FAQ : It is a destination based tax on consumption of goods

Size: px

Start display at page:

Download "FAQ : It is a destination based tax on consumption of goods"

Anthony Snow
5 years ago
Views:

Marwadi Ghano Saro Tax Doctor Glucose Stimulation

Sweet dream, Take care FAQ : It is a destination

It is proposed to be levied at all stages right

credit of taxes paid at previous stages available

In a nutshell, only value addition will be taxed

2 Marwadi Ghano Saro Tax Doctor Glucose Stimulation Test Pandit Gau Sewa Tax Alia Bhatt Good night, Sweet dream, Take care FAQ : It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax CA Gadia Manish R 2 is to be borne by the final consumer. Source:

3 COVERAGE Time of Supply of Goods & Services Related transitional provisions Provisions related to Invoice Provisions related to Debit Note and Credit Note Provisions related to E way Bill Valuation CA Gadia Manish R 3

4 246A Constitution of India Notwithstanding anything contained in articles 246 and 254, Parliament, and, subject to clause (2), thelegislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter State trade or commerce. 269A Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter State trade or commerce. CA Gadia Manish R 4

5 Time of Supply CA Gadia Manish R 5

6 Point of Taxation Excise Removal of Goods VAT Transfer of Property in Goods Service Tax As per Point of Taxation GST Section 12, 13 & CA Gadia Manish R 6

7 Taxable Event Supply Occurs at precise time Collection of levy CA Gadia Manish R 7

8 What is Time of Supply? Section 12(1)/13(1) Fixes the point when the liability to charge GST arises Indicates when a supply is deemed to have been made The liability to pay GST on the goods/services shall arise at the time of supply as determined in terms of the provisions of this Section CA Gadia Manish R 8

9 Time of supply of Goods Issue of Invoice by the supplier Last date on which require to issue invoice with respect of supply Earliest of Earliest of Receipt of payment by supplier in respect of supply CA Gadia Manish R 9

10 Invoice require to be issue [sec31(1)] Before or at the time of: Supply involve movement of goods Removal of goods Other case Delivery of goods or Making available 2(96) Remo oval of Goods Dispatch of goods for delivery by the supplier or any person on behalf of supplier Collection of goods by recipient or any person on behalf of recipient de avai ilable Goo ods ma Means goods are placed at the disposal of the recipient physically not capable of being moved M/c embedded to earth supplied in assembled or installed form Lift supplier to his agent or his principal CA Gadia Manish R 10

11 Continuous Supply of Goods Successive statements of accounts or successive payments Yes Invoice shall be issued before or at the time each such statement is issued No?? Sl Sale on approval or sale or return or similar term Goods removed before it is known that supply will take place, invoice shall be issued earliest of Continuous Supply of Goods: Provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whetherornotby means of wire, cable, pipeline or other conduit and for which the supplier invoices the recipient on a regular or periodic basis. Before at the 6 months time, It from the known that date of supply has removal taken place CA Gadia Manish R 11

to be made to the extend it is covered by the invoice or the payment 29.4.

12 Receipt and invoice Excess payment up to Rs 1000 Invoice & Payment At the option off supplier li be the date of issue of invoice Supply shall be deemed to be made to the extend it is covered by the invoice or the payment CA Gadia Manish R Receipt of Payment Earliest of Entry in the A/C Credit in Bank A/c 12

13 Time of Supply of Goods under RCM at the eearliest est date of Receipt of Goods Dt Date of Payment made Paym ent made Immediate ly following 30 days from the date of Invoice Earliest of Entry in the A/C Debit in Bank A/c Other case entry in book of A/c RCM means the liability to pay tax by the recipient of supply of goods or services instead of the supplier of such goods or services in respect of such categories of supplies as notified CA Gadia Manish R 13

14 Time of supply in case of vouchers Residuary Cases Supply is identifiable at that point Date of issue of voucher Other case Date of redemptio n of voucher If periodic return has to be file Yes No Due date of filing of GST paid return CA Gadia Manish R 14

15 Time of Supply of Services at the Earliest of Invoice is issued in 30/45 days Invoice is not issued in 30/45 days Date of Invoice Date of Receipt of payment Date of Complet ion of Service Date of Receipt of Payment CA Gadia Manish R 15

