GST provisions for purchase of services from Ladakh (J&K)

[manish k]

We are registered under GST & providing tourism services to our clients. We have done payments for a hotel room & tax services in Ladakh and bundled them as a tour package for our client. The hotel has not provided us a tax invoice and stated that Ladakh region is exempt from taxes. The taxi provider is also unregistered with GST and has not provided us a tax invoice.

Now what should we do for proper GST invoicing & compliance? We have already paid taxes through GSTR 3B on total value of our tour package. For GSTR 1, shall we fill our above purchase details as purchase from unregistered vendors and pay the appropriate taxes and then claim our taxes back under reverse charge mechanism (RCM) ? Kindly suggest.

[Rajagopalan Ranganathan]

Sir,

Ladakh is in the State of Jammu & Kashmir. According to Section 1 (2) of CGST Act, 2017CGST Act 2017 as amended by THE CENTRAL GOODS AND SERVICES TAX (EXTENSION TO JAMMU AND KASHMIR) ACT, 2017 NO. 26 OF 2017 CGST is leviable w.e.f. 8-7-2017 on supply of goods or services or both is liable to gst. Please check up with your supplier whether their turnover is below ₹ 20 lakhs/10 lakhs per annaum.

[KASTURI SETHI]

In my you are not required to pay GST . You can claim refund of excess paid on the basis GSTR 3 B return filed by you. You can apply for refund manually. Approach your jurisdictional Range Officer.

[DR.MARIAPPAN GOVINDARAJAN]

What is the period involved in this case?

[Ganeshan Kalyani]

Period is important because GST is now not applicable on inward ( purchased ) goods or service from an unregistered dealer.

[KASTURI SETHI]

From the query, it appears that it has happened recently. Not more than one month old. There is no doubt about the importance of period in this situation.

[manish k]

Dear all,

Thanks for taking some time and replying to my queries.

Rajgopalan Ranganathan:Suppliers turnover is above 20L/10L for the hotel and under 10L for the taxi provider.

Marappan Govindrajan/ Ganesh Kalyani/ Kasturi Sethi:About Period involved in Purchases :Purchases are from the month of July to October 2017.

Kindly suggest how to show these purchases in GSTR 1? Is is mandatory to show the purchases in GTR 1?

AI Summary

GST applicability on services from Ladakh - verify supplier registration and claim refund for excess tax paid. GST became applicable in Jammu & Kashmir (including Ladakh) from the territorial extension of the CGST Act, making hotel and taxi supplies potentially taxable. Verify each supplier's registration and turnover threshold-hotel above threshold, taxi unregistered-and the supply period (July-October 2017). If tax was already paid via GSTR 3B, consider a manual refund application for excess tax and assess whether reverse charge or non levy on unregistered suppliers applied, then reconcile GSTR 1 reporting accordingly.