Friday, October 13, 2017

Non applicability of sec 12(2) b of CGST act for certain class of registered persons - Notification 40/2017 dt 13 Oct 2017

Author's notes and comments on notification:

1- As per section 12(2) of CGST act which talks about the LIABILITY TO PAY TAX arise at the time of supply of goods which should be earlier of date of invoice (or when it was required to issue u/s 31 of CGST act) OR payment received, which now amended as below-

- Registered person whose aggregate turnover in PRECEDING FY (or current year FY expected turnover likely to be) is UPTO 1.5 CRORES then only 12(2)a will be applied and YELLOW highlighted has been waived for these class of registered persons,

- Above registered persons should not be under COMPOSITION LEVY scheme u/s 10 of CGST act in order to apply this notification,

2- Since this would attract sec 14 of CGST also which talks about "Change in rate of tax in respect of supplies and services" hence above notification will prevail while dealing in such situations and one has to deal sec 14 provisions accordingly.

reader may refer the link to understand more on sec 14 which was published on this blog earlier-https://iamcanuj.blogspot.in/2017/08/what-is-time-of-supply-when-change-in.html




For reading this notification please refer link - http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-40-cgst-english.pdf

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