ॐ असतो मा सद्गमय
GSTIN of the recipient must be provided to airline or hotel who will issue their invoice and file their GSTR-1 citing this GSTIN and credit will flow to the recipient, subject to section 17. Accordingly, travel agents who issue a consolidated invoice are causing loss of credit of taxes paid to airline or hotel and merely passing on credit of their taxes (5% as tour operator and 0.9%/1.8% on ticketing).
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 38)
Yes, as there is no exclusion from valuation as provided for special cases in Rule 32.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 37)
Any reduction in ITC must arise under section 17 and this 1/3rd reduction in value that is explained in note 2 below the Notification 8/2017-Integrated Tax (Rate) dated June 28, 2017, it is not stated to be an ‘exempt supply’ for the purposes of section 17.
As such, though it appears logical to reverse ITC, there is no machinery provision to require this reversal of ITC.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 36)
Health care is exempt to the extent it is not cosmetic in nature. Cosmetic treatment even if conducted in a hospital by a medical doctor would be taxable. Trails and opinions given by medical professionals on specimen or facts provided are taxable as the supply of services by the medical professional is not in respect of a patient or patient’s report for diagnosis or treatment.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 35)
Entry 13 in the notification exempts ‘educational institution’ from tax on services provided ‘to student, faculty or staff’. As such any income flowing to the institution must bear a direct nexus to the relationship of ‘student, faculty or staff’ whatever may be the service that is provided. But, if the income is indicated to be otherwise than under this relationship, even though between same persons, exemption will abate. For example, payment towards building fund by a student admittedly is not in pursuance of that relationship because it is not towards tuition or any associated service.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 34)
In case of associated enterprises located within India, the time of supply in terms of
Section 13(3) shall be the earliest of the following:
(a) Date of payment as per books of accounts of the recipient; or
(b) Date on which payment is debited in the bank account of the recipient; or
(c) Sixty days from the date of issuing invoice or any other document, by whatever
name called, in lieu thereof by the supplier; or
If it is not possible to determine the time of supply under the aforesaid clauses, the time
of supply shall be the date of entry in the books of account of the recipient of supply.
Thus, the same provisions as applicable to a supplier who is not associated enterprise
will apply for services provided by associated enterprises located in India.
Where associated enterprises is located outside India, the time of supply shall be the
earliest of the following dates:
(a) Date of entry in the books of accounts of the recipient; or
(b) Date of payment.
| Particulars | Non-associated enterprises | Associated Enterprises |
| Date on which payment is entered in books of accounts | August 14, 2017 | August 14, 2017 |
| Date on which payment is debited to bank account | August 17, 2017 | August 17, 2017 |
| Date of issuance of invoice | August 10, 2017 | August 10, 2017 |
| Sixty days from the date of issuing invoice | October 08, 2017 | October 08, 2017 |
| Date of entry in the books of accounts of the recipient | August 10, 2017 | August 10, 2017 |
| Time of supply | August 14, 2017 | August 10, 2017 |
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF SERVICES: FAQ NO. 20)
Yes, lease is liable to tax at the same rate at which the goods are liable. Once the goods are exempt, then by the same provision prescribing such a rate of tax for lease would also stand exempted
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 33)
Yes, if the Invoice is not issued within 30 days of supply of service. Refer answer above to Q. 14.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME FOR SUPPLY OF SERVICES: FAQ NO. 19)
In terms of Section 13(3) of the CGST Act, 2017, the time of supply of services for remittance of tax under reverse charge mechanism shall be the earliest of the following:
(a) Date of payment recorded in the books of accounts of the recipient;
(b) Date of debit in bank account of the recipient;
(c) 60 days from the date of issue of invoice or any other document in lieu thereof by the supplier; or If it is not possible to determine the time of supply under the aforesaid clauses, the time of supply shall be the date of entry in the books of account of the recipient of supply.
In case of associated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier.
(ICAI FAQ PUBLICATIONS 06-09-2017 TIME OF SUPPLY OF SERVICES: FAQ NO. 18)
Yes, but only land and building as per entry 6 in schedule III. Immovable property comprises of various other forms other than just land and buildings and they may not be exempt from GST. They could be taxable as ‘services’.
(ICAI FAQ PUBLICATION 06-09-2017 : Exemptions on Supply of Services – FAQ NO. 32)