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. 

Q. 152 A partnership firm registered under GST bought Passenger car and let it out to body corporate (who is unregistered) for monthly rental. 1. Is the Firm eligible for ITC credit on purchase of Car, Insurance, and servicing cost. 2. Can firm pay GST @ 12% under forward charge and claim ITC credit or It will be mandatory liable for GST under RCM as Recipient of service is body corporate (unregistered) ?

Ans. As per entry 15 of the notification no. 13/2017- CT (R ), if the cost of fuel is included in the consideration charged from the service recipient, renting of passenger motor vehicles is taxable under reverse charge. ITC would be limited to input services if it belongs to the same line of business. Further, a partnership firm (supplier) may pay GST @ 12% under forward charge instead of 5 % and claim ITC credit.