The applicant is not required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the “Overseas Commission Agent:.
The Hon’ble Madras High Court held that Section 74(5) of CGST Act does not provide for advance payment of GST when final GST liability is not determined. Hence no GST liabilities during investigation can be demanded by any GST authority.
CBIC assured that no recoveries shall be made for the past periods as well, i.e., delayed GST payment made upto 31.08.2020, by any of the Central and State tax administration. Therefore, interest computation for earlier period shall be carried out in accordance with the decision taken in the 39th meeting of GST Council only.
In case of Ex-factory sales where the goods are situated in two different states or union territories then such a transaction qualifies for interstate supply and IGST is leviable for ex-factory supplies.
Under Goods and Service Tax (“GST”), generally, a supplier of goods and services is liable to pay GST for the supplies, i.e., at the time of supply of goods or service supplier charges GST over sales consideration and collect the same from recipient and by due date deposit such GST amount to the account of government On the contrary, in the case of Reverse Charge Mechanism (“RCM”) under GST, the recipient himself is liable to pay the tax for goods and services received by him instead of the supplier. Therefore, the recipient is liable for all compliance under GST. Here
Taxpayers are liable to Interest Payable on Gross GST liability, as declared in GSTR-3B. Section 50 of the Central Goods and Service Tax Act, 2017 contains interest related provisions.
However, whether interest is payable on the gross amount of GST liability or net amount of GST liability (i.e., after setting off ITC Balance) is still under dispute.
CBIC clarified that monthly contribution received by RWA upto INR 7,500/- exempted from GST, RWA is entitled to take ITC on Capital Goods, Input and input services Central Board of Indirect Taxes & Customs (“CBIC” or “Department”) received various representations regarding ambiguity in complying with provisions of Goods and Service Tax (“GST”) on monthly subscription received by Resident Welfare Association (“RWA”) or GST on RWA from its members. Clarification on issues related to GST on RWA Accordingly, CBIC issued circular No. 109/28/2019-GST dated 22nd July, 2019 to provide clarification on the following issues related to the monthly subscriptions being collected
Recently a major judgment was passed in the High Court regarding the payment of interest under section 50 of CGST Act, 2017. The highlights of the judgement were:
Service provided by Fair Price Shops to Central Government, State Government or Union territory by way of sale of food grains, kerosene, sugar, edible oil, etc. under Public Distribution System against consideration in the form of commission or margin
Payment of GST liabilities shall be made at the time of supply of goods as specified in section 12(2)(a) (i.e earliest of date of invoice or the last date of issue of invoices) and section 14 (i.e. change in rate of Tax) of the said Act, and shall accordingly furnish the details and returns by all the registered person other than those opt for composition scheme.
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