16 Receipt and invoice Excess payment up to Rs 1000 Invoice & Payment At the option of supplier be the date of issue of invoice Supply shall be deemed to be made to the extend it is covered by the invoice or the payment CA Gadia Manish R Receipt of Payment Earliest of Entry in the A/C / Credit in Bank A/c 16

17 Continuous Supply of service Due date of Payment is linked payment is to the completion ascertainable of an event Issue of Invoice 31(5) Yes Bf Before or within time prescribed on which the payment is liable to be made Before or within time prescribed No of completion of event Continuous Supply of Bf Before or within Service time prescribed on Provided or agreed to be which the provided continuously or on recurrent basis, under payment is a contract, for a period received exceeding 3 months with periodic payment py obligation and as may be notified CA Gadia Manish R 17

18 Supply of Services Ceases under a contract before completion of supply Sec 31(6) Invoice shall be issued at the time when thesupply ceases to the extend supply effected before cessation CA Gadia Manish R 18

in supplier is the date of Books of outside India Invoice A/c Entry in A/c or payment Date

19 Time of Supply of Services under RCM at the earliest date of at the earliest date of Payment made Associated Immediately Other Enterprises following 60 case where days from Dbii Debit in supplier is the date of Books of outside India Invoice A/c Entry in A/c or payment Date of Payment made Earliest of Entry in the A/C Credit in Bank A/c CA Gadia Manish R 19

20 Time of supply in case of vouchers Residuary Cases Supply is identifiable at that point Date of issue of voucher Other case Date of redemptio n of voucher If periodic return has to be file Yes No Due date of filing of GST paid return CA Gadia Manish R 20

21 Change in the Rate of Tax Supplied ISSUE OF INVOICE RECEIPT OF PAYMENT TIME OF SUPPLY Before After After Date of Invoice or Receipt of Payment, whichever is earlier. Before Before After Date of Issue of Invoice Before After Before Date of Receiptof Payment After Before Before Date of Invoice or Receipt of Payment, whichever is earlier. After Before After Date of Receipt of Payment After After Before Date of Issue of Invoice CA Gadia Manish R 21

22 Date of Payment normal course earlier of date of entry in BOAs date of credit in bank Date of Cr in Bank, if not change in within 4 working days rate of tax Otherwise date of deposit CA Gadia Manish R 22

23 Transitional Provisions CA Gadia Manish R 23

24 Contract is entered before the appointed date Goods or services supplied on or after the appointed date CA Gadia Manish R 24

25 POT under earlier Law 142(11) Tax in respect of taxable service / taxable goods Payable under earlier law To the extend of POT in respect of such services / Goods arose before appointed date GST payable py Not covered above CA Gadia Manish R 25

26 POT under earlier Law 142(11)(C) Tax in respect of taxable service and taxable goods Pid Paid under VAT and Service Tax both Tax Shall be leviable under GST To the extend supplies made after appointed ddt date Credit of earlier law CA Gadia Manish R 26

27 Return of Goods sent on approval basis prior to 6 months from appointed date Returned to seller Not returned Goods returned within 6 months or extended period of 2 months from appointed day within 6 months or extended period from appointed day after months or extended period from appointed day No Tax payable provided details of goods sent on approval is submitted in 60 days in GST TRAN 11 GST shall be payable by seller GST shall be payable by person returning goods CA Gadia Manish R 27

28 Sale of vatable goods and invoice for the same is also issued before the appointed date by a supplier on which supplier is liable to deducted d dtds under GST Payment to the supplier is made after the appointed date CA Gadia Manish R 28

29 Duty paid on goods at the time of removal under existing law prior to the appointed day Returned to any place of business on or after theappointed day within a period of 6 months from the appointed day This means that t the registered person returning goods shall be liable to charge and pay GST on such CA Gadia Manish R 29 sales return

invoice or debit note issued within 30 days to the recipient shall be deemed to be an outward supply GST act The credit note

30 Contract entered prior to appointed date Contract entered prior to appointed date Price of Goods or services revised upwards Price of Goods or services revised downwards On or after the appointed date On or after the appointed date The supplementary invoice or debit note issued within 30 days to the recipient shall be deemed to be an outward supply GST act The credit note issued within 30 days to the recipient shall be deemedd to be anoutward supply as per GST act CA Gadia Manish R 30

Service tax on the above value 120 3. Price of services post revision 4. Addition in prices (2 1) 20 4.

