Rajya Sabha passes all four GST Bills without amendments

Is it now necessary to issue C forms for the inter-state purchases under GST??

Dear Bimal Ji,

CGST Actsection 15, subsection 2, clause b read as under :

(b) any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both;

Dear Sir,

Whether value of free supply of material by recipient of services will be includible under the new Act considering the above or still there is ambiguity as earlier in service tax and the matter is in court.

Thanks

Jaiprakash Ruia

Dear Bimal Ji

Section 17 of CGST Act having following cluases :

(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service;

(d) goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in the course or furtherance of business.

Explanation.––For the purposes of clauses (c) and (d), the expression “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property;

Dear Sir,

What is the significance of using the Word plant and machinery in clause c and plant or machinery in clause d.

Whether it is clear now that input tax credit of construction material like steel and cement used for construction of plant in the course or furtherance of business is available to the assesse.

Whether input tax credit of any type of construction work (service) and material used for repairing ( not capitalized) of plant in the course or furtherance of business is available to the assesse.

Sir, you are highly learned person in this regard and hope to receive the guidance.

Thanks

Jaiprakash Ruia

Dear Bimal Ji

Input credit section clauses read as under :

Provided further that where a recipient fails to pay to the supplier of goods or services or both, other than the supplies on which tax is payable on reverse charge basis, the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice by the supplier, an amount equal to the input tax credit availed by the recipient shall be added to his output tax liability, along with interest thereon, in such manner as may be prescribed:

Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon.

Dear Sir,

What if, the amount is debited to supplier against some Debit Note, May be the supplier is customer also and the invoice of supply is knocked off against the sales invoice due to supplier, w/off of the amount, liquidation clause penalty etc.

Thanks

Jaiprakash Ruia