Question
A is a retailer & doing business of readymade
cloth on counter sales, Now my query is, 1] Purchase bill of Rs. 25000/- & he is
going to pay Rs.24000/- to his supplier Now what will be the gst effect ? 2]
Rs.1000/-less payment is consider as a income in his p&l a/c.
My second query is 1] Mr.x is doing business of drilling BOREWELL & registered
with GST. Now he is drilling borewell for farmer also who are not registered
with gst & doing only agricultural activity, in that case whether drilling of
borewell activity attracting gst ?
Answer
Query 1
As per section 34 of CGST Act read with Rule 53, Supplier should issue a credit
note to reduce the cost.
The supplier will issue a credit note of Rs 1000 including tax and reduce tax
liability.
Query-2
In GST all exemption on services are specified in Notification 12/2017-CT, and
S.no 54. of notification as follows :-
Notification No. 12/2017- Central Tax (Rate)
|
54 |
Heading 9986 |
Services relating to cultivation of plants
and rearing of all life forms of animals, except the rearing of horses,
for food, fibre, fuel, raw material or other similar products or
agricultural produce by way of' (a) agricultural operations directly related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) supply of farm labour; (c) processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) loading, unloading, packing, storage or warehousing of agricultural produce; (f) agricultural extension services; (g) services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce. (h) services by way of fumigation in a warehouse of agricultural produce |
in Definition of above said notification.
"agricultural extension" means application of scientific research and knowledge
to agricultural practices through farmer education or training;
As your service is not covered under above notification and S.no so your service
is taxable under GST. (Reply dt.17/10/2018)