TMI BlogClarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the MGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the MGST Act: applicability of notification No. 50/2018-State Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST.X X X X Extracts X X X X X X X X Extracts X X X X ..... t Dec. 2018 Trade Circular (GST) No. 44T of 2018. To, .. .. Subject: Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the MGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the MGST Act: applicability of notification No. 50/2018-State Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST. Sir / Gentlemen / Madam 1. Various representations have been received in the Board seeking clarification on certain issues under the GST laws. On this aspect Board has issued a Circular ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such supplies. 3. A doubt has arisen about taxability of intra-State and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by the Central Government, State Government, Union territory or a local authority to an unregistered person . 4. It was noted that such supply to an unregistered person is also a taxable supply under GST but is not covered under notification No. 36/2017-State Tax (Rate) and notification No. 37/2017- Integrated Tax (Rate) both dated 13.10.2017. 5. In this regard, it is clarified that the respective Government departments (i.e. Central Government, State Government, Union territory or a local authority) shall be liable to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty under the provisions of section 73(11) of the MGST Act is not payable in such cases. It is further clarified that since the tax has been paid late in contravention of the provisions of the MGST Act, a general penalty under section 125 of the MGST Act may be imposed after following the due process of law. 3. In case a debit note is to be issued under section of the MGST Act or a credit note under section 142 (2) (b) of the MGST Act, what will be the tax rate applicable - the rate in the pre-GST regime or the rate applicable under GST? 1. It may be noted that as per the provisions of section 142(2) of the MGST Act, in case of revision of prices of any goods or servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty one per cent. or more participation by way of equity or control is with the Government. 5. What is the correct valuation methodology for ascertainment of GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 1. Section 15(2) of MGST Act specifies that the value of supply shall include any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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