31 Particulars 1. Original price of services 2. Service tax on the above value 3. Price of services post revision Amt Particulars 1. Original price of services 2. Service tax on the above value Price of services post revision 4. Addition in prices (2 1) Reduction in prices Credit available to be? 5. Outwardsupply under 20 adjusted against further GST act GST liability Amt CA Gadia Manish R 31

32 Implications of Invoicing Rules 1 A tax Invoice should consists of the following Details:- Name, Address and GSTIN of the supplier Serial Number of Invoices (can contain or / ) Date of issue of Invoice Name, Address and GSTIN if the receiver is registered HSN / Accounting Code of services Description of Goods/Services Quantity of Goods Total Value of Goods/Services Taxable Value of Goods/Services taking into account any discount or abatement Rate of Tax (CGST, SGST or IGST) Amount of Tax Charged Place of Supply along with the Name of the state Whether tax payable on RCM Signature or Digital Signature of the supplier or his CA Gadia Manish R 32 authorized representative

33 Export Invoice Endorsement SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST or SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST name and address of the recipient; address of delivery; name of the country of destination; and number and date of application for removal of goods for export: Other details as per normal invoice CA Gadia Manish R 33

34 Supply below Rs. 200/ Registered person may not issue a tax invoice where supply of goods/services or both is below Rs. 200/ subject to the following conditions, namely: (a) the recipient is not a registered person; and (b) the recipient does not require such invoice, issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies CA Gadia Manish R 34

35 Bill of Supply Supply is exempted or supplier paying under composition name, address and GSTIN of the supplier; Serial lnumber of Invoices (can contain ti or / ) Date of its issue; Name, address and GSTIN or UIN, if registered, of the recipient; HSN Code of goods or Accounting Code for services; Description of goods or services or both; Value of supply of goods or services or both taking into account discount or abatement, if any; and Si di i l i f h li hi Signature or digital signature of the supplier or his authorized representative: CA Gadia Manish R 35

36 Receipt Voucher Advance Payment received Name, Address and GSTIN of the supplier Serial Number of Invoices (can contain or / ) /) Date of issue of Invoice Name, Address and GSTIN if the receiver is registered Description of Goods/Services Amount of advance taken Rate of Tax (CGST, SGST or IGST) Amount of Tax Charged Place of Supply along with the Name of the state if Inter state supply Whether tax payable on RCM Signature or Digital Signature of the supplier or his authorized representative CA Gadia Manish R 36

37 debit note means a document issued by a taxable person as referred to in sub section (3) of section 34; Where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to be less than the taxable value and/or tax payable in respect of such supply, the taxable person, who has supplied such goods and/or services, shall issue to the recipient a debit note containing such particulars as may be prescribed CA Gadia Manish R 37

38 credit note means a document issued by a taxable person as referred to in sub section (1) of section 34; Where a tax invoice has been issued for supply of any goods and/or services and the taxable value and/or tax charged in that tax invoice is found to exceed the taxable value and/or tax payable in respect of such supply, or where the goods supplied are returned dby the recipient, i or where services supplied are found to be deficient, the registered taxable person, who has supplied such goods and/or services, may issue to the recipient a credit note containing such particulars as may be prescribed CA Gadia Manish R 38

39 Revised Invoice, Debit/Credit Note The word Revised Invoice, Name, address and GSTIN of the supplier; Nature of the document; Serial Number of Invoices (can contain or / ) Date of issue of the document; name, address and GSTIN or UIN of the recipient, if registered / address of delivery, name of State and its code if recipient is un registered Sr. No., date of the corresponding tax invoice or bill of supply; Value of taxable supply of goods or services, Rate of tax Amount of the tax credited / debited to the recipient Signature or Digital Signature of the supplier or his authorized representative CA Gadia Manish R 39

