Page 11 - CHAPTER 3 (1).cdr

v. Service provided to Star Industries Ltd., USA, value being ₹ 7 lakhs. Mr. Altaf, Gujarat Forward 2 Lakhs This entry covered in the exception
Determine the taxable value as well as tax liability of The Professionals (registered u/s 10) C h a r g e part of N/N 29/2018 and hence tax
Security-Pune assuming CGST @ 9% or SGST @ 9% and IGST @ 18%. liability will be on The Professionals
Security-Pune under forward charge
Answer:- Calculation of Tax liability of professional Security
Star Industries Ltd., Forward 2 Lakhs RCM will apply only if service provided CH 3
Category of Taxabi- Taxable Reason
USA C h a r g e to registered person located in taxable
Person lity value(`) territory. As Star Industries located
XYZ Pvt. Ltd. Reverse - As pe section 9(3) any person in USA which falls outside the taxable
(Registered) Charge other than body corporate providing territory, The Professionals Security-
Pune will be liable to pay tax on such
security service to registered Reverse Charge & ECO
service
person, then registered person
Note:- If it fall under zero rated
located in taxable territory shall be supply then no GST is payable
liable to pay tax on such service Total 29 Lakhs

Reverse charge will be applicable only Tax liability of The Professionals Security - Pune will be as follows:-
Sindh Co-op. Credit Forward
8lakhs if service recipient is Registered
Society, Mumbai Charge S. NO Particulars ` in lakhs CGST @ 9% SGST @ 9%IGST @ 18%
person and Sindh Co-op. Credit
(Un-registered) 1 Intra-State Supply 8 72,000 72,000
Society, Mumbai is not registered
2 Intra-State Supply 14 - - 2,52,000
under CGST Act. Hence The
3 Export 7 - - 1,26,000
Professionals Security-Pune will be
Total Tax liability 72,000 72,000 3,78,000
liable to pay tax on such service
* Note:- If The Professionals Security – Pune satisfies the conditions laid down in
D e p a r t m e n t o f Forward 12 lakhs This entry covered in the exception section 16 of IGST Act, 2017, then they can avail the benefit of zero-rated supply in
Charge
Central Government, part of N/N 29/2018 And hence tax case of export service provided to Star Industries Ltd. USA
liability will be on The Professionals
Bangalore (reg. only
Security-Pune under forward charge
for deducting 10. Services provided by way of renting of any motor vehicle
TDS)
CCP 03.10.19.00
-
Municipal Reverse RCM will apply if establishment or
Amco India Ltd. a trader engaged in supply of goods & services at the intra state
Corporation Charge department of CG or SG or local
(registered & level. Its aggregate turnover for the PFY was ₹ 12.75 lakhs. In CFY upto the
authority registered under CGST Act
making taxable month of September 2019 the aggregate turnover of outward supply of Amco
supply) for making taxable supply of goods
Ltd. was ₹ 10.35 lakhs.
or services
Amco Ltd. does not get itself registered under GST as the threshold limit

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