EXAMPLE-54
Mr. Amit an architect, provided his
services for a fees of Rs
6
lakh
of which on 12th August, 2017 he received
Rs. 2 lakh as advance and balance on 10th
Nov, 2017. Client did not pay for the GST charged on the bill raised on
28th Nov, 2017 for Rs.
6
lakh + (CGST + SGST @ 18%).
(a)
How many times the liability to pay GST arise and when'
(b)
GST due is not paid by the client, whether service provider is liable for GST.
(c)
Determine the liability of GST at each point of time and the due date of payment
of GST in each case.
|
Time of supply in case of
(a) above |
Relevant event (Section 13) earlier of payment or invoice |
Total amount received |
GST @18% (c) |
Due Date of Return and last date of payment of tax |
|
12th
august 2017 |
Advance receipt of payment |
2,00,000 |
(2,00,000*18/118)= 30,508 |
20th
September |
|
10th
Nov 2017 |
Balance payment/invoice |
4,00,000 |
(4,00,000*18/118)= 61017 |
20th December |
(b) The amount received is deemed to be inclusive of GST.
Rule 35 (Chapter-IV Determination Of
Value Of Supply )
specifies that where value
of supply is inclusive of integrated tax, central tax, State tax, Union
territory tax then tax amount shall be determined in the following manner,
Tax
amount= Value inclusive of taxes X tax rate in % of IGST or as the case may
be CGST, SGST or UTGST
(100+ sum of tax rates, as applicable, in %)