GstTak

INTRODUCTION:- The Input Service Distribution is self explainetary that the distributing the credit on common invoices pertaining to input services only and not goods (inputs or capital goods). Also not applicable for Services which attract GST under RCM. Companies may have their head office at one place and units at other places which may be registered separately. The Head Office would be procuring certain services which would be for common utilization of all units across the country. The bills for such expenses would be raised on the Head Office. But the Head Office itself would not be providing any output supply so as to utilize the credit which gets accumulated on account of such input services. Since the common expenditure is meant for the business of all units, it is but natural that the credit of input services in respect of such common invoices should be apportioned between all the consuming units. ISD mechanism enables such proportionate distribution of credit of input s

(A) GST is applicable only if there is Supply, so let us understand the Scope of Supply. (I) Scope of Supply (Sec. 7):- (1) There is inclusive definition of Supply. i.e Supply includes:- (a) All forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) Import of services for a consideration whether or not in the course or furtherance of business; (c) The activities specified in Schedule I, made or agreed to be made without a consideration; and (d) The activities to be treated as supply of goods or supply of services as referred to in Schedule II. (B) Now understand the Activities Specify in Schedule I (ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION) (1) Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. (2) Supply of good

Explanation of Notification No. 01/2020 Dt. 21.02.2020 of Central Tax (Rate). Such Notification is Deal with GST Rate on Supply of Lottery. Definition:- Goods:- As per the Section 2(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. A) What is Lottery Tickets:- ‘Lottery tickets’, is actionable claim and is classified as ‘Goods’, under GST. However as per Schedule III Actionable Claim is neither supply of Goods nor Supply of Service, but Lottery Tickets is exception. Hence, the sale of lottery tickets would be considered to be the supply of taxable goods and will attract GST on Lottery sales. B) What is Actionable Claim:- As per Section 3 of the Transfer of Property Act, 1882. Actionable Claim is a claim to any debt, other than a debt secured by mortgage of immov