| 1 |
Whether the supply of used
vehicles, seized and confiscated
goods, old and used goods, waste
and scrap by Government
departments are taxable under
GST? |
- It may be noted that intra-State and interState
supply of used vehicles, seized and
confiscated goods, old and used goods,
waste and scrap made by the Central
Government, State Government, Union
territory or a local authority is a taxable
supply under GST.
- Vide notification No. 36/2017-Central Tax (Rate) and notification No. 37/2017-
Integrated Tax (Rate) both dated
13.10.2017, it has been notified that intraState
and inter-State supply respectively
of used vehicles, seized and confiscated
goods, old and used goods, waste and
scrap by the Central Government, State
Government, Union territory or a local
authority to any registered person, would
be subject to GST on reverse charge basis
as per which tax is payable by the
recipient of such supplies.
- A doubt has arisen about taxability of
intra-State and inter-State supply of used
vehicles, seized and confiscated goods,
old and used goods, waste and scrap made
by the Central Government, State
Government, Union territory or a local
authority to an unregistered person.
- It was noted that such supply to an
unregistered person is also a taxable
supply under GST but is not covered
under notification No. 36/2017-Central
Tax (Rate) and notification No. 37/2017-
Integrated Tax (Rate) both dated
13.10.2017.
- In this regard, it is clarified that the
respective Government departments (i.e.
Central Government, State Government,
Union territory or a local authority) shall
be liable to get registered and pay GST on
intra-State and inter-State supply of used
vehicles, seized and confiscated goods,
old and used goods, waste and scrap made by them to an unregistered person
subject to the provisions of sections 22
and 24 of the CGST Act.
|
| 2 |
Whether penalty in accordance with
section 73 (11) of the CGST Act
should be levied in cases where the
return in FORM GSTR-3B has
been filed after the due date of
filing such return? |
- As per the provisions of section 73(11) of
the CGST Act, penalty is payable in case
self-assessed tax or any amount collected
as tax has not been paid within a period of
thirty days from the due date of payment
of such tax.
- It may be noted that a show cause notice
(SCN for short) is required to be issued to
a person where it appears to the proper
officer that any tax has not been paid or
short paid or erroneously refunded or
where input tax credit has been wrongly
availed or utilised for any reason under
the provisions of section 73(1) of the
CGST Act. The provisions of section
73(11) of the CGST Act can be invoked
only when the provisions of section 73
are invoked.
- The provisions of section 73 of the CGST
Act are generally not invoked in case of
delayed filing of the return in FORM
GSTR-3B because tax along with
applicable interest has already been paid
but after the due date for payment of such
tax. It is accordingly clarified that penalty
under the provisions of section 73(11) of
the CGST Act is not payable in such
cases. It is further clarified that since the
tax has been paid late in contravention of
the provisions of the CGST Act, a general
penalty under section 125 of the CGST Act may be imposed after following the
due process of law.
|
| 3 |
In case a debit note is to be issued
under section 142(2)(a) of the
CGST Act or a credit note under
section 142(2)(b) of the CGST Act,
what will be the tax rate applicable
– the rate in the pre-GST regime or
the rate applicable under GST? |
- It may be noted that as per the provisions
of section 142(2) of the CGST Act, in
case of revision of prices of any goods or
services or both on or after the appointed
day (i.e., 01.07.2017), a supplementary
invoice or debit/credit note may be issued
which shall be deemed to have been
issued in respect of an outward supply
made under the CGST Act.
- It is accordingly clarified that in case of
revision of prices, after the appointed
date, of any goods or services supplied
before the appointed day thereby
requiring issuance of any supplementary
invoice, debit note or credit note, the rate
as per the provisions of the GST Acts
(both CGST and SGST or IGST) would
be applicable.
|
| 4 |
Applicability of the provisions of
section 51 of the CGST Act (TDS)
in the context of notification No.
50/2018-Central Tax dated
13.09.2018. |
- A doubt has arisen about the applicability
of long line mentioned in clause (a) of
notification No. 50/2018- Central Tax
dated 13.09.2018
- It is clarified that the long line written in
clause (a) in notification No. 50/2018-
Central Tax dated 13.09.2018 is
applicable to both the items (i) and (ii) of
clause (a) of the said notification. Thus,
an authority or a board or any other body
whether set up by an Act of Parliament or
a State Legislature or established by any
Government with fifty-one per cent. or
more participation by way of equity or control, to carry out any function would
only be liable to deduct tax at source.
- In other words, the provisions of section
51 of the CGST Act are applicable only to
such authority or a board or any other
body set up by an Act of parliament or a
State legislature or established by any
Government in which fifty one per cent.
or more participation by way of equity or
control is with the Government.
|
| 5 |
What is the correct valuation
methodology for ascertainment of
GST on Tax collected at source
(TCS) under the provisions of the
Income Tax Act, 1961? |
- Section 15(2) of CGST Act specifies that
the value of supply shall include “any
taxes, duties cesses, fees and charges
levied under any law for the time being in
force other than this Act, the SGST Act,
the UTGST Act and the GST
(Compensation to States) Act, if charged
separately by the supplier.”
- It is clarified that as per the above
provisions, taxable value for the purposes
of GST shall include the TCS amount
collected under the provisions of the
Income Tax Act since the value to be paid
to the supplier by the buyer is inclusive of
the said TCS.
|
| 6 |
Who will be considered as the
„owner of the goods‟ for the
purposes of section 129(1) of the
CGST Act? |
It is hereby clarified that if the invoice or any
other specified document is accompanying the
consignment of goods, then either the consignor
or the consignee should be deemed to be the
owner. If the invoice or any other specified
document is not accompanying the consignment
of goods, then in such cases, the proper officer
should determine who should be declared as the
owner of the goods. |
