TMI BlogGST paid under wrong headX X X X Extracts X X X X X X X X Extracts X X X X ..... XYZ paid GST wrongly under IGST instead of paying under CGST + SGST for the period July 17 to September 18. Can they adjust the same while paying current months liability by issuing credit notes or they need to again pay CGST + SGST and then claim refund of IGST wrongly paid? - Reply By KASTURI SETHI - The Reply = Dear Querist, Are you sure about 'Place of supply' ? More details are requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired for correct reply. - Reply By Kaustubh Karandikar - The Reply = XYZ (Punjab) receiving commission for abroad on which GST is paid. As per Section 13(8) of IGST Act the POS in case of intermediary services is the location of the supplier of services. Accordingly, the POS would be Punjab. Further the location of supplier is also Punjab and therefore as per Section 8(2) of IGST Act it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is an intra-State supply and thus CGST + SGST will apply. Correct? If yes, XYZ paid GST wrongly under IGST instead of paying under CGST + SGST for the period July 17 to September 18. Can they adjust the same while paying current months liability by issuing credit notes or they need to again pay CGST + SGST and then claim refund of IGST wrongly paid? - Reply By KASTURI SETHI - The Reply = You ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve received commission from abroad and not for abroad . Am I right ? If it is so, It is inter state service and IGST is applicable. - Reply By Kaustubh Karandikar - The Reply = yes received from abroad. But will it not fall under Section 8(2) of IGST Act and if not under which sub-section of Section 7 will it fall? - Reply By KASTURI SETHI - The Reply = Dear Sir, Your client is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upplying /providing services, namely, intermediary services abroad and getting commission from a foreign service receiver. Service has been consumed outside India. As per Section 13(8) (b) of IGST Act, 2017 , place of supply is location of supplier i.e. within India . So it is inter-State supply. and not intra-State. These, being intermediary services, are NOT covered under Section 7 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IGST Act. - Reply By Kaustubh Karandikar - The Reply = Sir, i appreciate your views. But Section 13 decides the applicability of GST based on 'Place of Supply' and once that is decided, Section 7 and 8 decides whether it is an inter-state or intra-state supply. Therefore, in my view, Section 8(2) will get atteacted unless it is getting hit by the words 'subject to Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 '. Your views please. - Reply By KASTURI SETHI - The Reply = Dear Sir,. Whenever we talk of service, first of all, the first of all question arises is that of determination of classification. Thereafter, the question of determination of place of supply arises. Now you cannot deny that your client has provided intermediary services. And you cannot deny that service has been consumed outs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide India. Now you cannot talk of Section 7 or 8 of IGST . It is inter -State supply and reap the benefits of Inter-State inherent in Section 13 instead of thinking about depositing against wrong type of tax.I wish other learned experts intervene to clear the air. - Reply By Alkesh Jani - The Reply = Dear Sir, In this regards, prima facie, I concur with the views of Sh. Kasturiji Sir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , that as per the query, it can be treated as inter-state service. However, few clarification in the matter is required such as The services provided is with regards to any goods as given in Section 13(3)(a) ? Whether payment is received in foreign currency? Have you raised any Invoice to Foreign Service recipient? Further, Section 13 of IGST Act , clearly states that Pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of supply of service where location of supplier or location of recipient is outside India.. To arrive at any conclusion for any sub-clause above details are required. Moreover, Sh. Kasturiji Sir, has rightly said that once Section 13 is applicable it is not wise to make other Section to come into play. One should decide that the transaction fits to the specific Section, if Yes, than full st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... op, if not the nearest Section which is applicable. Hope this may help the querist. Thanks, With regards, - Reply By Kishan Barai - The Reply = I endorse the questions asked by Alkesh Jani Sir. - Reply By KASTURI SETHI - The Reply = Sh.Kishan Barrai Ji,. Thanks to you as it is also endorsement of my views. - Reply By KASTURI SETHI - The Reply = Sh.Alkesh Jani Ji, Beautifully elabo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated/explained by you. The essence of your elaboration is We are not to look back. as we are already going on right track. - Reply By Kishan Barai - The Reply = Definitely KASTURI SETHI Sir, you are always best , no doubts on it.... - Reply By Alkesh Jani - The Reply = Dear All, I thank all for everything and I take this Opportunity, to wish you and all your family members a happy Diwa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... li Thanks again, With regards - GST paid under wrong head - Query Started By: - Kaustubh Karandikar Dated:- 3-11-2018 Goods and Services Tax - GST - Got 13 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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