GST

FAQ on RCM Suspension, GST on advance payments, GTA and TDS Provisions

FAQ on RCM Suspension GST on advance payments, GTA and TDS Provisions

Question 1. If reverse charge is suspended till 31.03.2018, will GTAs have to pay tax under forward charge from now on?

Ans: No, reverse charge is being suspended only for purchases made by registered persons from unregistered persons. Reverse charge liability as notified under section 9(3) of the CGST Act, 2017, will continue to be applicable.

Question 2. Is it correct that one does not need to pay GST on the advance amount received for any supply?

Ans: No, the correct position is that the liability to pay GST on supply of goods shall not arise at the time of receipt of advance. GST shall have to be paid when the supply of goods is made. Please note that this is only applicable for a registered person having turnover up to Rs. 15 crores. This is not applicable for supplies of services .

Question 3. Goods Transport Agencies are refusing to transport goods for unregistered persons saying that they will need to get registered if the consignee is unregistered. Is this correct?

Ans: No, supplies made by a GTA to an unregistered person havebeen exempted from GST. Therefore, a GTA will not need to get registered just because it is supplying GTA services to an unregistered person

Question 4. Can Government departments start deducting TDS from payments made to contractors?

Ans: No, the operationalization of TDS registration and collection under GST has been put on hold till 01.04.2018. 

Question 5. Do Government departments need to compulsorily register for complying with TDS provisions?

Ans: No, since the operationalization of TDS provisions has been put on hold till 01.04.2018, a government department need not compulsorily register just to deduct TDS. If the government department is otherwise liable to pay GST, then it should take registration

Share

Recent Posts

  • Income Tax

Date of digital signature and issue determines date of a notice u/s 148 of Income Tax Act

Date of digital signature and issuance determines the date of a notice u/s148 of the Income Tax Act - ITAT…

1 day ago
  • DGFT

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential)

DGFT authorises IACCIA to issue Certificate of Origin (Non- Preferential) w.e.f. 9th January 2026 In exercise of powers conferred under…

1 day ago
  • Income Tax

Net profit rate may not have variation commensurate to increase of turnover

Net profit rate may not per se experience variation commensurate to the increase of turnover. In a recent judgment, Allahabad…

2 days ago
  • Excise/Custom

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’

Mushroom growing apparatus cannot be classified as ‘agricultural machinery’ under Customs Tariff Heading 8436. In a recent judgment, Hon'ble Supreme…

2 days ago
  • negotiable instrument act

Statutory presumption attached to issuance of a cheque to be accorded due weight – SC

Statutory presumption attached to issuance of a cheque, being one made in discharge of a legally enforceable debt or liability,…

2 days ago
  • tender

Highest bid can’t be discarded on mere expectation of even more higher bid

Merely because the authority conducting auction expects higher bid than the highest bidder is no reason to discard the highest…

2 days ago