Question:
Exemption related to a purchase from an Unregistered dealer by a Registered dealer is INR 5,000 per day per supplier?, Only CGST is exempt on the same as per the notification 8/2017? if the notification also applies on RCM category of other goods and services?
Suggested response:
As per the notification no.8/2017 issued on 28 June 2017 the below are the point wise responses -
1- The notification covers INR 5,000 as overall limit and will not be available based on supplier wise, hence one has to keep a track on this limit which is exempt from tax only if it is UPTO INR 5,000
Care must be taken about the applicability of the notification which is for goods or services or both.
2- The notification has been issued under CGST act and hence exempt from CGST act if the amount is upto INR 5,000 per day,
3- The notification only talks about the instances mentioned in subsection 4 of Section 9 of CGST act which covers cases where a registered person deals with Unregistered supplier hence this exemption is not available for subsection 3 of section 9 of CGST act.
Further a care must be taken while using the exemption which is not allowed in full in case the amount of such supplies are in excess of INR 5,000 per day.
Exemption related to a purchase from an Unregistered dealer by a Registered dealer is INR 5,000 per day per supplier?, Only CGST is exempt on the same as per the notification 8/2017? if the notification also applies on RCM category of other goods and services?
Suggested response:
As per the notification no.8/2017 issued on 28 June 2017 the below are the point wise responses -
1- The notification covers INR 5,000 as overall limit and will not be available based on supplier wise, hence one has to keep a track on this limit which is exempt from tax only if it is UPTO INR 5,000
Care must be taken about the applicability of the notification which is for goods or services or both.
2- The notification has been issued under CGST act and hence exempt from CGST act if the amount is upto INR 5,000 per day,
3- The notification only talks about the instances mentioned in subsection 4 of Section 9 of CGST act which covers cases where a registered person deals with Unregistered supplier hence this exemption is not available for subsection 3 of section 9 of CGST act.
Further a care must be taken while using the exemption which is not allowed in full in case the amount of such supplies are in excess of INR 5,000 per day.
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