AI Drafter 
TaxTMI 
TaxTMI 
FAQ for GST on IT/ITES dated 18-08-2017
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....s involving a temporary transfer or permitting the use or enjoyment of any intellectual property right. The other implication is that the supplier of software services would not be eligible for the composition scheme. Question 3 : 'A' is a dealer in Computers and Computer parts having turnover of ₹ 8 lakh in a year; does 'A' have to register under GST? Answer : Every supplier located in a State or Union territory, whose "aggregate turnover" in a financial year exceeds twenty lakh rupees, is liable to be registered under GST. This limit of turnover for a special category State is ten lakh rupees. 'A', whose aggregate turnover is only ₹ 8 lakh in a year, is therefore not liable to registration. Question 4 : The registered person 'B' receives small portions of software code from individuals which he then integrates and supply as a package to clients. These individuals are having small turnover of ₹ 5 to 10 lakh, and therefore are not registered in GST. Whether there is any liability on 'B' in respect of services provided by such individuals? Answer : If the supplies are made by unregistered suppliers, GST is liable to be paid by the recipient,....
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.... 9 : How to determine the location of the recipient? Answer : Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does not have a place of business, his usual place of residence is outside India. Question 10 : Would I be liable to pay GST on reverse charge even if the foreign supplier of software from whom I buy for use in my firm registered under GST was to accept the payment in Indian Rupees? Answer : Yes, you would be liable to pay GST. A supply is treated as an import of service if the following conditions are satisfied : (1) the supplier of service is located outside India; (2) the recipient of service is located in India; and (3) the place of supply of service is in India. The place of such supply would be taken to be the location where the firm is registered (in GST) and the supplies would attract integrated tax (IGST). The factum of which currency was use....
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....eed to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration? Answer : (1) Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However, a single registration can be taken for all your SEZ units within a State, whether located in one SEZ or more than one SEZ. (2) A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017). Question 15 : I have a unit in the DTA and another in the SEZ; can I take a common registration? Answer : No. A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State, shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017). Question 16 ....
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....ice is issued. Question 20 : What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit? Answer : As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced. Question 21 : An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to 'D', who bills the OEM for the services he provides to the customer. What is the tax liability of 'D'? Answer : 'D' is providing service to the OEM. GST is payable on the value of any supplies made by 'D' to OEM i.e. in respect of bills raised by 'D' on the OEM. Question 22 : How will the defective parts be sent to the mother warehouse/repairing centre for repair by the downstream repairing c....