Postal Services

Page no : 2

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

welcome sir :))

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Tamil Selvan S (110 Points)
Replied 30 January 2018

keep supporting my elder sister !

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

yeah sure.. :))

Tamil Selvan S (110 Points)
Replied 30 January 2018

ABC Limited, a business entity have received some services from the govt which is to be taxed under reverse charge:

Case (1) The turnover of the business entity have exceeded the specified turnover limit but the value of service is Rs.4000/- . Now, is the business entity liable to pay GST or not ?

Case (2)The turnover of the business entity have not exceeded the specified turnover limit but the value of service is Rs.8000/-. Now, is the business entity liable to pay GST or not?

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

case (1) no. bcoz its cover under exemption
. service provide by govt to BE where consideration is less than 5000

case (2) NO since any servi provided by govt to small BE.is EXEMPT

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Tamil Selvan S (110 Points)
Replied 30 January 2018

so, if a B.E want to pay tax under reverse charge,
it have to break these 2 conditions... right?

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

there are some exemption PROVIDED
ANY SERVICES PROVIDE BY GOVT TO BE ARE TAXABLE EXCEPT EXEMPTIONS WHICH ARE PROVIDE

so first read those exemption.. then you will get clarity

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

https://www.indiafilings.com/learn/gst-exemption-list-services/

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

point 81,59,58,51,49,53,52,39,45,46
read these points in above-mentioned link
service provide by govt to BE EXEMPT

Tamil Selvan S (110 Points)
Replied 30 January 2018

yeah sure ... I read all those..
finally i consolidated the chapter..

can u please tell me whether the following statements are correct or incorrect:

1) SERVICE : Postal Service, Aircraft/Vessel Services and Transportation of goods or passengers
SUPPLIER OF SERVICE : Government
RECIPIENT OF SERVICE : Non - Business Entity.
TREATMENT : FCM - Govt will pay GST.

2) SERVICE : OTHER THAN Postal Service, Aircraft/Vessel Services and Transportation of goods or passengers
SUPPLIER OF SERVICE : Government
RECIPIENT OF SERVICE : Non - Business Entity.
TREATMENT : Exempted from GST.

3) SERVICE : Postal Service, Aircraft/Vessel Services and Transportation of goods or passengers & ALSO RENTING OF IMMOVABLE PROPERTY.
SUPPLIER OF SERVICE : Government
RECIPIENT OF SERVICE : Business Entity.
TREATMENT : FCM - Govt will pay GST.

4) SERVICE : OTHER THAN Postal Service, Aircraft/Vessel Services and Transportation of goods or passengers & ALSO RENTING OF IMMOVABLE PROPERTY.
SUPPLIER OF SERVICE : Government
RECIPIENT OF SERVICE : Business Entity.
TREATMENT : RCM - B.E will pay GST except those specified exemptions. (Which u told me to read)

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Tamil Selvan S (110 Points)
Replied 30 January 2018

oh..thank u so much :-)) .. i have read those exemptions in my books ! yes.. i read all those !

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

first thing those 3 services in WHICH FORWARD CHARGE applies... whether it is provided to BE or NON BE... GOVT will pay tax
whether it is small BE

whatsoever exemption are given that doesn't apply to those 3 services.. got it ?
POSTAL SERVICES - provided to ANY PERSON(included BE) except CG SG UT

TRANSPORTATION OF GOODS , PASSENGERS FORWARD CHARGE APPLIES provided to ANY PERSON INCLUDING GOVT OR BE

SERVICE IN RELATION TO AIRCRAFT OR VESSEL. -provided to ANY PERSON INCLUDING BE,GOVT ,,,, FORWARD CHARGE APPLIES

EKTA MEHTA (ARTICLE) (86 Points)
Replied 30 January 2018

yess yourall points are correct :))
actually I skipped ur 3rd point so thts y I explain. :)

Tamil Selvan S (110 Points)
Replied 30 January 2018

thank you .. and i hope point no.2 , 3 & 4 are also crt...

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Tamil Selvan S (110 Points)
Replied 30 January 2018

thank u so so much.. this much of clarity is becoz of you ! thank u ! its an ambiguity i was carrying in my mind for long days (even wen i studied service tax) ..TQ !! :-))