Question

1) We are getting delay interest payment on Yarn sales after Due dates in two types as below.
a) First Type Ex. If I receive Rs. 100/- as delay interest & GST as per bill is 18/- totalling Rs 118/- and party had paid the Interest after deducting TDS (i.e. 100+18=118-10=108/-paid).
b) Second Type Ex. Party had paid the Interest Amount without GST (i.e. only 100/- less tds 10 = 90/-). In this case what to do?

2) On 31-03-18 we have ready Job Work Stock and book job work Stock in Financial report as receivable income of 31-03-18 and billed the same stock in April month. we have to Pay GST on It in March itself or it is Ok if we billed in April and pay GST.
 

Answer

Point wise reply to your query is as follows:

1. In case of second type transaction Interest paid without GST will be treated as inclusive of GST and tax amount is calculated as per the provision specified in Rule 35 of CGST Rules i.e.

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 %)

Thus tax amount in your case will be (100 * 18) / 118.

2. In GST point of taxation is determined as per the provisions of Time of supply. As job work is a supply of service therefore Time of supply is to be determined as per section 13 of CGST Act which is as follows:
The time of supply of services shall be the earliest of the following dates, namely:'

(a) the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or

(b) the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or

(c) the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply
Thus if in your case events related to issue of invoice and receipt of payment occurs in April then as per the above provision, TOS in this case is in April. Whereas you have to reconcile books of account and GST returns in the reconciliation statement because in accounting we follow Accounting Principles. (Reply dt.07/08/2018)