Q. 499 My client is builder. He is constructing 10 residential duplexes on his own land. He has not sold any of the duplex before complition. He is not liable to pay tax under RCM for services of transportation or advocate. he does not want to sale any of duplex before complition. He has not received any advance or deposite from any purchaser. Is it mandatory for him to apply for registration under GST ? Is criteria of 80% inward supply should be from registered dealer is applicable on him?

Ans. As per section 23, persons engaged exclusively in the business of supplying goods/ services/ both wholly exempt from tax are not liable to be registered. 

Q. 498 GST ANNUAL RETURN 9 IS APPLICABLE FOR TURNOVER MORE THAN 2 CRORES. IS IT COMPULSORY TO FILEE ANNUAL RETURN 9 FOR BRANCH IF BRANCH TURNOVER IS LESS THATN 2 CRORES OR NIL TURNOVER ?

Ans. Yes, you are required to file an annual return. 

Q. 497 This query relates to a social club . The club kitchen is let out to an independent caterer who is preparing the food and issuing bills on his behalf and collecting the proceeds thereof. The club also has a Bar which is run by the club itself and the billing is done by the club and receipts collected by the club. In nutshell the liquor bar receipts and incidental income is shown as receipts by the club whereas the receipts pertaining to food sold in the club premises is accounted for by the independent caterer who is also registered under GST . Now the club has started issuing a CASH CARD which is adjusted both against the food bill as well as the Bar bill of the members . The amount received against food bills through cash card is reimbursed to the independent caterer and not accounted for in the books of the club. The food bills are still issued by the caterer but the money is collected by the club on behalf of the caterer. This cash card can also be used to pay the monthly subscription fee of the club. Now my queries are as follows:- 1) Whether the amount of food bill collected by the club through cash card and reimbursed to the caterer will attract GST in the hands of the club ? Can it be termed a taxable service provided by the club to the caterer or as a PURE AGENT SERVICE ? 2) Any un-adjusted amount received through Cash Card and credited in the account of the member whether attracts GST ? Can the department take the plea that the unadjusted amount received against cash card is an advance received against the membership fee of the club, the club being a provider of services ?

Ans. We need to see who is issuing the invoice for the food bill. If club then the supplier of service/food will be club and no pure agent principal will apply. If vendor is issuing invoice and club is only collecting money to pass through then they are pure agent. Rest of the aspect need to take care For second the amount if refundable then no gst will be leviable else it will be