Ques: 855: PLEASE ADVISE HOW TO REPLY TO DRC-01 :- WHERE A DEALER HAS TREATED CREDIT NOTE RECEIVED FROM BUYER IN RESPECT OF SALE RETURN AS PURCHASE AND INCREASED THE INPUT INSTEAD OF REDUCING OUTPUT TAX AS THE OUTPUT TAX WAS BECOMING NEGATIVE AND GSTR-3B WAS NOT ACCEPTING NEGATIVE FIGURE DURING THE YEAR 2019-20

Ans: As per Section 34 of the CGST Act, 2017, the Supplier is required to issue Credit note in respect of supplies made by them where the goods supplied are returned by the recipient.  Further, such Supplier is also required to report such Credit note in the GST returns.Accordingly, in the present case, the dealer is required to raise Credit note and report such Credit note in the GST returns.  However, in case value of such Credit note is greater than the value of output invoices for the particular period, in such a situation, the dealer is required to report such Credit note in the GST returns in the month wherein outward invoices are greater than the value of Credit note.

Ques: 854 : If a Tax Payer is registered in GST under Restaurent Services and Charging GST @ 5%. Now, my query is that if it starts to add Icecream in its menu, whether it should charge GST under Restaurent Services @ 5% or seperate GST @ 18% is to be charged on Ice Cream sale.

Ans: It should form part of restaurant services and accordingly GST @ 5% will apply.

Ques 853: Company take apartment for director on rent from unregistered person in GST
Whether GST liability arise If property is residential but used for corporate office purpose then any difference?

Ans: yes it will be taxable under RCM