Issues in Business Goods put to Private use by an assessee under GST : ICAI

By | October 3, 2017
(Last Updated On: October 3, 2017)

Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

13. Business Goods put to Private use by an assessee

Clause 4(b) of Schedule II of CGST Act, 2017 as specified in Section 7 provides that where,
by or under the direction of a person carrying on a business, goods held or used for the
purposes of the business are put to any private use or are used, or made available to any
person for use, for any purpose other than a purpose of the business, whether or not for a
consideration, the usage or making available of such goods is a supply of services.

Issue

As per the provision, in the event, a car is owned by a taxable person in the name of a
company and the same is being used by him occasionally for his personal use then such
personal use would be considered as supply of service and would be subject to GST. In the
given scenario, how should the taxable person determine the value of such services (personal
use) for the purpose of leviability of GST?

Further, as per Section 17(1) Input Tax Credit on such services (used for other purpose)
would not be available. This is a double jeopardy to the Taxable person.

Suggestions
• It is suggested that an option be given to assessee to adopt some presumptive value
of the use of specified assets for personal purposes based on the quantum of usage
made by him.
• Further, if the Government intends to levy GST on such services (personal use) then
Input Tax Credit on such services also be allowed to the Taxable person.

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

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