Q. 166 A sales goods to B . A discounted this bill from C and received immediate payment . Later on C , issued bill to B & received full payment . Is GST applicable on Bill discounting business i, e on C & if applicable should be on net discount charges received ?

Ans. Under GST law, bill discounting of invoices or cheques falls within the meaning of “services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount”. Such discounting is exempt from payment of GST, as such discounting is nothing but a manner of extending a credit facility or a loan. Hence, it is considered an exempt supply. However, if some service charges or service fees or documentation fees or broking charges or such like fees or charges are charged, the same would be a consideration for the supply of service and chargeable to GST.

Q. 165 My client deals in Following Items – 1. Car Bumper Guards / Safety Guards / Bull Guards. 2. Car Roof Carriers / Lugagge Carriers. 3. Car 7D Floor Mats made from PVC and Rexine. a. Kindly clarify which HSN Code to use and at what rate for all 3 items as there is a lot of confusion in market. b. For Item No 3, Car 7D Floor Mats, = Some are using HSN Code 5704, some are using HSN code 3904, some are using 8708. Kindly clarify which HSN Code to use? All 3 HSN Codes are for same items with same material quality ?

Ans. You can use HSN 8708 and also for item no. 3, you may use HSN code 8708. 

Q.164 If a company is in business of providing training services and provides gift to employees in nature of awards. Can GST Input be availed on such purchase of items ?

Ans. Under Schedule I, gifts up to INR 50,000/- per year by an employer to his employee are outside the ambit of GST. Moreover, gifts of exceeding INR 50,000 made without consideration are taxable under GST.