Page 10 - CHAPTER 3 (1).cdr

read with relevant notification & hence forward charge will apply for such 08. Services supplied by Individual Direct Selling Agents
service. Thus, the author being the service provider will be liable to pay GST on CCP 03.08.17.00
such service.
Mr. Vishal want a loan ` 10,00,000 & taken a service of individual Mr. Rudra who is
c) GST on service provided or agreed to be provided by a music composer, a
CH 3 a Direct Selling agent of HDFC bank & bank pay the commission to Mr. Rudra
photographer, artist or the like to a music company, producer etc., located in 2% of loan granted to Mr. Vishal for giving a customer to the bank. Calculate the
Reverse Charge & ECO d) No, answer will be same as above given in point (c) Answer:- As per sec 9(3) of CGST Act, In the case of services provided by an
taxable territory is payable under reverse charge. Recipient will be liable to pay tax
amount of GST payable if GST @18% & who is liable to pay GST?
under reverse charge as per entry no. 9 of N/N 13/2017 CT(R).

(DSA) other than body corporate, partnership or
individual Direct Selling Agent
limited liability partnership firm to any banking company or non-banking financial
CCP 03.07.16.00
company, located in a taxable territory, the liability to pay GST shall be upon
Chetan Bhagat (unregistered) a renowned writer and author of 2 States

transferred the copyright of his published book 2 States to Balaji Publications
In a given case the HDFC bank to whom service is render shall be liable to pay tax.
for a consideration. Examine the tax implications as per GST Act? recipient i.e. reverse charge is applicable.

Calculation of GST payable =`10,00,000 x 2% x 18%
Answer:- As per section 9(3) of CGST Act read with relevant notification, Services = `3,600
supplied by an author by way of transfer or permitting the use or enjoyment of a
copyright covered under sec 13(1)(a) of the Copyright Act, 1957 relating to original 09. Security services
literary works to a publisher, located in the Taxable territory reverse charge shall be CCP 03.09.18.00
applicable.
The Professionals Security-Pune, a firm of security agency providing services by
Thus in the given case the liability to pay GST shall be upon Balaji Publications as it way of supply of security personnel to following categories of persons:
is the recipient of service. I. XYZ Pvt. Ltd., (company registered under CGST Act, 2017), valuing ₹ 10 lakhs
Nothing contained in this notification shall apply if the author is registered under ii. Sindh Co-operative Credit Society, Mumbai which is not registered under
CGST Act & GST is payable under forward charge if he filed a declaration that, CGST Act, 2017, worth ₹ 8 lakhs
v he exercises the option to pay central tax on the service under forward charge iii. Department of Central Government located at Bangalore which has taken

and registration under CGST Act, 2017 only for the purpose of deducting tax u/s 51
v comply with all the provisions as they apply to a person liable for paying the and not for making any taxable supply of goods or services, valuing ₹ 12
tax in relation to the supply of any goods or services or both and lakhs
v he shall not withdraw the said option within a period of 1 year from the date iv. Pune Municipal Corporation registered under CGST Act, 2017 for the purpose of
of exercising such option; making taxable supply of goods or services. The value of service provided was
in prescribed form. ₹ 4 lakhs.

iv. Mr. Altaf, from Gujarat (registered under section 10 of CGST Act, 2017) of ₹ 2
lakhs
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