40 ISD invoice Name, address and GSTIN of the Input Service Distributor; Serial Number of Invoices (can contain or / ) Date of its issue; Name, address and GSTIN of the recipient to whom the credit is distributed; Amount of the credit distributed; and Signature or digital signature of the Input Service Distributor or his authorized representative: CA Gadia Manish R 40

origin and destination GSTIN of the person liable for paying tax whether as consignor,

41 GTA Consignment Note Gross weight of the consignment Name of the consignor and the consignee Registration number of goods carriage Details of goods transported Details of place of origin and destination GSTIN of the person liable for paying tax whether as consignor, consignee or GTA Also containing other information as per normal invoice CA Gadia Manish R 41

42 Transportation of goods without issue of invoice For the purposes of supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known, transportation of goods for job work, transportation of goods for reasons other than by way of supply, or such other supplies as may be notified by the Board, the consigner may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of goods for transportation, CA Gadia Manish R 42

43 Contents of delivery challan Date and number of the delivery challan, Name, address and GSTIN of the consigner, if registered, Name, address and GSTIN or UIN of the consignee, if registered, HSN code and description of goods, Quantity (provisional, where the exact quantity is not known) Taxable value, Rate of Tax (CGST, SGST or IGST) & Amount of Tax Charged where the transportation isfor supply to the consignee, Place of supply, in case of inter State movement Signature. Prepared in triplicate ORIGINAL FOR CONSIGNEE, DUPLICATE FOR TRANSPORTER & TRIPLICATE FOR CONSIGNER. Where goods are being transported on a delivery challan in lieu of CA Gadia Manish R 43 invoice, the same shall be declared in FORM [WAYBILL].

Information in Part A of Form GST INS 01 Generate e way bill by

GST INS 01 In relation to supply say to a consignee For reasons

44 Information in Part A of Form GST INS 01 Generate e way bill by furnishing information in Part B of GST INS 01 E Way Bills under GST >Rs.50,000 Information relating to transporter in Part B of Form GST INS 01 In relation to supply say to a consignee For reasons other than supply say branch transfer within state, job work etc. Generate e way bill CA Gadia Manish R 44

45 CA Gadia Manish R 45

46 CA Gadia Manish R 46

47 Scheme of Valuation Value of supply Transaction value Valuation Rules Buyer or seller are unrelated Price is the sole consideration CA Gadia Manish R 47

48 Transaction Value FAQ Q 2. What is transaction value? Ans. Transaction value refers to the price actually paid or payable for the supply of goods and or services where the supplier and the recipient are not related and price is the sole consideration for the supply. It includes any amount which the supplier is liable to pay but which has been incurred by the recipient of the supply CA Gadia Manish R 48

49 Transaction Value shall include: Taxes levied other than GST Acts, if charged separately. Amount that supplier is liable pay in relation to such supply but incurred by recipient and not included in the price. Incidental expenses such as commission & packaging and charged dby the supplier to the recipient i including any amount charged for anything done by the supplier in respect of the supply of goods and/or services at the time of, or before delivery of the goods or, supply of the services interest or late fee or penalty for delayed payment of any consideration for any supply subsidies directly linked to the price excluding subsidies provided by the CG and SG. The subsidy shall be included in the value of supply of supplier who receives the subsidy CA Gadia Manish R 49

50 Value Shall not include discount Before or at the time of supply Discount has been recorded in the invoice After the supply has been effected Such hdiscount is as per the terms of Agreement entered into at or before the time of supply and specifically linkedto relevant invoices; and ITC has been reversed by the recipient of the supply as is attributable to the discount CA Gadia Manish R 50

51 Section 15(4) Where the value of the supply of goods or services or both cannot be determined under sub section section (1), the same shall be determined in such manner as may be prescribed CA Gadia Manish R 51

52 Valuation Rules Supply of goods or services where the Value of supply of goods or services or both between Value of supply of goodsmade or consideration is not wholly in money distinct or related persons, other than through an agent received through an agent Residual method Value of supply of for determination Determination of goodsor or services or of value of supply value in respect of both based on cost of goods or services certain supplies (Rule 4) or both (Rule 5) Rate of exchange of Value of supply of services in case of pure agent currency, other than Indian rupees, for determination of value CA Gadia Manish R 52

