CA Kamal Garg

1. What will be the GST implication if a manufacturer were to deliver goods by road to the customers using his own vehicle and charges freight in his bill
that freight will be part of value of goods and GST payable on total value at same rate as of goods
2. In case of Service Import from Outside India.

1) What Tax would apply IGST or CGST + SGST?

2) What would be the place of Supply

3) whether Self invoice need to be generated

1. IGST;

2. India;

3. when reverse charge applies, invoice in name of self at end of month can be generated and uploaded in GSTR 2

3. Mr. X wants to opt for CMP Scheme. What treatment should be given to stock that exists on 30.6.2017 if such stock is (i) tax free; (ii) tax (VAT) paid
no treatment required for stock – only he has to give required declaration
4. What will be the GST provisions for a dealer engaged in providing mobile recharge services? Under service tax there was a notification no 25/2012 which specify taxability of mobile recharge service only at the time of telecom company providing service to the dealer.
The distributor should invoice to dealer and charge GST and dealer should charge GST and take credit of GST charged by distributor
5. GTA is registered in Delhi and recipient is registered in Haryana. What tax should be deposit by recipient IGST or CGST and SGST under Reverse Charge Mechanism? Should this be IGST to be paid under RCM by Haryana based recipient as place of service is location of recipient in different State
IGST is payable as in case of reverse charge really only liability of supplier is transferred to recipient
6. A Proprietorship firm registered under service tax already migrated to GST. Now the firm is converted into partnership firm. Please clarify: 1. Whether the new partnership firm is required to take fresh registration under GST or the constitution can be changed by amendment? 2. If fresh registration is required then how ITC of old firm can be carried forward in TRAN 1 and be utilized by the partnership firm?
1. yes with new PAN

2. You have to follow section 18(3) of CGST Act if such transfer is after 1-7-2017

7. Head office of AMC is registered under GST. Such AMC has branches spread all over India which carry marketing activities, developing & maintaining investor relationship etc for MF. There is no direct billing by branches to MF. Only HO of AMC issues invoice to MF. These branches incur certain rent & other local expenses. Whether all the branches need to take GST registration? Or can HO apply for ISD and claim the ITC arising out of inter-co transactions?
Branches need not register – however, if they want to pass on ITC, the branches should register as ISD
8. A manufacturer (company) is located in Jharkhand. The officials of the company travel to different states for official work and stay in different hotels. Please clarify

1. In Hotel bill which would be in the name of the company, what will be the place of supply?

2. IGST would be charged or CGST + SGST.

3. Whether the company can claim the credit of the same?

1. it will be where hotel is situated and the hotel will charge local SGST and CGST

2. CGST and SGST of that State

3. legally if you give your GSTIN you can take Input Tax credit for CGST for CGST – SGST of that State cannot be taken for SGST for your State but that can be used for IGST However, as per departmental view this is not allowed and hence the system will not allow. Hence you will have to contest

9. IF GTA engaged in transportation of goods by road, takes voluntary registration under GST, will he be liable to collect and pay GST even if he provide services to Company or the provisions of reverse mechanism will still apply.
no but if he is getting some services where reverse charge applies then he will be liable
10. A clinical establishment rendering healthcare services registered U/S 12AA hither to exempt from VAT on medicines sold through pharmacy-they sought registration under GST with effect from 10-07-2017. The query is whether they can claim input tax credit on VAT element embedded in the closing stock as on 09-07-2017.
yes if they are selling them as such and charging GST on such sale- as per provisions of section 140
11. Under the present GST Law, few items are kept outside the GST Net such as crude petroleum, natural gas, petrol, diesel, aviation turbine fuel, liquor/alcohol for human consumption, since VAT and Excise duty are still applicable to them. Now if they are charged with VAT and Excise duty, then what happens to the GST on Inputs (if such inputs are charged to GST) which may have been used in the production of those goods? Can GST input be set off against VAT liability?
It will be cost to them as its ITC is not available
12. GST paid under reverse charge in case goods / Services procured from unregistered vendor. In this case, whether this need to be reflect in GSTR – 1 and then take credit via GSTR-2
you have to directly upload in GSTR 2 – see column 4
13. Whether Notice period recovered / adjusted from employee upon leaving of organization is Taxable
yes – tolerating an act or situation
14. Commercial premises have been taken on rent. There is only one electricity meter installed by electricity supply company. The Society has installed separate meters for each let out unit. Based on meter reading, the Society raises reimbursement bill on each unit, no GST is mentioned on such reimbursement bill. Will the tenant be liable to pay GST on RCM basis while making payment to the Society?
electricity is exempt from GST and hence RCM cannot apply
15. A company producing CNG and PNG, has its inputs which are chargeable to GST whereas the CNG and PNG are subject to Excise duty. So ITC paid on inputs, input services and Capital goods won’t be available to be set off with the output tax liability of Excise? It will lead to tremendous increase in cost and cascading effect as earlier excise was being set off with the output excise duty but now it will not be allowed to be set off. Is there any way out for the CNG and other natural gas produce
no way out – increase prices
16. GST is payable on Freight if shown in the invoice as it will be composite supply. Please clarify at what rate GST would be payable on freight if there are more than one item is to be supplied in invoice and rate of GST for each item is different.
if you do not give breakup of freight then highest rate If possible distribute freight on proportionate basis on all goods
17. Suppose a registered person Mr. A (UP) is buying goods from an unregistered person Mr. B (MP). Since Mr. B (MP) can’t make interstate supply unless registered, hence Mr. A himself visited in MP and bought the goods from Mr. B. Now Please clarify:

