GST Acts: CGST Act, SGST Act, IGST Act Long Answer Type Questions
Question 1.
Write short notes on place of supply.
Answer:
The term, “supply” has been inclusively defined in the Act. The meaning and scope of supply under GST can be understood in terms of following six parameters, which can be adopted to characterize a transaction as supply:
- Supply of goods or services. Supply of anything other than goods or services does not attract GST
- Supply should be made for a consideration
- Supply should be made in the course or furtherance of business
- Supply should be made by a taxable person
- Supply should be a taxable supply
- Supply should be made within the taxable territory
While these six parameters describe the concept of supply, there are a few exceptions to the requirement of supply being made for a consideration and in the course or furtherance of business. Any transaction involving supply of goods or services without consideration is not a supply, barring few exceptions, in which a transaction is deemed to be a supply even without consideration, Further, import of services for a consideration, whether or not in the course or furtherance of business is treated as supply.
Question 2.
Why are place of supply provisions different in respect of goods and services?
Answer:
Goods being tangible do not pose any significant problems for determination of their place of consumption. Services being intangible pose problems w.r.t determination of place of supply mainly due to following factors:
(i) The manner of delivery of service could be altered easily. For example telecom service could change from mostly post-paid to mostly pre-paid; billing address could be changed, billers address could be changed, repair or maintenance of software could be changed from onsite to online; banking services were earlier required customer to go to the bank, now the customer could avail service from anywhere
(ii) Service provider, service receiver and the service provided may not be ascertainable or may easily be suppressed as nothing tangible moves and there would hardly be a trail
(iii) For supplying a service, a fixed location of service provider is not mandatory and even the service recipient may receive service while on the move. The location of billing could be changed overnight
(iv) Sometime the same element may flow to more than one location, for example, construction or other services in respect of a railway line, a national highway or a bridge on a river which originate in one state and end in the other state. Similarly a copy right for distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme is broadcasted across the country at the same time. An airline may issue seasonal tickets, containing say 10 leafs which could be used for travel between any two location in the country. The card issued by Delhi metro could be used by a person located in Noida, or Delhi or Faridabad, without the Delhi metro being able to distinguish the location or journeys at the time of receipt of payment
(v) Services are continuously evolving and would thus continue to pose newer challenges. For example 15-20 years back no one could have thought of DTH, online information, online banking, online booking of tickets, internet, mobile telecommunication etc.
Question 3.
Write short notes on supply by a taxable person.
Answer:
A supply to attract GST should be made by a taxable person. Hence, a supply between two non-taxable persons does not constitute supply under GST. A “taxable person” is a person who is registered or liable to be registered under section 22 or section 24. Hence, even an unregistered person who is liable to be registered is a taxable person. Similarly, a person not liable to be registered but has taken voluntary registration and got himself registered is also a taxable person.
It should be noted that GST in India is State-centric. Hence, a person making supplies from different States needs to take separate registration in each State. Further, the person may take more than one registration within a State if the person has multiple business verticals. A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of GST. Hence, a supply between these entities constitutes supply under GST.
Question 4.
Write short notes on input tax.
Answer:
In relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes the following:
- The integrated goods and services tax charged on import of goods.
- The tax payable under the provisions of sub-sections (3) and (4) of section 9.
- The tax payable under the provisions of sub-sections (3) and (4) of section 5 of the Integrated Goods and Services Tax Act.
- The tax payable under the provisions of sub-sections (3) and (4) of section 9 of the respective State Goods and Services Tax Act or
- The tax payable under the provisions of sub-sections (3) and (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy.
Question 5.
Explain briefly the Inputer Service Distributor^and,its functions.
Answer:
Input service distributor and its function:
Input service distributor (ISD): means an office of the supplier of goods and/or services, which receives tax invoices issued towards receipt of input services or such other document as prescribed for the purposes of distributing the credit of CGST, SGST.
Functions:
If the amount of ITC distributed by an ISD is reduced later on, the procedure for reducing the credit will be the same as for the reduction in case of credit note. The Input service distributor must be on the basis of the ISD credit note, issue an ISD- Invoice to the recipient entitled to such credit and include them in the return in FORM GSTR-6 for the month in which such credit note or invoice was issued.
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Question 6.
Write short note on location of the recipient of services.
Answer:
Location of the recipient of services means:
(a) where a supply is received at a place of business for which the registration has be*en obtained, the location of such place of business.
(b) where a supply is received at a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of Such fixed establishment.
(c) where a supply is received at more than one establishment, whether . the place of business or fixed establishment, the location of the establishment most directly concerned with the receipt of the supply.
(d) in absence of such places, the location of the usual place of residence of the recipient.
Question 7.
Write short note on location of the supplier of services.
Answer:
“Location of the supplier of services” means:
(a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business.
(b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such
fixed establishment.
(c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply.
(d) in absence of such places, the location of the usual place of residence of the supplier.