53 VALUE OF TAXABLE SERVICES under Service Tax Consideration for service is Whollyin money Not wholly/partly Not ascertainable in money a. Gross amount Such amount in money Gross amount charged to provide + Charged by SP similar service to Service Tax payable for such service any other person provided or to be provided by Value cannot be him determined in accordance with (a) Equivalent money value of such consideration which h shall, be at least equal to the cost CA Gadia Manish R 53

Total of money & money equivalent of consideration in kind Value of supply of

54 Transaction Value Consideration wholly in money Such consideration Consideration not wholly in money Open market value of such supply CAS -4 Total of money & money equivalent of consideration in kind Value of supply of like kind and quality 110% of cost / other reasonable amount CA Gadia Manish R 54

55 Illustration A shop owner sells mobile phone Open Market Cash Kind Value Cost of Supply Like Kind & Quality Transactio n Value Vl Value Not Known Not Known Not Known Not Known Not Known Not Not Not Not Known Known Known Known CA Gadia Manish R 55

40,000 Worth Rs 1 Worth Rs 15,000 And Cash of Rs.

56 Supply of goods or services where the consideration is not wholly in money (Rule 1) Example: Mr. A Mr. B Worth Rs. 40,000 Worth Rs 1 Worth Rs 15,000 And Cash of Rs. 25,000 As per Rule 1, Value of supply will be the open market value of such supply ie i.e. Rs. 40, CA Gadia Manish R 56

57 Value of supply between distinct or related persons, other than through an agent Full ITC available to recipient, Invoice Value open market value of such supply the value of supply of like kind and quality the value as determined by application i of rule 4 or rule 5 Not Available Not Determined CA Gadia Manish R 57

58 Value of supply of goods made or received ed through h an aent agent open market value of such supply 90% of price charged for the supply goods of like kind and quality by the recipient to his customer the value as determined by application of rule 4 or rule 5 or Not Determined CA Gadia Manish R 58

59 Value of supply of goods or services or both based on cost (Rule 4) Where the value of a supply of goods or services or both is not determinable by any of the preceding rules, the value shall be 110% of the cost of production or manufacture or cost of acquisition of such goods or cost of provision of such services CA Gadia Manish R 59

60 Residual method for determination of value of supply of goods or services or both (Rule 5) Shall be determined using reasonable means consistent with the principles i and general provisions of Section 15 and these rules Provided that in case of supplyof services, the supplier may opt for this rule, disregarding rule 4 The residual method should be adopted only if valuation is not possible by any other method [Sanjay Chandiram v. CC 1995 (77) E.L.T 241(S.C.)] Before resorting to valuation under residuary Rule, applicability of other Rules will have to be exhausted [Polyvinyl Industrial Corporation vs CC 1994 (74) ELT 426] CA Gadia Manish R 60

61 Valuation in Specific cases(rule 6) Money Changer Similar to Rule 2B of present regime Air Travel Agent Similar to Rule 6(7) of Service Tax Rules,1994 Life Insurance Business Similar to Rule 6(7A) of Service Tax Rules,1994 Person Dealing in Buying and Selling of Second hand goods Value of token, Voucher, Coupon or a stamp Certain services provided ddto related and distinct person CA Gadia Manish R 61

62 Value of supply of services in relation to purchase or sale of foreign currency and money Changing A person can opt any of the following options for determining value of supply Option A: When any currency is exchanged from or to Indian Rupees (INR) If in relation to the above case, RBI reference rate is not available If neither of the currencies exchanged ininr Value shall be difference between the Buying or selling rate and RBI reference rate, multiplied by total units of currency Value shall be 1% of gross amount of INR provided or received by the person changing the money Value shall be 1% of lesser of two amounts by converting any of the two currencies into INR CA Gadia Manish R 62

63 Option B Gross Amount of Vl Value to be considered d for Currency Exchanged Supply of Service Upto Rs. 1,00, % of Gross amount of currency Exchanged, Subject to Minimum amount of Rs Exceeding Rs. 1,00,000 Rs. 1, % of Gross amount to Rs. 10,00, of currency Exchanged Exceeding Rs. 10,00,000 Rs. 5, % of Gross amount of currency Exchanged, Subject to Maximum amount of Rs. 60, CA Gadia Manish R 63