1. Mr. A has to pay tax under reverse charge?

2. If yes what will be place of supply?

3. which tax to pay IGST or CGST + SGST

1. yes

2. place of supply is MP

3. law not fully clear as they have not thought of such situation – but SGST and CGST should paid on principle that GST is consumption based tax and goods are consumed in UP

18. Import of services without consideration is not liable to GST as per section 3 but what about of goods? It is also not liable to GST?
import of goods without consideration are subject to IGST
19. As branch transfer is not taxable in case of inter state supply but I want to know in case of intra state is it taxable or not
supply within State – GST payable only if different GST Registration numbers – otherwise transfer only on simple Delivery challan
20. Person having centralized registration will have to apply afresh registration for each premise. Is it correct sir? If correct then companies will not be able to take credit of their branches like possible earlier in centralized registration?
he needs registration only; if he is supplying goods and services from that place branch credit can be taken only if branch is registered as ISD and distributes credit to HO alternatively the supplies should indicate company’s GSTIN in their invoices and upload them – legally HO can take its credit but practically seems difficult
21. Whether advance received against export to be made is liable for GST as per provision of time of supply if not then please give relevant provision
 if you are going to export without payment of GST then there is no need to pay GST; but strictly legally it can be agreed that GST is payable by issuing receipt voucher
22. 1) If a dealer is engaged in selling of taxable as well as non-taxable goods, can he opt for composition scheme as section states one of the condition that he is not engaged in making any supply of goods which are not leviable to tax under this Act. The word “any” is used. (2) If a dealer is engaged in selling of taxable goods as well as services can he opt for composition scheme
1. he can go for composition scheme but GST payable on non taxable goods also

2. not allowed even if wants only for goods portion – no such provision has been made

23. Sec. 16(2)(c) states that the tax charged in respect of such supply has been actually paid to the government, either in cash or through utilization of ITC admissible in respect of the said supply; I do understand that the intention is to ensure that the tax has been paid by the supplier to the govt. but what I am unable to understand is the meaning of the line “either in cash or through utilization of ITC admissible in respect of the said supply”
means supplier can pay GST either in cash or ITC – in other words – payment through credit is equivalent to payment by cash
24. Whether 100% EOU also requires registration, since section states that no registration required if any person engaged exclusively in the business of supplying goods or services or both that “are not liable to tax” or wholly exempt from tax. when there is no liability to tax then why registration is required
supplies of EOU are liable to tax and even exports are liable to tax – they are zero rated – not exempt
25. Where transporter who is unregistered located in Rajasthan sends vehicle to Maharashtra to company A then under GTA company A to discharge IGST or CGST / SGST in Rajasthan or Maharashtra
The place of supply of services by way of transportation of goods, including by mail or courier to (a) a registered person, shall be the location of such person (b) a person other than a registered person, shall be the location at which such goods are handed over for their transportation – section 12(8) of IGST Act. Hence CGST and SGST of Maharashtra is payable
26. Our company sells software and has branches all over India. Branch gets order and billing is done from Mumbai and IGST is charged. Software is emailed to client with key number from Mumbai. The branch incurred expenses like rent and administration. How to claim set off because branch did not issue sales invoice. Local vendor charges CGST and SGST.  Can we claim GST set off on branch expenses in Mumbai.
If the landlord indicates your GSTIN number in his invoice and uploads that invoice in GSTR1, really you should be able to used at least CGST credit but mostly it will not be allowed by GSTIN network and you will have to contest the issue. Another alternative is to register each branch as ISD and then pass on the credit to HO by Input Service Distributor Invoice
27. Can I revise my GST TRAN – 01 form in case of any mistake
You can delete before accepted by recipient but once he accepts, then it can be adjusted only through debit or credit note
28. XYZ (Manufacturer from Navi Mumbai) is selling goods to PQR (Pune) and as per the instructions of PQR, he is directly delivering the goods to SEZ unit.

