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No Consideration - taxability

28 December 2018

If there is no consideration for a supply ,which is liable for Reverse Charge Mechanism,How practically buyer will pay the tax??.how invoice will be raised???

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9 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 28 December 2018

Can You elaborate Your query...?!

Also think about taxable supply and Rcm related supply...

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NANDHUhu D (69 Points)
Replied 28 December 2018

How practically you will pay tax under reverse charge mechanism for which no consideration is paid.???No invoice will be issued ,how can we claim input tax credit,?how we pay tax?

Naga Raju (30 Points)
Replied 28 December 2018

if there is no consideration then why you will pay gst and how will u claim gst...

NANDHUhu D (69 Points)
Replied 28 December 2018

section 7(C) read with schedule 1 conveys No consideration transaction as supply

pritesh (CA Final student) (7101 Points)
Replied 28 December 2018

There is no consideration..no need to pay gst and on that product u cannot claim itc if you are giving from business.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 29 December 2018

But gst can be claim when i have deposited it towards RCM .... so kindly clarify your query with example

NANDHUhu D (69 Points)
Replied 29 December 2018

yes Mr.pankaj Rawat,you are right ,in GST Even transactions for no consideration is charged to GST TAX between related parties , holding & subsidiary ,( Section 7(C)with schedule 1).

But in transaction for which there is no consideration but GST will be there by estimating market value i think so.Now for no consideration transaction there is no Invoice,then how u pay tax to government

Ravi SADhiyan (Practice) (4510 Points)
Replied 29 December 2018

Give Example in which Service / Goods you will asked query

Ravi SADhiyan (Practice) (4510 Points)
Replied 29 December 2018

Originally posted by : NANDHUhu D
	yes Mr.pankaj Rawat,you are right ,in GST Even transactions for no consideration is charged to GST TAX between related parties , holding & subsidiary ,( Section 7(C)with schedule 1).But in transaction for which there is no consideration but GST will be there by estimating market value i think so.Now for no consideration transaction there is no Invoice,then how u pay tax to government

Services received from a provider of service located in a non taxable territory by –
(a) the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession;
(b) an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) for the purposes of providing charitable activities; or
(c) a person located in a non-taxable territory:
Provided that the exemption shall not apply to –
(i) online information and database access or retrieval services received by persons specified in entry
(a) or entr(b); or
(ii) services by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India received by persons specified in the entry.

If Your Query related to Import of Service Receive By Individual for Personal Purchase than that service is also exempt as per Sl.No 99 of Exemption

For Example -1

Mr A receive service of Architect ( Resident of China ) for Personal House made

Than Above service is Exempt under GST

For Example-2

If XYZ ltd ( China ) Provide to service in Delhi of Archritect and Receiver of Service is PQR Ltd ( Russian )

Than Above service also exempt