64 Value of supply of service by Air Value to be considered for Supply of service Travel Agent Type of Booking of Air ticket 5% of Basic Fare Domestic Booking 10% of Basic Fare International Booking Basic Fare means that t part of the Air Fare on which Commission is normally paid to the Air Travel Agent by the airline CA Gadia Manish R 64

65 Value of Supply of Service of Life Insurance Business Rule 6(4) If amount allocated for investment is intimated to policy holder at the time of supply In case of single premium annuity policies other than above Gross premium charged reduced dby the amount allocated for investment or savings on behalf of policy holder 10% of single premium charged from the policy holder 25% of premium charged in 1 st year In all other cases from policy holder 12.5% of premium charged in Subsequent years CA Gadia Manish R 65

nature of the goods and where no input tax credit has been availed on purchase of such goods, the value of supply shall be the

66 Value of Supply for a person dealing in Buying and Selling of Second dhand goods Where a taxable supply is provided by a person dealing in buying and selling of second hand goods i.e. used goods as such or after such minor processing which does not change the nature of the goods and where no input tax credit has been availed on purchase of such goods, the value of supply shall be the difference between the selling price and purchase price Where the value of such supply is negative it shall be ignored CA Gadia Manish R 66

67 Value of token, Voucher, Coupon or stamp The value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both Shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon, or stamp CA Gadia Manish R 67

68 Certain services provided to related ltdand distinct t person The value of taxable services provided by such class of service providers as may be notified by the Government on the recommendations of the Council as referred to in Entry 2 of Schedule I between distinct persons as referred to in section 25, other than those where input tax credit is not available under sub section (5) of section 17, shall be deemed to be NIL CA Gadia Manish R 68

69 Pure Agent means who enters into a contractual agreement neither intends to hold nor holds any title to the goods or services does not use such goods or services so procured receives only the actual amount CA Gadia Manish R 69

70 Exclusion of Value (Rule 7) Conditions i for exclusion from the value acts as a pure agent while making payment recipient of service receives and uses the goods or services so procured recipient of service is liable to make payment to the third party authorises knows payment has been made separately indicated in the invoice actual amount to be recovered are in addition to the services he provides CA Gadia Manish R 70

71 Sri Bhagavathy Traders Case [2011 (24) STR S.T.R. 290 (Tri. LB)] In so far reimbursements of expense are concerned, it has to be seen whether the service receiver had a legal orcontractualobligationtomakepaymenttothirdparty or not and whether the amount is paid by the service provider on behalf of the service recipient The service provider cannot treat costs for inputs services and inputs used in rendering services as reimbursable costs CA Gadia Manish R 71

72 Rate of exchange of currency, other than Indian rupees, for determination of value Rule (8) The rate of exchange for determination of value of taxable goods or services or both shall be the applicable reference rate for that currency as determined by the Reserve Bank of India on the date when point of taxation arises in respect of such supply in terms of the Act CA Gadia Manish R 72

73 Meaning of Distinct Person As per Subsection 4 and 5 of Section 25 of the Act, A person who has obtained or is required to obtain more than one registration,whether or not in respect of an establishment, in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act CA Gadia Manish R 73

74 GST What we thought What we received CA Gadia Manish R 74

75 Opinions or views are like wrist watches. Every watch shows different time from others. But every one believes that their time is right! CA Gadia Manish R 75

Information contained herein is of a general nature and is not intended to CA Gadia Manish R address the circumstances of any manish@gmj.co.in particular individual or entity.