1) Can XYZ clear the goods without payment of IGST; or

2) since buyer is PQR, has to charge CGST and SGST to PQR?

1. no provision in GST for this

2. CGST and SGST to be charged

29. If X Ltd. is situated and registered in UP and if it purchased goods from West Bengal (WB) and orders the WB suppliers to send the goods directly to X Ltd.’s customer in Bihar. Then – whether initially X Ltd. will pay IGST to WB supplier & then it will also collect IGST from Bihar recipient.
WB supplier to charge IGST to X Ltd and then X Ltd can take its ITC – X Ltd. to charge IGST to Bihar recipient
30. Is it necessary to mention HSN Code in Delivery Challan for “Supply on Approval Basis” if annual turnover of firm is less than 1 crore ? Supply will be made to Govt. department.
Since there is specific requirement in that rule, it is required. If turnover less than one core then HSN code is not required
31. The trader is getting cash discount on early payment of purchase. What are the implications under GST.

(1) Whether he should raise debit note with GST; or

(2) seek credit note from supplier & reversal of GST therein.

either way allowed but the other party has to accept the credit/debit note in GSTR
32. A Doctor is having rental income of Rs. 6 lakhs despite his regular medical practice more than Rs. 20 lakhs thus aggregate turnover being 26 lakhs (including exempt supply). Whether he will have to get GST registration and charge GST in rent invoices
legally yes
33. The person was having service tax registration at his place of residence and he was earning rental income on immovable properties being situated in three states. Please guide as to (1) whether he will have to take three new registrations at the place where such immovable properties situated and (2) surrender the registration taken at place of residence.
1. no 2. can continue – he can charge IGST in respect of property in other States
34. If a non resident has rented immovable property in India. Then whether he is liable to register under GST?
no – but recipient is liable to pay GST under reverse charge if commercial property
35. A person is selling rajma Rice and miscellaneous food articles through small kiosk without offering sitting facility to clients. Please advice whether it would be considered as trader or restaurant service under Composition Scheme of GST and at what rate the same shall be taxable.
If he is preparing food then it is restaurant service and on that GST @ 12% If he is simply selling then it will be suply of goods and then on rice – no GST
36. For the month of June’2017, we had already filed the ER-1 return and VAT return. Under this, we had a PLA balance and CENVAT balance and the same thing in VAT return (excess vat payment plus ITC). In such situation,

(1) is it possible to transfer the PLA balance and excess payment of VAT payment to the GST regime; or

(2) we have to apply for refund under the excise and vat provisions? kindly clarify

