Benefit of Third Proviso to Rule 28 in case of actual consideration

[Abhijeet Mane]

Hi If the Company A has recevied the actual consideration from related party (Let say 1000 Rs) for providing services. Related Party is eligible for Full ITC then also whether the Company A can take benefit of Third Proviso to Rule 28 and pay GST at any value including NIL Value

[Mary Bridges]

When Company A receives actual consideration from a related party (e.g., Rs 1000) for services and the related party is eligible for full ITC, Company A can indeed benefit from the third proviso to Rule 28. This allows GST to be paid on any value, including NIL, as long as the recipient is eligible for full ITC. Billing Software simplifies the invoicing process and ensures you're compliant with GST rules!

[Shilpi Jain]

If the recipient is eligible for full ITC then certainly nil is also a possible value. Circulars have clarified this view.

[Tarun Agarwalla]

I hope we may read 2nd proviso to rule 28(1) in place of third proviso.

thank you

AI Summary

Can Company A Pay NIL GST Under Third Proviso to Rule 28 When Receiving Consideration from Related Party with Full ITC? A discussion on the applicability of the third proviso to Rule 28 under GST law is presented, focusing on whether Company A can pay GST at any value, including NIL, when receiving actual consideration from a related party eligible for full Input Tax Credit (ITC). Responses indicate that Company A can indeed pay GST at NIL value under these circumstances, as clarified by relevant circulars. One contributor suggests reviewing the second proviso to Rule 28(1) instead of the third proviso. The discussion emphasizes compliance with GST rules through appropriate billing software.