Q. 702 GST implications on infrastructure development charges in terms of laying electricity lines ?

Ans. As per GST notification 12/2017- CTR, transmission or distribution of electricity by an electricity transmission or distribution utility is exempt from GST. However, as per circular no. 34/8/2018, GST to be levied on infrastructure development charges but further Rajasthan high court in the case of Jodhpur Vidyut Vitran Nigam Ltd quashed the circular thereby meaning entire services related to the supply of electricity to be exempted. Still, the above matter is a very subjective matter of litigation.

Q. 701 A company is supplying products online. They have e – wallets. The customer can deposit money in his e-wallet on company's portal. The balance in e-wallet can be used to buy any products offered by company.

The company have few products which are taxable and few exempt from GST. The query is
1. What will be the time of supply , when money is deposited in e-wallet or when the customers actually purchase product by utilising e-wallet balance?
2. Whether balance in e-wallet account will be treated as “advance received” for GST purpose and liable to GST accordingly?

Ans. Since advances received against goods are not liable to GST, hence No GST will be levied. More analysis is required as per the Business Model.  It is advised to take a detailed opinion on the above subject matter.

Q. 700 Is GST TDS will be applicable if a PSU makes rent payments to hotel with which the company is having Corporate rate agreement. And it cannot be said whether the taxable amount of total rent payment under the rate agreement will exceed threshold of 2,50,000 or not as the payments are made for very small amounts at once depending upon the frequency of booking of rooms and period of stay. 

Ans. If the total value of supply under the contract does not exceed 2,50,000, tds is not required to be deducted.