TMI BlogSupply Includes Without Consideration -Section 7(1)(c) Schedule IX X X X Extracts X X X X X X X X Extracts X X X X ..... with section 18(6) of the CGST Act, read with rule 40 and read with section 15 for determining the transaction value of capital goods. Transfer of a business assets without consideration will attract GST only in respect of those goods where ITC has been availed. This clause also read with clause 4(c) of schedule II, which state that transfer of business as going concern is not a supply, thus transfer of entire business as a going concern cannot be subject to GST. CASE LAW M/S. AIRPORTS AUTHORITY OF INDIA ( 2023 (4) TMI 959 - AUTHORITY FOR ADVANCE RULING, RAJASTHAN ) whether Supply or not - transfer of business or business assets In this case activity held is transfer of business as a going concern without consideration is supply of service which is exempt supply in light of Sl.No. 2 of Notification 12/2017 of CGST Act 2017 Further, as per section 17 read with rule 42 of CGST Rules, 2017, in case any registered person is having any exempted supplies, then ITC pertaining to such exempted supplies shall be reversed proportionately. (b) Supply of goods or services or both between related persons or distinct persons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. The gifts given by employers to employees are liable to GST if the value of the gift exceeds Rs. 50,000. It may noted that when goods are disposed of by way of gift, however, reversal of input credit will required as per u/s 17(5) . The employer is required to track the supply without consideration for each employee since the limit is for an employee during the financial year. However, if any amount recovered from the employee, it will be subject to GST and value will be determined as per section 15 of CGST Act. Example , a computer of INR 1,00,000/- is given to the employee for INR 20,000/-, then value of supply shall be INR 1,00,000/- (i.e. INR 80,000/- without consideration and INR 20,000/- as money consideration) determined as per valuation rules described the CGST Act. Meaning of Gift is transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called doner to another called donee and accepted by or on behalf of the done section 122 of transfer of property Act, 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise, are not eligible for the threshold limit of INR 40 Lakh/10 Lakh/ 20 Lakh for registration. There is misunderstanding that all commission agents required mandatory registration under GST irrespective of his commission income(i.e even if income from commission is below 20/10 lakhs per annum). It is Clarified in the . Circular No. 57/31/2018-GST Dated 04 September 2018 . Now it has been clarified that such registration is required only by C F agents who stock and sale goods on behalf of principal. In case registration is not required by ordinarily commission agents who do not deal in goods or services themselves, if their annual turnover is less than 20/10 lakhs. In case Commission agent of agricultural produce, the commission agent is not a taxable person and agriculturist is also not a taxable person.. hence, the commission agent does not require registration under GST. However, if he is liable to pay GST under reverse charge, he will be liable to be registered u/s 24(iii) of CGST Act. CASE LAW IN RE: M/S. BHAKTAWAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overed under para 3, Schedule I, Example :- A C F agent or commission agent take possession of goods on behalf of principal and issue of invoice in his name . Such case , the C F commission agent is a agent of principal for the supply of goods in term para 3 of schedule 1. The disclosure or non-disclosure of the name of principal is immaterial in such situation. Invoice issued in the name of principal then agent shall not be covered under para 3, Schedule I. Example:- Mr. A sells agricultural produce by utilizing the services of Mr B who is a commission agent as per the Agricultural Produce Marketing Committee Act (APMC Act) of the State. Mr B identifies the buyers and sells the agricultural produce on behalf of Mr. A for which he charges a commission from Mr. A. As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a commission or percentage upon the amount involved in such transaction. In cases where the invoice is issued by Mr. B to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
