Part 2 – Clarifications Made By GST Council

In our previous article, we discussed some clarifications made by GST Council. Here we will discuss Part 2 of the clarifications made by GST Council.

People are facing many problems in registration and filing of returns. Hence, the GST Council issues notifications or announce clarifications on their twitter handle for such queries.

The main reason behind all this is the miscalculations and lack of preparations by the government.

Part 2 – Clarifications made by GST Council via Twitter Handle @askGSTech & @askGST_GOI

 Inter-State Supply by Unregistered Person

• An unregistered person cannot make inter-state supplies except in terms of  Notification 32/17-Central Tax dated 15/09/17. The purchaser will be liable u/s 9(4) to pay GST under Reverse Charge Mechanism.

ITC on CSR Expenses

• Corporate companies can claim ITC under GST for CSR expenses incurred by them.

Insurance and Freight for Exports

• Insurance or freight paid and reported in an export invoice along with IGST, cannot be treated as export of service.

Collection of GST Above MRP

• MRP (Maximum Retail Price) includes all taxes. Thus, GST cannot be charged over and above MRP.

Counter Sales to Interstate Address

• Counter sales made to the purchaser whose address on the invoice is of another state than it would be treated interstate sale.

Supply to SEZ

• Amount of IGST needs to be mentioned on the invoice made to SEZ.

Registration for Transporter

• A transporter who operate 100% on RCM and their GST liability is totally by the receiver of service need not required to register under GST according to Notification No-5/2017 of Central Tax.

Reverse Charge

• GST paid on RCM for July on 20 Aug can be utilized against July liability.
• Expenses incurred outside India for business purpose by a Director of a company are liable for the reverse charge if the nature of supply imports of goods or services.

You can download GST templates like GST TRAN-1, GST Input Output Tax Report, and GST Export Invoice from here.

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