Deemed supply and Input credit availabilty of same

[Vinod Maheswari]

Dear Sir

1) What is deemed supply. Please provided example for that. .

2) if I am providing railway wagon loading services to my customer who pay railway freight himself. I am getting consideration for Loading only. Now if loading is not done as per railway parameter than they charges additional freight called under loading / Over Loading charges and recovered the same from my customer..

Now customer instead of taking credit note from me he himself issue Tax Invoice for recovery of under loading/ Over loading charges paid to railways . This invoice issued as per CGSTSchedule II (e) which says 'agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act'.

Now my question is

a) Can I take Input credit of the same .(although as per condition of Section 16 (2) (b) one has to received the services). So can I say I have received the services while its deduction for me .

b) Can this fall under deemed supply.

c) After amendment in CGST Act w.e.f 30 Aug 2018, Schedule II is not consider under Scope of supply and schedule II only identified whether a supply as per section 7(1) is supply of services or supply of goods. So now with this amendment recovery of any amount on account of deficiency in services will be come under scope of supply or not.

Please provide your valuable comment.

AI Summary

GST Discussion: Input Credit and Deemed Supply for Railway Wagon Loading Services under CGST Schedule II A discussion on a forum addresses questions about the Goods and Services Tax (GST) related to deemed supply and input credit. The original query involves a scenario where a service provider offers railway wagon loading services, and additional freight charges are incurred due to loading discrepancies. The customer issues a tax invoice for these charges under CGST Schedule II. The questions raised include whether input credit can be claimed, if this situation qualifies as deemed supply, and the implications of amendments to the CGST Act. The response suggests that tolerating service qualifies as deemed supply, and input credit can be taken.