PLA you have to claim refund. For VAT and CENVAT balance you have to file details in GST TRAN-1 and then you will get credit in your GST credit Ledger
37. As per notification no.12/2017- Central Tax (Rate) dated 28.06.2017, services by an entity registered u/s 12AA of IT Act is exempt from GST. Please clarify whether a religious trust registered under the above section may also claim the exemption under the above notification of the items which are sold by it and incidental in nature viz. Agarbatti, Diya, flower, religious songs cassette, sweets etc.
all services are not exempt – only specified services are exempt; however, it can be argued that such sale is not in course of business and hence no GST can apply
38. I am service provider having office at Madhya Pradesh. I provide manpower recruitment services in MP as well in other states too. I have registered my self in GST in MP. Is there any requirement for registration in other states too? i have not any office at any place other than MP. In invoicing what should i charge when billed within MP or when outside MP
if you do not have fixed establishment at other place you need not register there – you can charge IGST
39. If Free Samples are cleared without payment of GST under a Delivery Challan to be issued under Rule 55 of CGST Act, 2017, whether Value and amount of GST is required to be shown in the delivery challan
yes as that is requirement of Delivery Challan
40. Can an entity providing both taxable and exempt services, chose not to give it’s GSTIN number to the extent the purchases/ expenses relate to the exempt services provided by it, to simplify the process of claiming ITC. What is the harm in doing so?
No such provision and it will create numerous problems for you as for you these will be treated as purchases from URD and you will be liable to pay GST under reverse charge
41. In the earlier Service Tax regime there was a provision for inclusive method for receiving consideration under section 67. But now under section 15 of GST Act there is no such provision. So the query is whether GST can be collected in an inclusive method while receiving consideration or it has to be collected separately
In fact even earlier service tax was required to be shown separately – section 67 never allowed inclusive method. Inclusive of GST does not mean GST is not required to be shown separately in invoice
42. In case of an exporter filing refund of input taxes paid, can he claim refund of taxes paid on capital goods as well?
He can claim refund of GST on inputs only
43. I am manufacturer. The recipient requests us to make payment of transport charges which we mention on our invoice and collect as reimbursement from our recipient. Some times we bear the transport charges. Queries:

1. shall we include the transportation charges in transaction value & charge GST or it will be exempted.

2. if supply goods including transportation whether GST @ 5 % on GTA or on 18 % which is the rate at which our product is taxed.

1. include and charge GST

2. @ 18% as it is composite supply and you are not GTA

44. We are EOU & have accumulated credit of Rs. 3 cr. in excise return accumulated over 10 year period.

1. whether we can carry forward the accumulated credit in GST

2. EOU allowed to export on payment of IGST

3. If yes whether we can utilise this credit for payment of IGST for exports

4. We have stock which is more than 2 years old on which credit has been claimed in excise returns; whether we are required to reverse the credit while transition to GST.

1. yes 2. yes as now no exemption 3. yes 3. no – as once credit taken validly no time limit for utilisation
45. We have given office rent of Rs. 900000/- as on 1st April 2017 for 36 months (up to 31.03.2020).The office owner was not liable for service tax due to threshold. So whether now we have to pay under reverse charge for the rent 01.07.2017 to 31.03.2020 as we are registered under GST. Whether it has to be paid month wise or in July 2017 return as entire rent has been paid in advance on 01.04.2017.
If you have booked entire amount as expenditure then no issue but if you show it as different expenditure in your books of account and then show expenditure every year then issue of reverse charge will arise
46. We normally purchase some items from unregistered vendor on daily basis. In this case, we have to do self invoice and liable to pay GST under RCM. My query is

1. How we should deposit GST. I mean whether we have to deposit GST under RCM according to item vise item tax code or is there any process.

2. e.g. we purchase stationery items like pen, pencils, files and other stuff from unregistered vendor, then How we should pay GST to Govt. as per tax service code item wise or not.

1. if less than Rs 5,000 per day – then no reverse charge. Otherwise you have to prepare a monthly consolidated invoice with separate HSN code, value etc.

2. same as above

47.  In case a Company purchase gift items from unregistered persons for Rs. 40000 and has to pay GST on reverse charge and then this gift is given to employees, will the ITC paid on RCM basis be available as credit to company, since there won’t be GST on gift since not exceeding Rs. 50000
not available – what they mean is that on those gifts GST not payable – but that does not mean ITC is available
48. Please clarify what will be the treatment of the service tax excess deposited in the existing law under GST
You have to claim refund
49. My query is in relation to two expenses of a company – 1. Corporate Social Responsibility 2. Donation under 80 G of direct tax. Would GST be applicable on them? If not, why?
if the supply is taxable then GST applies even if it is under CSR. On donation there will not be any GST
50. GST on Transmission or distribution of electricity by an electricity transmission or distribution utility is nil. A electricity distribution utility engaged a contractor for construction of 11 KV electric line. Since electricity cannot be distributed without the lines

(1) whether GST is payable if the contractor is registered person

(2) if not registered whether utility is liable for GST under RCM as construction of line is inevitable for transmission or distribution of electricity. Advise

1. yes

2. yes – capital expenditure is different from distribution of electricity service

