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Gst sec 34(2)

587 views 1 replies

Dheladiya I&T

9 Points Joined June 2018

Hello

I do not understand the below mentioned proviso of section 34 (2)

" Provided that no reduction in output tax liability of supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person"

What is the meaning of incidence of tax and interest on such supply?

Replies (1)

Pankaj Rawat

GST Practitioner

55067 Points Joined June 2017

As per the proviso supplier is not allowed to pass on such benefit , as he will not get reduction in his output liability !!

However for example u can take example of exports with igst, if such supplier had taken igst amount from the receipient which he was not supposed to do so , it will be amount to passing on such incidence of tax !!