I want to inquire about GST implications regarding a situation i am dealing with.
I have given the full amount to Lucknow Development Authority, Lucknow via Demand draft on 03.05.2017 for the booking of Community Center (marriage lawn n 4 rooms attached with it) for the wedding which is to be held on 04th December 2017. Service Tax charged @ 15% on the rental value.
Now they are asking for submission of another 3% of the increased rate of GST (15%+3%=18%).
Kindly assure me whether i am liable to pay the Tax?
Kindly response n solve my query ASAP.
11 Replies
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 04 August 2017
@ naman.....why no??
Tomy Joseph
(Superintendent)
(86 Points)
Replied 04 August 2017
Was an invoice issued before 1.7.17? Section 14(b) of the CGST Act may be referred in this regard.
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 04 August 2017
As per my opinion section 14 will not apply.....because section 14 is for change in rate of tax under gst ....this is not a case of change in rate but it is a change in tax.....
however still in my opinion no additional tax should be paid if payment has been made in advance......as if you read time of supply section than you will find that in case of advance payment has been made than time of supply shall be date of payment......as date of payment is before 1st July hence time of supply shall also be before 1st July.....and as gst was not leviable before 1st July, hence gst cannot be leviable.....so if service provider is asking additional payment than he is wrong.......
many people now a day are looting in the name of gst to innocent people....that might be the case.....if he still don't understand than you can not do anything as you cannot postpone marriage for 3% tax....the most you can do is to change the venue which will be combersom and you might have to pay more price for that now......if you pay him additional tax than ask for revised invoice first on which gst is charged.....
however still in my opinion no additional tax should be paid if payment has been made in advance......as if you read time of supply section than you will find that in case of advance payment has been made than time of supply shall be date of payment......as date of payment is before 1st July hence time of supply shall also be before 1st July.....and as gst was not leviable before 1st July, hence gst cannot be leviable.....so if service provider is asking additional payment than he is wrong.......
many people now a day are looting in the name of gst to innocent people....that might be the case.....if he still don't understand than you can not do anything as you cannot postpone marriage for 3% tax....the most you can do is to change the venue which will be combersom and you might have to pay more price for that now......if you pay him additional tax than ask for revised invoice first on which gst is charged.....
Juhi
(Student)
(34 Points)
Replied 04 August 2017
Thank you so much Sir @ CA Akhilesh Kumar Kandpal
You've provided the best answer... I was also thinking that he is trying to take advantage of the unawareness
You've provided the best answer... I was also thinking that he is trying to take advantage of the unawareness
Juhi
(Student)
(34 Points)
Replied 04 August 2017
But the thing is.... It is a Local Authority and for arguing with them... I have to give them a proof/document support of inapplicability of GST...
Please suggest
Please suggest
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 04 August 2017
There is no oficial circuler...in that case you have to make him read and understand law which will be a real pain........but let's try......
Following are the provisions/rules which suggest that only service tax can be leviable and not gst-
1. Rule 3 of Point of Taxation Rules' 2011 of service tax says point of tax is the date of payment or date of invoice, whichever is earlier- in this case date of payment is in may, hence point of tax is in may.
2. Instead of point of tax gst use the term time of supply. Sec 13 of cgst act deals with time of supply. Section 13 opens with "the liability to pay tax on services shall arise at the time of supply determined in accordance with the provisons of this section". In summary section says if advance has been paid than the time of supply is the date of advance and the date of invoice, whichever is earlier. As again date of payment of advance in may, the time of supply is also may.
Now both acts says that tax is to be paid in May. And GST came into force from July. Hence government has no jusrisdiction to ask gst on this payment.
Instead of giving him proof you should ask him to give you proof that where is it written in gst law that gst need to be paid in this transaction.
CA Akhilesh Kumar Kandpal
(Proprietor A K Kandpal & Associates)
(1442 Points)
Replied 04 August 2017
further section 142(11)(c) of cgst act says that no tax on service is payable under this act to the extent the same is leviable under the existing act...
Juhi
(Student)
(34 Points)
Replied 06 August 2017
I can't Thank you enough Sir...
I got such a relief from the solution you provided...
I was tensed not bcoz i had to pay more but i knew i was being fooled n i can't help it...
You've given me power i.e. Knowledge...
Thanks alot Sir @ CA Akhilesh Kumar Kandpal
I got such a relief from the solution you provided...
I was tensed not bcoz i had to pay more but i knew i was being fooled n i can't help it...
You've given me power i.e. Knowledge...
Thanks alot Sir @ CA Akhilesh Kumar Kandpal
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