76 Information contained herein is of a general nature and is not intended to CA Gadia Manish R address the circumstances of any manish@gmj.co.in particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of particular situation. Ph : CA Gadia Manish R 76

Save +91 98205 37986 in your contacts & <YOUR NAME> _<SEMINAR NAME> SEND TO +91 9820537986 Add

77 Save in your contacts & <YOUR NAME> _<SEMINAR NAME> SEND TO Add to your contacts & Sub: START_UPDATES to in CA Gadia Manish R 77

78 Related person They are officers or directors of one another's businesses Company A Company B Dire ctor Dire ctor Mr. A Related Mr. B CA Gadia Manish R 78

79 Related person they are legally recognized partners in business If persons are partners in a business entity, they are related persons for all transactions? Whether they should be partner on the date of supply or not? they are employer and employee p y Supply of service from Employee to Employer out of GST ambit Supply of goods from employee to employer or vice versa CA Gadia Manish R 79

80 Any person directly or indirectly owns, controls or holds twenty five per cent or more of the outstanding voting stock or shares of both of them Holding as on date of supply? B and C are also related? B Ltd. A Ltd. Holds 25% share in C Ltd CA Gadia Manish R 80

81 one of them directly or indirectly controls the other both of them are directly or indirectly controlled by a third person; together they directly or indirectly control a third person Meaning of Control? Meaning of Control? Meaning of Control? they are members of the same family Term of family? The term "person" also includes legal persons Sole agent or sole distributor or sole concessionaire, howsoever described, of the other are related persons CA Gadia Manish R 81

82 payment made or to be made, whether in money or otherwise The money value of any act or forbearance, whether or not voluntary The deposit, whether hth refundable or not subsidy given by the Central Government or a State Government in respect of, in response to, or for the inducement of, the supply of goods or services, whether by the recipient orany other person Consi derati on shall be considered as payment made for supply when the supplier applies the deposit as consideration for supply CA Gadia Manish R 82

Money Money means Indian legal tender or any foreign

draft, pay order, traveller cheque, money order, postal

recognized by the RBI when used as consideration to

tender of another denomination but shall not include any

83 Money Money means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, LC, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the RBI when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value CA Gadia Manish R 83

84 open market value means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and price is the sole consideration, to obtain such supply at the same time when the supply being valued is made CA Gadia Manish R 84

85 means supply of goods or services or both of like kind and quality anyother supply of goods or services or both made under similar circumstances that, in respect of the characteristics, quality, quantity, functional components, materials, and reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both. If more than one value of identical goods is available, then the lowest of such value should be taken [Resina Combination vs CC 1999 (114) E.L.T 860 (Tri.)] Comparison of goods must be of identical goods at the same commercial level [ Sandip Agarwal vs CC 1992 (62) E.L.T 528 (Cal)] CA Gadia Manish R 85

86 Credit not allowed 17(4)(a) ) motor vehicles and other conveyances except when they are used for making thefollowing taxable supplies, namely further supply of such vehicles or conveyances transportation of passengers/goods imparting training on driving, flying, navigating such vehicles or conveyances CA Gadia Manish R 86

87 Credit not allowed 17(4)(b) Allowed only for outward supply of same category food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery Membership of club, health and fitness centre Allowed only if mandatoryas as per law rent a cab, life insurance, health insurance Travel benefits travel benefits extended to employees on vacation such as leave or home travel concession CA Gadia Manish R 87

88 Credit not allowed 17(4)(c) & (d) Works contract services when supplied for construction of immovable property, other than plant and machinery, except where it is an input service for further supply of works contract service; goods or services received by a taxable person for construction of an immovable property on his own account, other than plant and machinery, Construction includes to the extent of capitalization Plant and Machinery means apparatus, equipment, machinery, pipelines, telecommunication tower fixed to earth by foundation or structural support that are used for making outward supply and includes such foundation and structural supports but excludes land, building or any other civil structures CA Gadia Manish R 88

89 Credit not allowed 17(4)(e)(f)(g) and (h) Tax paid under Composition Used primarily for personal consumption Goods lost, stolen, destroyed, d written off or disposed of by way of gift or free samples ITC wrongly availed or utilised by reason of fraud etc. Detention, seizure and release of goods and conveyances in transit Confiscation of goods and/or conveyances CA Gadia Manish R 89

COVERAGE. Constitution of India 246A

COVERAGE. Constitution of India 246A COVERAGE Time Supply Goods & Services Value Taxable Supply Valuation Rules Related transitional provisions Section 160, 161 GST Act and Section 31 IGST Act CA Gadia Manish R 2 Doctor Glucose Stimulation