Question 31: Whether a Government Department, required to deduct tax at source, is liable to take registration as a normal taxpayer? Answer: The Government Department is required to take registration as a normal taxpayer only if it makes a taxable supply of goods and/or services and in such cases, the registration shall be obtained on… Read More »
Question 30: Whether an amount in the form of royalty or any other form paid/payable to the Government for assigning the rights to use of natural resources is taxable under GST ? Answer: The Government provides license to various companies including Public Sector Undertakings for exploration of natural resources like oil, hydrocarbons, iron ore,… Read More »
Question 28: What is the concept called ‘ tax deduction at source ’? Answer: As per section 51 of the CGST Act, 2017, the Government may mandate (a) a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or category of persons… Read More »
Question 27: Can the supplier of services claim the tax paid under reverse charge mechanism as input tax credit? Answer: Yes. The supplier of services may claim the input tax credit on the amount of tax paid under reverse charge mechanism subject to the provisions of Chapter V of CGST Act, 2017 read with… Read More »
Question 26: Would services in relation to supply of motor vehicles to Government be taxable under GST ? Answer: Supply of a motor vehicle meant to carry more than twelve passengers by way of giving on hire to a state transport undertaking is exempted from tax. The exemption is applicable to services provided to state… Read More »
Question 25: What is the scope of ‘pure services’ mentioned in the exemption notification No. 12/2017-Central Tax (Rate), dated 28.06.2017? Answer: In the context of the language used in the notification, supply of services without involving any supply of goods would be treated as supply of ‘pure services’. For example, supply of man power… Read More »
Question 24: Whether reverse charge is applicable to services provided by Government or local authorities ? Answer: Yes, reverse charge is applicable in respect of services provided by Government or local authorities to any person whose turnover exceeds Rs.20 lakhs (Rs.10 lakhs for Special Category States) excluding the following services: (i) renting of immovable property;… Read More »
Question 23: What is reverse charge in GST ? Answer: As per 2(98) of the CGST Act, 2017, ‘’reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4)… Read More »
Question 22: A small business entity is carrying on a business relating to consulting engineer services in Delhi. Does it need to pay tax (under GST) on the services received from Government or a local authority? Answer: If turnover of the entity is less than the limit of Rs. 20 lakhs in a financial year,… Read More »
Question 21: Whether services provided by Government or a local authority to a business entity located in a special category State are subject to tax? Answer: The expression “special category States” provided in Explanation (iii) to section 22 of the CGST Act, shall mean the States as specified in sub-clause (g) of clause (4) of… Read More »