Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the HPGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the HPGST Act; applicability of notification No. 50/2018-State Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods)related to GST.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... South Zone, North Zone, Central Zone, H.P. 2. The Joint Commissioner of State Taxes and Excise, Central Zone, North Zone, Flying Squad, NZ/ SZ/ CZ. 3. The Dy. Commissioner of State Taxes and Excise, Shimla, Solan, BBN Baddi, Sirmour, Bilaspur, Hamirpur, Mandi. Kullu, Chamba, Kangra, Revenue Distt Nurpur and Una, H.P 4. The Asstt. Commissioner of State Taxes and Excise, Incharge Distt. Kinnour, H.P Dated Shimla-9 the 13th March, 2019. Madam/Sir, Subject: Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the HPGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the HPGST Act; applicability of notificati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cipient of such supplies. 3. A doubt has arisen about taxability of intra-State and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by the Central Government, State Government, Union territory or a local authority to an unregistered person. 4. It was noted that such supply to an unregistered person is also a taxable supply under GST but is not covered under notification No. 36/2017-State Tax (Rate) dated 15.11.2017 and notification No. 37/2017- Integrated Tax (Rate) dated 13.10.2017. 5. In this regard, it is clarified that the respective Government departments (i.e. Central Government, State Government, Union territory or a local authority) shall be liable to get registere....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is further clarified that since the tax has been paid late in contravention of the provisions of the HPGST Act, a general penalty under section 125 of the HPGST Act may be imposed after following the due process of law. 3. In case a debit note is to be issued under section 142(2)(a) of the HPGST Act or a credit note under section 142(2)(b) of the HPGST Act, what will be the tax rate applicable - the rate in the pre-GST regime or the rate applicable under GST? 1. It may be noted that as per the provisions of section 142(2) of the HPGST Act, in case of revision of prices of any goods or services or both on or after the appointed day (i.e., 01.07.2017), a supplementary invoice or debit/credit note may be issued which shall be deemed ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is with the Government. 5. What is the correct valuation methodology for ascertainment of GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961? 1. Section 15(2) of HPGST Act specifies that the value of supply shall include "any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the CGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier." 2. It is clarified that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS....