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CCP 03.14.26.00
           From the following information determine the person liable to pay Goods &

           Service tax if both Supplier and Recipient are located in India -
           1) Mr. Atul is an agent of Life Insurance Co. The insurance company pays                                                                                     CH 3
              commission (excluding tax) ` 6 Lakh to him. Mr. Atul claims that no GST is
                                                                                                                                                                            Reverse Charge & ECO
              leviable on services provided by him as his value of taxable service does not
              exceed ` 20 lakhs.

           2) XYZ Ltd. availed services of Vimal Goods transport agency for transportation
              of goods by road from factory located in New Delhi to its Jaipur depot and
              paid freight of       `1, 00,000.
           3)  Infra  structural  support  services  provided  by  Government  to  a  business
              entity: ` 14 Lakh
           4)  Renting  of  immovable  property  services  provided  by  Government  to
              unregistered business entity: ` 18 Lakh

           Answer:-  The provisions applicable are as per section 9(3) of CGST Act and 5(3) of
           IGST Act, the Government via notification 17/2017 CT and Notification No. 14/2017 of
           IGST Act.
           1. In this case Life Insurance Company will be liable to pay GST on reverse charge
             basis. Hence, GST liability shall be `. 6, 00,000 i.e., on the value of commission.

             Mr. Atul's claim that his turnover does not exceeds `. 20 Lakhs has no relevance
             here, because under reverse charge threshold limit is not available.
           2. If GTA pays tax @ 12% with ITC:  In such case normal charge is applicable and
             GTA is liable to pay tax
                     If GTA pays tax @ 5% without benefit of ITC:-  Then reverse charge
             shall be applicable and GST shall be paid by XYZ Ltd. since it is liable to pay
             freight for transportation of goods.

           3. Any service provided by Government  or local authority to business entity in a
             taxable territory the goods & service tax is payable by business entity.
           4. Any service by way of renting of immovable property provided by Government or
             local authority to unregistered business entity then goods & service tax is payable
             by Government

              CA VISHAL BHATTAD          09850850800                       www.vsmartacademy.com                                               V’Smart Academy          55
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