Ques: 947: A PERSON RENDERS ADVISORY SERVICES TO A PRIVATE LIMITED COMPANY(SUBSIDIARY OF US COMPANY). THE CONSIDERATION RECEIVED BY THE SERVICE PROVIDER IS IN THE FORM OF SHARES OF THE HOLDING COMPANY IN UNITED STATES OF AMERICA (PARENT COMPANY). THE SHARES VEST OVER A PERIOD OF 4 YEARS AND IS EXERCISABLE AT THE END OF 4TH YEAR. HOW DOES VALUATION AND TIME OF SUPPLY OF SERVICE APPLY IN THIS CASE???

Ans: Though this is a fact based query and one need to refer agreement of the same but as a concept the gst is payable on accrual basis rather on receipt. Since the services rendered to Indian subsidiary the same will be taxable as well. As far as valuation is concerned the value will be the FMV on the date of vesting of shares

Ques: 946: The Rule 88B has been amended to provide that no interest shall be charged on the amount available in GST cash Ledger for delay in filing GSTR 3B. However the department is of the view that the amended Rule should be applicable wef 10th July 2024 and is demanding interest u/s 74 for FY 2017-18 to 2021-22. What should be the suitable reply regarding applicability of amended Rule 88B for FY 2017-18 to 21-22

Ans: Since the law was amended not retrospectively, we need to stress upon the intent of legislation and in that scenario Malafide intention can not be there. Accordingly you should fight that section 74 should not be invoked

Ques: 945: My client is having two different GSTIN one in Punjab & other in Haryana he is sending goods from Punjab to Haryana on delivery challan for branch transfer is it valid to send interstate goods on delivery challan.

Ans: You need to issue invoice for inter state movement of goods even if it is to branch transfer