51. My Company is providing certain IT Services to its related party (RP under Companies Act) and charging no consideration. Example: Server is maintained at our company and some of usage also done by the related party. Whether GST will apply and at what rate?
indeed yes – on basis of open market price @ 18%
52. When a supplier sales items to SEZ it is considered as zero rated supply , who has to furnish bond/LUT, whether supplier or SEZ unit when items are supplied by supplier to SEZ unit
the supplier has to furnish bond/LUT
53. I am dealer of taxable goods. My goods are delivered to door to door and at my shop also. So How can I maintain Bill? Can I use different bill books for this? In door to door system which document required to keep by sales person in van?
Really if amount less than Rs 200, you can prepare consolidated bill at end of day. But otherwise, separate bill books are required
54. We receive roller from factory owner for repair work. We do coating of rubber and than send them. In this service and rubber products are involved. Rubber is taxable @ 28 % and service is taxable @ 18 % 1) It will be treated as mixed supply or job work ? 2) What will be the rate of GST ?
It is composite supply as labour is predominant and GST 18%
55. Can a professional (CA or CA Firm or Tax Consultant) pay GST liability from their Bank account on behalf of their client and later collect from them. OR that liability must be paid from the Client’s own Bank account registered in the GST Portal
CA can pay – usually they keep separate bank account for that . However, this is subject to Section 144 of the Companies Act, 2013
56. A person not registered in Old Laws and GST Act and carrying business in a FY, let’s say in FY 2017-18, till Nov-2017 has turnover of Rs. 15 Lakhs and Till Dec-2017 has turnover of Rs. 25 Lakhs. Here he is required to get registration in Dec-2017 (within 30 days). Now if he gets registration in Dec-2017, then he is required to pay GST only on the Turnover crossing the limit of 20 Lakhs for the balance period? Or is he required to pay GST on the total turnover for the whole FY 2017-18?
only after 20 lakhs but next year – no exemption
57. Please guide for GST impact on following for a manufacturing unit

1. Staff quarter maintenance expenses

2. Free accommodation to staff and rent recovery from staff in some cases.

3. Food providing to staff on concessional rate.

4. Maintenance expense of School for staff children.

No ITC available
58. Cost of food not eligible for ITC but if the all inclusive package is taken from hotel lodging and boarding it is bundled composite supply so it is not necessary to estimate the value of food supplied and disallow the same, the main supply being supply of hotel services and as per legal principle it being bundled supply the ITC is not disallowable subject to the rider that there is no personal use element involved Kindly confirm.
59. whether service tax exempted on affordable housing is still into exemption under GST because it is no where mention into new exemption list issued by GST council
no exemption after 1-7-2017
60. Please clarify under Reverse Charge in GST regime, an invoice is to be issued by a recipient of goods or services. Please clarify how to issue an invoice: 1. Who will be the supplier in invoice 2. Who will be the recipient in invoice?
he has to issue invoice in his own name. One consolidated invoice at end of month is sufficient but that invoice should contain all required details of each supply
61. what is the meaning of “supply involves movement”. Does this include the situation where supply has taken place earlier and goods are moved later. e.g. in case of ex-factory supply where risk & rewards are passed on to the buyer at the time of handover of goods in the factory and the goods are to be transported by buyer himself.
even then if goods are going in other State and buyers GSTIN number and address is mentioned – then IGST payable risk and reward concept s not there in GST
62. For Computing aggregate turnover of Rs. 20 lakh, whether Interest received on loan given is to be considered. Whether Interest will be considered as exempted income serial no. 27 of notification 12/2017 Central Tax (Rate) dated 28/06/2017
really interest is money and hence neither goods nor service but yes that exemption can create problems
63. we prepare material for our books ( which are exempt under GST) and give the same for printing to the printers who use their own paper etc. Is any GST chargeable by them on this printing. if yes what kind of invoice will they issue us as we are exempt from payment of GST (as we are dealing solely in books that are exempt from GST).
they have to pay GST as if it is sale of books – and hence exempt
64. I have to pay RCM for June month invoices received under service tax regime, now how can i avail the credit of the same, as earlier we used to take RCM credit in next month but now this was last month.
In following cases, service tax payable is due after 1-7-2017 – (a) assesses who were required to pay service tax on receipt basis as their turnover was less than Rs 50 lakhs per annum (b) Service tax payable under reverse charge (c) Service provided in June 2017 but invoice raised in July 2017 (as 30 days period is allowed to raise invoice). As per Section 67A of Finance Act, 1994, the rate of service tax is when service is deemed to have been provided. In each of aforesaid case, the Point of Taxation is as follows – (a) [payment of service tax on receipt basis] Individuals and partnership firms including LLP (but not HUF firms) whose total value of taxable services from all premises together is ` 50 lakhs or less in the previous financial year can opt to pay service tax on receipt basis instead of accrual basis [fourth proviso to rule 6(1) of Service Tax Rules inserted w.e.f. 1-4-2012] (b) [reverse charge] In case of services covered under reverse charge, the point of taxation shall be the date on which payment is made to service provider, if the payment for such service is made within three months from date of invoice. If the payment for such service is not made within three months from date of invoice, the point of taxation will be the date immediately following the period of three months – first proviso to rule 7 of POT Rules. (c) [date of invoice after 1-7-2017] As per Rule 3(a) of Point of Taxation Rules, 2011, unless otherwise provided, time when invoice for the service provided or to be provided is issued, shall be ‘point of taxation’. GST payable when service is deemed to be provided after 1-7-2017 – As per S No. 83 of Tweet FAQ released by CBE&C on 26-6-2017, GST is required to be paid as point of tax is after 1-7-2017. The issue of GST rate will arise as service tax rate upto 30-6-2017 was 15% while GST rate is 18%. For (a) above [payment of service tax on receipt basis], really GST should be 15% as he has already raised invoice at that rate. Hence, point of taxation is before 30-6-2017. However, this rate may not be accepted in GSTR1 return. As regards (b) [reverse charge] and (c) [date of invoice after 1-7-2017], the GST rate will be 18%, as point of taxation is after 1-7-2017.
65. A Shopkeeper of Gifts Centre (Not registered earlier under the Old Laws) wants to NEWLY register for Composition Scheme. He has some stocks of gifts which have Invoices from Registered Dealer under Old Act (VAT) and stocks from unregistered dealer also. Now if he wants to register for Composition Scheme,

