Common GST Errors -Part 3

By | February 15, 2019
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(Last Updated On: February 15, 2019)

Common GST Errors -Part 3 जीएसटी की आम गलतियां भाग 3

(INCORRECT DETERMINATION OF PLACE OF SUPPLY)

Wrong discharge of GST (under RCM) without determining place of supply.

It may be possible that same is not eligible for full ITC.

Example: Incorrectly treating Import of services from overseas vendors.

GST department may also dispute such ITC stating that the same to be wrongly paid.

Incorrect determination of place of supply resulting in incorrect type of tax discharged.

For example, paying CGST, SGST for an inter-state  supply (or vice-versa).

Considering Ship to location as place of supply in a Bill to-Ship to transaction.

Location of Supplier – Mr A Place of delivery of goods – Office of Mr B Principal place of Lakshman who instructed delivery to Mr B Place of supply for Mr A Type of tax payable by Mr A
Punjab Punjab  Haryana Haryana IGST at Punjab

Not charging integrated tax for renting of immovable property located in a state other than the registered state.

Treating a non-taxable transaction as taxable (or vice versa) by virtue of incorrect place of supply.

Considering registered location of recipient as per GSTIN instead of delivery location for supply of goods

Location of Supplier – Mr A Location of Supplier Location of recipient Location of goods at the time of delivery Tax Payable
Manufacture of moulds by job-worker (supplier), sold to the Principal, but retained in job worker’s premises Punjab  Haryana Punjab CGST and SGST   (As Place of supply in Punjab)

Considering activity as export of services despite goods being made physically available by the recipient to the supplier.

Wrongly Considering location of goods as place of supply instead of registered recipient location for goods transport services.

Location of Supplier of Transport Services– Mr A Location of Goods Location of Registered recipient Place  of Supply Tax Payable
Punjab Punjab  Haryana Haryana IGST

Intermediary services considered as export of services, although place of supply is the location of the supplier of service.

Location of Supplier ( Commission Agent)– Mr A Services performed Location of recipient Place  of Supply Tax Payable
Punjab  (India) Identifying buyers in India  China Punjab (India) IGST

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

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