Recovery against non - issuance of Form - C

[Kaustubh Karandikar]

Amount recovered from the customers in the financial year 19 - 20 towards non – issuance of Form – C (relating to VAT regime). Whether GST is required to be paid on it?

AI Summary

GST Not Applicable on Recoveries for Non-Issuance of Form-C in VAT Era, Say Experts; Pure Agent Transaction A discussion on a forum revolves around whether GST is applicable on amounts recovered from customers due to the non-issuance of Form-C during the VAT regime, specifically for the financial year 2019-20. The supplier had to pay a higher CST rate due to the absence of Form-C and later recovered this amount from the customer. Experts in the forum, including Kasturi Sethi and Sadanand Bulbule, concur that GST is not applicable on such recoveries as they fall under the category of 'pure agent' transactions. The discussion also touches on the hypothetical nature of queries and their role in proactive problem-solving.