1. Is he required to mention details of these stocks in registration application?

2. Is he required to pay tax on these stocks from Un-registered Dealer on RCM basis?

1. no

2. yes

66. Section 17(5)(h) asks to reverse ITC when we supply “goods’ as free of cost. Are the same provisions applicable for services as well
only where supply of service without consideration is also subject to GST, otherwise no
67. We had received advances from buyers for the flats. The buyers are cancelling the flats due to high rate of GST. Whether we will be eligible to claim credit of service tax paid when advances were received in the GST electronic credit ledger
Are you going to refund with GST? if so, you have to apply for refund of service tax Refund of service tax on account of service not provided if tax was paid on advance prior to 30-6-2017 – In service tax, tax is payable when advance is received. Later, if service was not provided (partly or fully), such service tax paid on advance can be adjusted as per rule 6(3) of Service Tax Rules. However, such adjustment is not possible after 1-7-2017. Hence, in such case, refund of excess service tax will be granted in cash. The refund will be subject to doctrine of unjust enrichment – section 142(5) of CSGT Act.
68. We are builders and providing construction services. We have stock in hand of under construction flats. Cement, Steel and Other inputs are already being used for under construction flats. Whether we can claim ITC of the Inputs that has been used in the past one year for the under construction flats which will be sold under GST.
If they are in stock and if you have duty paying documents, you should be able to take its credit after making declaration in form GST TRANS1 – see section 140(6)
69. Is there GST on pawn broker business? What will be the position in these two situations if applicable

1. Interest is below 20 lakhs but loan given is above 20 lakhs?

2. Interest and loan both are above 20 lakhs? He takes the possession of goods till the loan is repaid. On repayment of loan goods are returned to customer.

