of such tax within thirty days of communication of the order.

Otherwise as per Section 74(1), penalty equivalent to 100 percent of the tax specified in the notice shall be levied.


Q.59 Whether animals like Goat, Sheep, Chick, when sold after Cutting & Frozen (i.e after making it marketable from primary market) can be said to be covered in definition of Agricultural Produce?

Ans. As per NN 12/2017, agricultural produce is defined as:

“agricultural produce” means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market;

It is evident from the definition that agricultural produce includes the rearing of animals except for horses, on which if any processing is done then it should not alter the essential characteristics but only makes it marketable for the primary market. If it is so exactly then the same will be covered under agricultural produce.

Further, Chapter 2 of the customs tariff which deals with Meat & edible meat offal can be referred to which broadly categorize it as :

  • Meat – Fresh and Chilled – NIL rate
  • Meat- other than Fresh & Chilled & put up in a unit container & bearing brand name – 5% rate

58 What is the GST rate on fastner ?

Ans. Fasteners are classified under Chapter Heading 9606 and 9607. The rates notified under Chapter Heading 9606 for fasteners with different specifications carries the rate of 18% whereas fasteners under Chapter Heading 9607 with different specifications carry the rate of 12%.

For precise Rate of Tax and HSN, more details would be required.


57 I have sold goods to M/s ABC on 10.03.2022. They have issued Debit note on account of Quality Deduction on 15.03.2022. But they informed me on 14.04.2022. E-invoicing is applicable to me. How shall I Account for it in e-invoicing.

 Ans. As we understand from the facts, the debit note is raised by the recipient of goods and you want to know the treatment in the books of account from the point of view of E Invoicing applicability.

We are of the view that the debit note or credit note for the supplies made shall be issued by the supplier only and not by the recipient. Therefore, you can raise the E-Credit Note to the customer for the quality deduction having the date 14.04.2022 which will eventually reflect in their GSTR-2A.

The debit issued by the customer shall have effect only in ledger accounts only and will not reflect on the portal.


56 My client is a authroized service agent in India and Bangladesh for rendering maintenance service for medical machines in hospitals sold by him as well as by original manufacturer OPTOS (UK).

My client remit warantee fee to Optos (UK) and also for import of parts. Then charge for maintenance charges from OPTOS (UK) for serices rendered to Indian customers of Optos.

Want to know

Taxability of service rendered in India but payment from O/S India.

SAC code,

Place of supply

Rate

Ans. Taxability: Since, the place of supply of repair service is India, it will not qualify for export of services and hence tax will be levied as SGST and CGST.

SAC: 9987

Place of Supply: In case where either location of the supplier or recipient is outside India, in that case the place of supply shall be the place where the goods are actually placed at the time of repair or maintenance.

Rate: 18%


55 we are depositing taxi service on RCM basis, as input is not available when taxi provider charge gst on his bill, now can we take input while we are paying on RCM basis 

Ans. Blocking of Input tax credit is not affected by the fact that the tax is paid on forward charge or reverse charge. Even if a supply attracts RCM, ITC on Motor Vehicles is not allowed under Section 17(5) of the CGST Act,2017 except in case it is used for providing the similar services.


Subscribe

to our newsletter. Please enter your email and press submit.

Menu
en English
X