Q. 155 Whether a firm of tax Practitioners and business consultants engaging in maintennance of books of accounts, preparing financial statements and filing returns are covered under the RCM list & if not whether ITC can be availed by client Example : XYZ ACCOUNTANTS & CONSULTANTS are a Prop. firm having valid GSTIN & ABC Constructions & Scrap Merchants are their client . the client pays a monthly 10,000 rupees ( excluding gst) , so, now the question arises whether the Accounting firm will collect 18% GST or the construction firm will pay GST under the RCM Further, if the accounting firm is the one to collect taxes from client , can the client claim ITC of the same ?

Ans. The above services are not covered under RCM and clients can proceed to claim ITC on the above services. However, it is assumed that it doesn’t not include any legal services provided by advocates or senior advocates. 

Q. 154 A Gst registered pharmacy store regular scheme dealer business closed dt:31-07-22 and cancel of gst number application online apply dt:05-08-22 submit.if dealer recently noticed received from gst department query raised reason for dealer itc excess claim difference between gstr3b vs gstr2a/gstr2b previously years 18-19,19-20,20-21 and 21-22 years show in notice dt:16-08-22 received amount rs:5 lacs Question: 1.Dealer notice show amount tax pay compulsory 2.itc camparison provision gstr3b vs gstr2a/gstr2b applicable dt:01-01-22 in gst act is correct ?

Ans. 1. As per section 29(3), the cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under the CGST Act for any period prior to the date of cancellation. Therefore, it is required to comply with the requirements raised by the GST department.

2. With regard to sub-rule 4 of rule 36 of the CGST rules, it is mandatory to claim ITC after mapping invoices reflecting in GSTR-2B.

Q.153 Is GST application on university under public private partnership ( State institute of hotel management ). If yes then how (i.e. why exemption not applicable ) if no then how (i.e. is that hotel management recongnised by law and how we can identify it) ?

Ans. In terms of notification no. 12/2017- CT (R ), entry 66 includes exemption on services provided by an educational institute to its students relating to conduct of degree courses which leads to grant of qualifications recognized by law. In the above case, the hotel management course provided by the state institute is recognized by law , hence it is exempt.