Category: Provisional Assessment

Posted on

How is the assessment made if the taxable person is not able to determine the value of goods and/or services or determine the rate of tax

Where the taxable person is unable to determine the value of goods or services or both or determine the rate of tax applicable thereto, he may request the proper officer in writing giving reasons for payment of tax on a provisional basis and the proper officer shall pass an order, within a period not later than ninety days from the date of receipt of such request, allowing payment of tax on provisional basis at such rate or on such value as may be specified by him.

(ICAI FAQ PUBLICATIONS 06-09-2017 PROVISIONAL ASSESSMENT: FAQ NO. 1)

Posted on

Banks pay provisional VAT currently at the time of delivery of gold on the basis of ongoing market prices. When customer fixes the price of metal, Banks pay actual VAT on the maturity date of the Gold Loan. Banks must be allowed to set-off the excess provisional GST paid to the government against future fixation of prices. In case of excesspayment, the same should be refunded on Pan – India basis and not on the basis of States.

  1.  Banks may claim refund in accordance with the provisions of section 54 of the CGST Act, 2017.
  2. Interest is payable in such cases as provided in section 56 of the CGST Act, 2017.
  3. In this connection, section 60(5) of the CGST Act, 2017 may be referred to.

( FAQ 6: GEMS AND JEWELLERY)

Posted on

Banks lend gold in physical form for a period not exceeding 6 months. Banks receive interest on the gold ounces disbursed and the same is converted into Rupees after calculation of interest on the ounces and the USD/INR conversion. Will the same methodology continue in case of GST as well wherein Banks shall pay a provisional GST (i.e. IGST/SGST/CGST) on ongoing market prices and pay the final GST as and when the prices are fixed

Yes, Banks may avail of the benefit of provisional assessment provided under section 60 of the CGST Act, 2017.

( FAQ 5: GEMS AND JEWELLERY)