there is no GST on either loans or interest but if he sales pawned goods then GST will apply
70. MRP is to be inclusive of tax or exclusive of tax. Is there any specific rules for MRP
it has to be inclusive of all taxes As per Rule 2(l) of Legal Metrology (Packaged Commodities) Rules, ‘retail sale price’, in relation to a commodity, means the maximum price at which the commodity in packaged form may be sold to ultimate consumer, and the price shall be printed on the package in the manner given below – ‘Maximum or Max Retail Price . . inclusive of all taxes’ or ‘MRP ` . . incl. of all taxes’
71. What if the advance is received in june against the service to be rendered in july and invoice is also to be raise in july
then pay normal GST in july (unless you had paid service tax on advances received in June 2017 itself)
72. In a JD Agreement, how to calculate the consideration received from the land owner who has bartered specified portion of the land area for a specified portion of the built up area. Notification 11/2017 dt 28/06/2017 paragraph 2 deems 1/3 of the amount recovered from the flat buyers of the builder as deemed land cost. Whether the same amount can be taken as consideration for land bartered by owner. If yes, the said amount also includes GST as the land owner will not pay any other amount.
no – actually whatever flats are given to landlord, its value shall be calculated on basis of value of similar flats and then GST to be paid
73. In a JD comprising of construction of residential apartments what point of time GST liability falls on the builder in respect of owners share of the constructed area , if the owner starts selling his portion of the flats progressively, as and when he gets a buyer, but before receipt of OC
Builder’s liability starts only after he gets buyers for flats – till then he is providing construction service to himself and hence no GST is payable at that stage
74. Indian Company is having a parent company based out of India. Foriegn company got the order to supply the material in the Indian Market. Further, Foriegn co. authorised the indian company to do the installation activities in India. Indian company will get the service fee in the form of cost plus margin from the foriegn company. Consideration will be in the form of USD. Please advise about place of supply & Whether the above service will fall under Export of service and out from GST purview ?
it is a performance based service and hence place of upply is India The Indian company is liable to pay GST however, if Indian company is getting commission on sales, GST is payable as Indian company is intermediary and hence place of supply is India
75. If I charge freight on bill which is containing rates as 5/12/18/28% GST, then it will be a composite supply and freight will be charged at the rates of 5/12/18/28% respectively. What if invoice of freight is sent later on after delivery of goods? Then what rate will be chargeable on freight?
1. yes 2. even then same GST rate as factually it is a composite supply only
76. A Ltd Company enters into an MOU with B Ltd for purchasing a ready to move in commercial property after 3 years for a fixed consideration. Property is currently in under construction condition. Entire consideration shall be discharged once the property is fully constructed. A Ltd will give an interest free refundable security deposit to B Ltd (equivalent to consideration) which will be refunded back to A Ltd once the property is acquired by A. Whether GST is applicable in this case?
This is nothing but advance being shown as security deposit This will never get refunded – it will get adjusted towards payment to be paid to builder. Really GST should be payable when so called security deposit is received
77. As per S.31 of CGST read with Invoice rules the rate of tax and amount of tax charged under CGST, SGST, IGST has to be mentioned in Invoice. Can the invoice be issued stating “including of GST”. Many dealers are issuing invoices “including of GST”. If it cannot be issued for B2B can it be issued for B2C “including of GST”.
legally incorrect – tax has to be indicated separately – whether B2B or B2C
78. If advance is received on sale of goods in July and then actual sales made in Sept, then at the time of actual sales the seller will issue tax invoice with full amount and will also attach receipt voucher with it. The buyer will pay only the net amount to seller. Then the seller will show it alongwith details of receipt voucher in GSTR-1 in Sept Return i.e. in Oct. Whether this procedure is correct or not
not attach receipt voucher – he will adjust the tax shown in Tax Invoice against tax paid when advance was received this adjustment will be shown in GSTR-1 return
79. A company distributes pen and pad free with their logo to its distributors whether this is covered under free supply and whether GST is applicable. Whether company can claim ITC on the said material when it has purchased the same
GST not applicable but ITC reversible if it was taken at the time of purchase
80. For registration limit of Rs.20 Lakh / 10 Lakh is for previous year turnover or current year turnover. if current year turnover is to be taken, should it be taken from April to till date of from 1 July onwards
it is for previous year
81. If tour operator provides services of booking of hotels or booking of car / train / bus tickets etc what will be the value and rate under GST? 1. if he is charging amount inclusive of cost of accommodation or transport

2. if he is charging only booking charges and raised an reimbursement bill for cost of accommodation and transport.

3. what documents shall be issued for reimbursement charges, invoice or bill of supply?

