Question 27: What is the format for invoices to be issued in the case of reverse charge payment of GST? Answer: No separate format for any type of invoicing including selfinvoicing has been prescribed. The contents of the invoice have been prescribed in Rule 46 of the CGST Rules, 2017. Related GST FAQ GST FAQ… Read More »
Question 26: Is the requirement of transferring of credit through ISD mechanism mandatory? Answer: The ISD (Input Service Distributor) provision under the CGST Act, 2017 is not mandatory. It only provides the manner of distribution of ITC wherever the business entity wishes to distribute the ITC as an Input Service Distributor. Related GST FAQ GST… Read More »
Question 25: Can payment of IGST on reverse charge basis on import of goods/services be done through book entry or ITC? Answer: No. GST payable on reverse charge basis is to be discharged through cash only. Rule 85(4) of the CGST Rules, 2017 refers. Related GST FAQ GST FAQ on IT / ITES 150 GST… Read More »
Question 23: What is the tax liability (under GST) in a scenario where supplies are made from multiple locations (in different States) of the supplier to the recipient under a single contract? Answer: Delivering services from various locations and integrated pricing for the contract as a whole is the norm in IT/ITES industry. Normally the… Read More »
Question 22: How will the defective parts be sent to the mother warehouse/repairing centre for repair by the downstream repairing centres? What is the tax liability under GST ? Answer: The defective parts shall be sent for repair on a delivery challan accompanied by such e-way bill as may be prescribed. GST shall be chargeable… Read More »
Question 21: An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to ‘D’, who bills the OEM for the services he provides to the customer. What is the tax liability of ‘D’? Answer: ‘D’ is providing service to… Read More »
Question 20: What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit under GST ? Answer: As parts are provided to the customer without a consideration under warranty, no GST is chargeable on… Read More »
Question 19: What special provisions are attracted in GST with regard to associated enterprises? Answer: An enterprise which participates, either directly or indirectly, through one or more intermediaries, in the management, or control or capital of the other enterprise is an associated enterprise. In the context of GST, associated enterprise is particularly relevant in the… Read More »
Question 18: When would it be construed that I have made a supply of services (under GST) involving temporary transfer or permitting the use or enjoyment of any intellectual property right? Answer: Generally, the End User Licence Agreement (EULA) is the legal contract between a software application author or publisher and the user of… Read More »
Question 17: I am obtaining online database access services from a company abroad over the net, would I have to pay tax on reverse charge? Answer: The recipient, if registered, has to pay the applicable IGST on reverse charge basis. If the recipient is not registered, the matter is treated as an online information and… Read More »