Ques: 895: My Client engaged in Manufactuing of CR Strips, has sold his car which was used for business purpose on which no ITC was claimed at the time of purchase, Tax is deposited on excess of Selling price over the WDV i.e, on Profit, as per Notification No.8/2018 dated 25.01.2018. The value (Profit) on which tax is deposited is shown as taxable value and balance sale value is shown as exempt sale. Now the GST department is asking for Proportionate ITC reversal for exempt sale. Please guide on the issue.

Ans. Since it’s a new issue no one can say with surety that whether this will be treated as exempted sale or not. Though in our opinion the value determined over and above WDV should be taken as turnover. Since capital goods were sold in earlier regime also but never taken as exempted supply 

Question: 894 A CA professional has been appointed as a legal/ technical/ organisational Expert Advisor to state police under provisions of a state police act vide orders of Director General of Police of that state. CA is receiving professional fees on monthly basis as per the orders after deducting TDS under 194JB by the police department. CA is registered under GST. Whether CA is liable to pay GST or is it exempt?

Ans: It’s taxable as there is no employer employee relationship exist between them

Question: 893 An education institute has received a donation/ grant from a public limited company to conduct research and development. The company will not get any benefit from this R&D. Whether GST is applicable in present case ? Education institute is a trust/ soceity.

Ans: There will not be any GST applicable on this as there is no quid pro quo