Q. 196 We usually raise debit notes towards short supplies, rejections, and quality differences the value of the same is deducted from ITC and net value considering for set off. My question is instead of deducting from ITC shall we upload the debit note in GSTR-1?

Ans. Under GST law, form GSTR- 1 is the statement of reporting invoice-wise details of outward supplies of goods and services or both, in that statement debit notes or credit notes related to outward supplies are to be furnished in the return if the same is issued by the supplier only. The reporting of debit notes related to ITC is not allowed in Form GSTR-1 because it will not lead to input reversal and it will inflate the turnover of the company which is not permissible under GST law. 

Q. 195 A Gst registered composite scheme dealer sales of taxable and sales of exempted turnover both show in cmp-08 returns and annual returns compulsory For example: Doctor sales of medicines for pharmacy business rs:50 lacs Agriculture income rs:1,80,000/- Fees collections income rs 20 lacs Show in income tax returns. Question : Dealer above mentioned incomes all show in composite returns compulsory ?

Ans. As per rule 62 of the CGST Rules, the return furnished shall include details of (a) invoice wise inter-State and intra-State inward supplies received from registered and un-registered persons; and (b) consolidated details of outward supplies made. In the above case, all details of taxable as well as exempt supply are to be furnished in the return.

Q. 194 Pls clarify, is gst applicable on motivational books and yoga training services?

Ans. In terms of notification no. 12/2017- CTR, only services provided by an entity registered under section 12AA/12AB of the Income Tax Act,1961, by way of advancement of religion, spirituality, or yoga are exempt as these activities are covered in the definition of charitable activities. In the above case, if motivational books and yoga training services are provided by way of charitable activities and the entity is registered u/s 12AA/12AB of the Income Tax Act then GST is not applicable to such activities.