GST Sectoral_Levy
1:  "Should GST be charged on labour charges in an invoice? "

Yes, if the activity is taxable.

2:  Would tax be payable on sale of business assets on which no credit was claimed?

Yes provided the aggregate value of supplies is more than Rs. 20 lakhs (Rs. 10 lakhs in special category States).

3:  "What kind of facilities provided by employer to employee would be liable to GST? For instance, whether club membership provided will be considered as " service"? "

The compensation to employees in the form of money is not a supply. However, fringe benefits are supply of goods or services and are liable to tax if not exempted. These are transactions in furtherance of business and even if supplied without consideration, the same are deemed supply.

4:  "PayPal is USA based company. It provides services to its account holders spread worldwide. Whether services given by PayPal would be covered under Section 13(8) of IGST Act? "

If the place of supply is in India, the registered recipient will have to pay tax under reverse charge and if the recipient is unregistered, PayPal will pay GST in accordance with section 14 of IGST Act.

5:  "Whether 5% GST applicable to the Transport service provider is to be charged on the total freight amount bill? "

It will be on the invoice value of GTA services determined in terms of section 15.

6:  "Does Rental Income less than Rs. 20 Lac per annum attract GST? "

No. That said, where the rental income from a single property is less than Rs. 20 lakhs but the aggregate rental income from various properties exceed rupees twenty lakhs, the requirement for registration and GST payment will be there.

7:  In reference to Section 15 of GST, CTT and STT are statutory levy under Income Tax. Is there any GST tax on another governmental Tax, SEBI Fees and Stamp Duty as per Various State Government rates?

As per Section 15 the value will be inclusive of all taxes except CGST, SGST, UTGST and IGST. So all taxes will be included in the value for the purpose of GST except where benefit of Pure agent as provided in Rule 33 of CGST Rules, 2017 is availed.

8:  "Provisions of Notification no. 7/2017 are applicable under CGST only. Kindly clarify whether provisions of notification no. 7/2017 will be applicable for SGST ACT, IGST ACT and UTGST ACT? "

Separate notifications are issued under SGST Act, IGST Act and UTGST Act.

9:  "Whether GST would be payable in case of demand of excise duty made upon finalization of provisional excise assessment in post GST period? "

Demands arising from finalization of provisional assessments under the Central Excise Act, unless recovered under the said Act, shall be recovered as an arrear of tax under GST Act.

10:  "What option shall be opted while clearing samples from factory to warehouse location: a) No GST should be levied but corresponding ITC should be reversed b) GST should be levied but GST (ITC) paid on samples cleared should be reversed at receiving warehouse location."

Depends upon the location of the factory and warehouse. If both are located in the same State and not registered separately, no GST is to be charged. Once finally supplied to any other recipient, no GST is to be charged but ITC on the same is to be reversed.

11:  "What is the taxable treatment of the services provided by a Service Provider in respect of such services which are covered under circular 25/2012-Mega Exemption Notification for Government, railways and other Departments? Such Services are exempt from Service Tax, hence who will bear the GST tax element of 18%, the Service Provider or the Principal Employer? "

Exemption notification for services have been notified. Refer Not. No. 12/2017- Central Tax (Rate) & Not. No. 9/2017-Integrated Tax (Rate).

12:  "Normally the Service Provider does not issue invoice in Government Jobs. The Sectional /departmental engineers prepare the measurement books and record the details of work done on a subsequent date. Hence how Point of Service will be reckoned since the Service Provider does not raise the Invoice? "

Time of supply of services has been explained in Section 13 of CGST Act. The supplier of services will have to issue a tax invoice within 30 days of supply of service (the measurement is finalized by the departmental engineers or service provider whichever is earlier.
In case of reverse charge , Govt. Dept. will raise invoice accordingly.

13:  In construction work, after raising of the Invoice, physical verification of the same is done by the Engineers of the Client and this work is delayed abnormally: in some instances the period taken goes up to two months, then how the Point of Service will be determined?

Time of supply of services has been explained in Section 13 of CGST Act.The date of issue of Invoice will the time of supply.

14:  "Is it practically feasible that Service Provider submits an Invoice after execution of work and the Principal Employer makes arrangement for payment of the bill after three months whereas as per point of service rule, the Point of Service stands for one month from the date of issue of raise invoice or services whichever is earlier and the Service Provider has to pay Service Tax @ 18% on value of work done although he has not received any payment from the client till date? "

Time of supply of services has been explained in Section 13 of CGST Act. The terms for payment do not decide the taxability of a particular transaction. So even if payment for a particular supply has not been received it will still be liable for GST.

15:  "Clarification is sought for the following:- 1.Intermediary services and services provided by Banking Company to its Account Holders – Intra-state or Inter-state supply? "

Place of supply provisions in sub-section (12) of section 12 of IGST Act may be referred to.

16:  "Cross border services provided by an Indian branch to offshore branch /HO which are not “Intermediary Services” – are they exempted? "

Section 13 of IGST Act, 2017 may be referred. The place of supply is outside India but as the supplier is located in India, it is a case of inter-State supply and subject to IGST. It will be zero rated if the sale proceeds are realized in Convertible foreign exchange.

17:  "Pure Agent – Issuance of a circular similar to CBEC Circular on STT/Stamp duty dated 17th Sept. 2010. "

Detailed Rule provided. Please see Rule 33 of CGST Rules.

18:  Charging of GST in case of travel by a passenger to beyond India's border viz., to Pakistan or Bangladesh?

The place of supply is the place of embarkation for the continuous journey. If a passenger embarks at Amritsar for journey to a place in Pakistan, it is taxable because the place of embarkation is in the taxable territory.

19:  Levy of GST in respect of ticket booked in India if place of boarding is outside India?

The place of supply is outside India but as the supplier is located in India, it is a case of inter-State supply and subject to IGST. It will be zero rated if the sale proceeds are realized in convertible foreign exchange.