Q. 242 sir financial year 21-22 i am a regular dealer as per sec-9 cgst act. now next financial year 2022-23 we opt composition scheme section 10 cgst if our sales return in month of june-2022 how show in sales return in gst?

Ans. It will be shown as net tax liability in the third table in CMP-08 Form. You will need to provide details such as outward supplies on which tax is payable, including the inward supplies on which tax is payable on a reverse charge and cases of imports. Here, tax liabilities are inclusive of adjustment in relation to advances, credit notes, debit notes or, any rectifications.

Q. 241 Whether GST is applicable on service charges charged by restaurants. please substantiate the answer with relevant notification/circular.?

Ans. As per the Clause (c) of Section 15(2) of Central Goods and Services Tax Act, 2017 provides that: “(c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; ” The above clause can be divided into two parts i.e.

1. Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply.

2. Any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services.

As per the second part of the said clause, any amount which is collected by the hotel/restaurant thus forms part of the price collected by the hotel/restaurant, therefore it has to be included in the transaction value.

Further according to GST law, the value of a supply of goods or services or both will be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related, and the price is the sole consideration for the supply. Thus, according to our point of view, GST is levied on service charge. Till now as such there is no circular or notification issued on this.

Q. 240 If an application filed before AAR authorities is withdrawn suo-moto, would it have an adverse impact on the issue /question offered for determination ? Or it would be considered that the question was never asked for determination ?

Ans. We can withdraw the application filed before the AAR within 30 days of its filing date and it will be considered as there was no application filed.