Page 13 - Ch3_RCM

Answer:-

i Legal Provision:- As per section 9(3) of CGST Act, in case of a GTA service,
Ü where GST is payable @ 5% without ITC and recipient is one of the specified recipients, tax is payable
under reverse charge by the recipient of service &
Ü where GST is payable @ 12% with ITC, tax is payable under forward charge by the supplier of service.
Discussion & Conclusion:-

Ü In the given case, GTA is paying IGST @12%.
Ü Also, the recipient of service is other than specified recipient, i.e., unregistered sole proprietorship
firm.

Ü Therefore, GST is payable by "Veer Transport", a registered GTA under forward charge.
Note:- GTA service is exempt from GST in this question as recipient is other than specified recipient,
i.e., unregistered sole proprietorship firm. But, this exemption is ignored as the question specifically
requires the students to ignore the exemptions available, if any.
ii Legal Provision:-

ÜAs per section 9(3) of CGST Act, if services are supplied by an author by way of transfer of a copyright
covered under section 13(1)(a) of the Copyright Act, 1957 relating to original literary works to a
publisher located in the taxable territory, then GST is payable on reverse charge basis by recipient.

Ü The Author can pay tax under forward charge if the author is a registered person.
Discussion & Conclusion:-
Ü In the given case, the author is an unregistered person.
Ü So, the option of paying tax under forward charge is not available to him.

Ü Therefore, PQR Publications Ltd. (i.e. the recipient) is liable to pay GST under reverse charge.

CCP 03.03.16.00
State the person liable to pay GST in the following independent cases provided recipient is located in
the taxable territory:-

(a) Services provided by an arbitral tribunal to any business entity.
(b) Sponsorship services provided by a company to an individual. [ Study Mat]
Answer:-
a. Legal Provision:-

As per section 9(3) of CGST Act, if services are provided or agreed to be provided by an arbitral
tribunal to any business entity located in the taxable territory, then GST is payable under reverse
charge by recipient.
Discussion & Conclusion:-

Therefore, in the given case, the business entity is liable to pay GST under reverse charge .
b. Legal Provision:-
As per section 9(3) of CGST Act, if sponsorship services are provided by any person to any body
corporate or partnership firm located in the taxable territory, then GST is payable under reverse

charge by recipient.
Discussion & Conclusion:-
Ü In the given case, sponsorship services have been provided to an individual.
Ü Thus, the reverse charge provisions will not be attracted here.

Ü So, company i.e. the supplier is liable to pay GST under forward charge.

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