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Applicability of GST, Goods and Services Tax - GST

Issue Id: - 114005
Dated: 1-8-2018
By:- Vineet Kt
Applicability of GST

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Sir,

I am employee of a bank and had availed furniture reimbursement facility from the Bank. Now I have resigned and the bank is charging gst on the wdv of the household items so that the ownership can be transferred in my name. Please clarify if gst is applicable or not. No ITC was claimed as the items were purchased in the pre-gst regime(vat).

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Posts / Replies

Showing Replies 1 to 9 of 9 Records

1 Dated: 1-8-2018
By:- Alkesh Jani

Sir,

Although No ITC was taken, GST is applicable on transaction value.

Thanks


2 Dated: 1-8-2018
By:- Ganeshan Kalyani

GST will be charged / collected from you by the Bank and pay to the government. The tax can be inclusive of the price or exclusive. It depends upon the policy of you organization.


3 Dated: 1-8-2018
By:- Vineet Kt

Sir,

I asked this because isnti it violating the very principle of double taxation which gst was supposed to remove. The tax has alrwaal been paid on the full value in the form of VAT. The Bank is not basically supplying me any new goods. Moreover, since it is a off transaction for the Bank and is not a regular business transaction.


4 Dated: 1-8-2018
By:- Ganeshan Kalyani

They had two option - one claim input tax credit on the asset purchased and second capitalize it and claim depreciation benefit under income tax. Either way there was benefit. Further, the supply in your case is in course of the business hence GST would be applicable and regarding input tax credit , in my view if you bank had taken credit in past then the gst payable in only on the differential value.


5 Dated: 1-8-2018
By:- Vineet Kt

Thanks Sir. Understood now.


6 Dated: 1-8-2018
By:- Ganeshan Kalyani

Welcome Sir.


7 Dated: 1-8-2018
By:- DR.MARIAPPAN GOVINDARAJAN

Nice explanation by Shri Ganeshan


8 Dated: 6-8-2018
By:- Ganeshan Kalyani

Thank you Sir.


9 Dated: 28-8-2018
By:- Ramaswamy S

At the time of purchase of asset, the asset was in the name of the employer and the depreciation was claimed by the employer. The value of the asset was treated as perks in the hands of the employee and IT was charged.

At the time of transfer of asset (pre GST), VAT is charged on the value of the asset transferred. Under GST, instead of VAT, CGST+SGST is charged.

There is no double taxation in either case.

Further, to clarify, whether VAT or GST, there is no question of double taxation as the tax is on the value added (by the assesse), though the full tax is borne by the common man.

VAT/GST is a benefit to the business community as their net tax is reduced whereas for the common man, the price is reduced (which before and after GST, the tax is borne by him). This is an indirect tax.

Regards

S.Ramaswamy


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