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Postal Services

29 January 2018

who will pay gst in case of services rendered by govt like postal services, transportation of goods or passengers, services in relation to vessel or aircraft ?

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37 Replies

EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

government will pay tax in forward charge

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Tamil Selvan S (110 Points)
Replied 29 January 2018

thank you ..
and for other than these 3 services ?
is it exempt or taxable under reverse charge ?

EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

service of renting of immovable property by govt. taxable under FORWARD CHARGE. any other service provide by government to business entity(other than SMALL BE) taxable other REVERSE CHARGE

Tamil Selvan S (110 Points)
Replied 29 January 2018

sorry for asking this again,
but I saw the same point in "exemption from GST" chapter.

I will list that point below:

Services by the Central Government, State Government, Union Territory or local authority excluding the following services:-

(a) Services by the department of posts by way of speed post, Express parcel post, life insurance and agency services provided to a person other than the Central Government,State Government, union territory.

(b) Services in relation to an aircraft or a vessel inside or outside the precints of a port or an airport.

(c) Transport of goods or passengers or

(d) any service, other than services covered under entries (a) to (c) above, provided to business entities.

why did they listed it in exemption chapter ?

Tamil Selvan S (110 Points)
Replied 29 January 2018

and then what do you mean by "Small Business Entity" ?
is there any criteria for that ?

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Tamil Selvan S (110 Points)
Replied 29 January 2018

and then what do you mean by "Small Business Entity" ?
is there any criteria for that ?

EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

any service provided by govt to business entity is taxable, except those on which specific exemptions are given.

CRITERIA FOR DECIDING SMALL BE.=AGGREGATE TURNOVER IS LESS THAN 20 LACS

Tamil Selvan S (110 Points)
Replied 29 January 2018

any service provided by the govt to recipient other than business entity (that is individual, HUF) .. what will be the tax treatment ?

Tamil Selvan S (110 Points)
Replied 29 January 2018

any service provided by the govt to recipient other than business entity (that is individual, HUF) .. what will be the tax treatment ?

EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

first of all BUSINESS ENTITY MEANS ANY PERSON (INDIVIDUAL HUF AOP BOI TRUST COMPANY.etc.....) ENGAGED IN TRADING MANUFACTURING OR ANY OTHER FORM OF BUSINESS

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EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

when govt provide service to BUSINESS ENTITY it will issue tax invoice on which only actual amount will be charged.. no gst will be charge in tax invoice...
BUSINESS ENTITY himself pay tax on it separately to Government ... only after payment BE CAN TAKE ITC of the sme

Tamil Selvan S (110 Points)
Replied 29 January 2018

Thank you so much for ur explanation & for being patient.
I have some doubts at last..
you said that 'any services provided by government to business entity is taxable except some specified exemptions'
what are those exemptions?
(that 4 services - postal, aircraft ......etc)

EKTA MEHTA (ARTICLE) (86 Points)
Replied 29 January 2018

THESE ARE THE SERVICES WHICH ARE EXEMPT IF PROVIDED BY GOVT TO BUSINESS ENTITY
Services provided by Central Government, State Government, or a local authority for such services does not exceed ₹ 5000/-

Nothing of these provisions shall apply to-

services by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, State Government, Union territory;Services in relation to an aircraft or a vessel, inside or outside the precincts of a part of an airport;transport of goods or passengers;

In the case of continuous supply of services provided by the Central Government, State Government, Union territory or a local authority, the exemption shall apply only whether the consideration charged for such services does not exceed ₹ 5000/- in a financial year

Services provided by the Central Government, State Government, Union territory or local authority by way of allowing a business entity to operate as a telecom service provider or use of radio frequency spectrum during the period prior to01.04.2016 on payment of licence fee or spectrum over charges, as the case me;Services provided by the Central Government, State Government, Union territory or local authority by way of-Registration required under any law for the time being in force;Testing, calibration, safety check or certification relating to protection or supply of workers, consumers or public at large, including the first licnsor, required under any law for the time beingin force;Services provided by the Central Government,State Government, Union territory or local authority by way of issuance of passport, visa, driving licence, birth certificate or death certificate.Services provided by the Central Government, State Government, Union territory or local authority by way of tolerating non performance of a contract for which consideration of a contract for which consideration in the form files or liquidated damages as payable to the Central Government, State Government, Union territory or local authority under such contract;Services provided by the Central Government, StateGovernment, Union territory or local authority by way of assignment of right to use natural resources to an individual farmer for cultivation of plants and rearing of all life forms of animals, except the rearing of horses for food, fiber, fuel, raw material or other similar products;Services provided by the Central Government, State Government, Union territory or local authority by way of assignment of right to use any natural resource where such rights to use was assigned by the Central Government, State Government, Union territory or local authority before 01.04.2016.The exemption shall apply only to tax payable on one time charge payable, in full upfront or in installments,for the assignment of right to use such manufactural resources;Services provided by the Central Government, State Government, Union territory by way of deputing officers after officer hours or on holidays for inspection or container stuffing or such other duties in relation to import export cargo on payment of Merchant Overtime charges;Services provided by the Central Government, State Government, Union territory administration under any training programme for which total expenditure is borne by the Central Government, State Government, Union territory administration;