Q.575 The publisher is liable for payment of RCM under Serial No. 9A of N.N 22/2019 CT(Rate). Now the publisher is supplying printed books which do not attract any tax and therefore he has not been registered under the Act by virtue of Section 23 being a person engaged exclusively in the business of supplying goods or services or both that are wholly exempt from tax. Questions 1. Now, is the author of the book required to collect tax on royalty received from the publisher, if the author is registered under GST? Or 2. Whether the liability to pay RCM rests with the publisher and would he be required to take compulsory registration? 3. Whether the author is required to report the royalty receipts in GSTR-1 with RCM flag marked positive for a publisher not registered under GST?

Ans. 1. Yes, 2. If author is a normal GST taxpayer, then publisher not required to pay tax under RCM. 3. Outward taxable supply attracting reverse recharge is to be reported in GSTR-1. 

Q. 574 A registered dealer composite scheme period from -01-7-17 to 31-03-2019 after dealer conversation to regular scheme. sales turnover rs:45 lacs show in returns.but scrutiny of returns by gst department after actual turnover rs:80 lacs found. Question: Gst department calculation of tax rate applicable composition (1 precentage) or commodity wise (normal rate) applicable ?

Ans. You are required to understand the turnover calculated by the GST department. If there is a wrong computation of turnover, then the normal GST rate will be applicable.

Q. 573 Product Name : Bread Crumbs Request you to clarify under which HSN code the above mentioned product shall be classified.

Ans.You can use HSN 1905.