Q. 227 How GST refund in case of services is to be dealt when BRC / FIRC is received short due to withholding of tax by foreign country. Department proportionately reduces the refund at the time of refund. Please reply.

Ans. In case of export of services, BRC/ FIRC and invoice are the key documents which support refund under GST. Therefore, BRC/FIRC must be collected before sanction of refund of GST.

Q. 226 A Gst registered composite scheme dealer sales turnover rs:12 lacs tax pay for april-june-21 quarter.if July -21 to june-22 quarters dealer non filed composite returns cmp-08. Gst department notice issued details mentioned below for non gst returns filed period. July-to September -21 quarter turnover rs:12 lacs tax +penalty October -december-21 quarter turnover rs:12 lacs tax +penalty January to March -22 quarter sales turnover rs:12 lacs tax +penalty April to june-22 quarter sales turnover rs:12 lacs tax+penalty. Question: Dealer composite tax returns non filed period tax as per notice show amounts or as per books turnover show in CMP -08 returns.

Ans. The aggregate turnover to be declared in the return under composition scheme is to be matched with the turnover present in books. Any differences are required to be reconciled so as to avoid further consequences. 

Q. 225 a) Railway authority charges the company “Maintenance Charges for Sliding” without GST. Sliding is owned by the company. Is GST Chargeable on RCM basis. b) Railway also charges land license fees Is the RCM applicable in both above cases. If yes, please specify relevant notofication, section and circular.

Ans. In terms of notification no. 13/2017- CTR read with section 9(3) of the CGST Act, covered in entry no. 5, services supplied by the Central Government, State Government, Union territory or local authority to a business entity located in the taxable territory are covered under reverse charge. Therefore, GST on the following services namely maintenance charges for sliding and land licence fees to be discharged on RCM. Further, as per notification no. 12/2017-CTR, covered under entry 7, services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover in the preceding financial year does not exceed the limit of INR 20 lacs are exempt. Then exemption would be granted and no GST to be levied on the above-mentioned services.