1. then as if he is charging for accommodation itself

2. then 18% on his commission

3. at that stage he cannot produce hotels’ invoice – that will be only when the person stays and the hotel prepares bill – when the tour operator makes invoice he can only show hotel charges separately

82. We are a limited Co. and we have around 200 field staff who use their own vehicle, travel by Train / Taxi, stay in low cost hotels (below Rs. 1000 per day), have fooding at Dhabas & charge Daily Allowances also. RCM is applicable on which items?
RCM applies only if the service is taxable and obtained from unregistered persons. If service is exempt then no question of RCM
83. Kindly advice me that ITC on Motor Car purchased is not allowed for normal dealer but can we avail ITC of Motor car expenses like repairing, spares parts, etc.
There is no exclusion and hence ITC should be available
84. 1. Is transfer of used Capital Goods equipment of a contractor firm from one state to another state which is registered in both states, for conducting contract works under GST regime taxable?

2. If so how to compute the taxable value.

3. If not can a delivery challan will be sufficient for transfer

Really registration in different States are treated as two different persons but there is no consideration as after the work, the capital goods will be brought back In my view, Delivery Challan is sufficient as it is not ‘supply’ but yes different views are possible
85. Where rent is payable monthly of Rs. 10000 to an unregistered person by a registered person is it covered under reverse charge can benefit of Rs. 5000 per day be taken since per day rent is less than Rs. 5000
it has to be calculated on basis of total expenses per day – the monthly rent cannot get covered here

(Author can be reached at

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  1. ravi chandra says:

    i am an unregistered person residing in ap.i purchased a car in hyderabad.what is the place of supply in gst and what tax to pay.please clarify.

  2. M S Lakshman Rao says:

    sir i am tax practitioner in Guntur. A.P. One of my clients case was picked for audit by The GST Department and have raised a point with regard to RCM and ITC on Same transaction. .The details are my client had RCM purchases from Tobacco Board in the month of July 2017. While filing GSTR- 3B for the month of july , the rcm purchases is not mentioned but tax on such RCM purchases is paid through challan in august 2017 while filing the return and the details are mentioned in ITC Column of the return. The entry is also reflected in cash ledger for that particular year and GSTR 9 & 9C are also filed without making any corrections. Now the audit party raises a point that such RCM is not paid and similarly wrong availment and utilization of ITC. can you pls suggest me an advise to overcome such situation

  3. rahul1981 says:

    Hi Sir,
    We are Manufacturer , We Export the Material also, We filed our GSTR 3 B Return in the Month of July -2019 Without feeding details of Export , we file our all data in Domestic Sale, instead of that my Export Refund Will stung in ICE Gate, Sir What to do & we are Quarterly filer of GSTR 1 Retrun , Please help us what to do…………………..


    Good mrng sir, I have a query multi vendor platform where vendors will come to our platform and list their goods and give us commission upon selling their goods. On receiving order from customer , we will give details of transaction to vendor to deliver the goods and raise tax invoice. here payment will be collected by us from customers.

    Say price of product displayed on the site is – ₹10000/-
    Our commission is 15% on each sale we made
    18% GST Applicable on sale of product & for our service.
    During process of sale we gave a discount of 10% to customer i.e ₹1000/- , this discount shouid be born out of our share of 15%.
    Even though we sold for ₹9000/- , vendor will get his share @85% on ₹10000 only
    In above transaction at what price vendor shouid raise tax invoice ? And on what price shouid collect GST? I.e 9000/- or 10000/-?

    At what price we shouid raise invoice on vendor ? And collect GST? i.e ₹1500 or ₹500?

    Thank you.

  5. NARPAT SINGH says:

    डिअर सर
    में नगर परिसद में कांट्रेक्टर हु मेरे द्वारा किए गए कार्यो का नगर परिसद द्वारा भुगतान करते समय मेरा 1 % CGST 1 % SGST टैक्स काट लिया जाता कया मेरे काटे गए टैक्स की में छूट कैसे ले सकता हु मुझे इनपुट टैक्स में क्रेडिट मिलेगी या रिफंड मिलेगा
    कर्पया मुझे बताए

  6. CA Hitesh says:




  7. mehul.m.ashar says:

    Respected Sir,
    I have come to know that u give reply to gst queries, I would be thankful to u if u reply to my confusing query, my query is that one of my clients has got the service maintainience charges bill on car which is registered in company accounts too, as gst is charged in bill can i take the credit of it or not.Please reply.


    What is the HSN code and rate of Tax for the following
    2. RAMDANA

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February 2024