Role of AS-7 for GST angle

[Rajesh Kumar]

Sir/madam

What is the role of AS-7 for the purpose of GST duty angle? Which information is concern to GST purpose and what is the method of calculation for GST angle?

Is it helpful for the quantification of GST?

[Shilpi Jain]

For the purpose of calculating GST the valuation provisions would be relevant and when GST has to be paid , the time of supply provisions will be relevant. accounting standards will not be of relevance.

[KASTURI SETHI]

Dear Querist,

There are two case laws (pertaining to pre-GST era) which talk of how AS-7 can be useful in various ways regarding correct and proper payment of GST. These are worth reading.

1. SGS Construction & Developers (P) Ltd. Vs.Commissioner ST, Delhi - 2019 (1) TMI 1820 - CESTAT NEW DELHI

2. FIRM FOUNDATIONS & HOUSING PVT. LTD. Versus PR. COMMR. OF S.T., CHENNAI - 2018 (4) TMI 613 - MADRAS HIGH COURT

AI Summary

AS-7 relevance to GST: limited direct effect; valuation and time-of-supply rules determine GST, pre GST cases noted AS-7 use.
AS-7 has limited direct bearing on GST liability, which is governed by statutory valuation provisions and time-of-supply rules; accounting standards do not determine GST computation, though pre GST case law recognised AS-7 as an evidentiary tool to explain accounting treatment of construction contracts and assist in quantifying elements relevant to taxable value.