'CGST, SGST payable if supplier and place of supply are in same state'

I am a registered dealer of motor parts in the state of Bihar. A dealer from Kolkata had purchased motor parts and himself taken delivery of the goods from my shop. So, the place of delivery is Bihar, but in the invoice we had written the party’s address in West Bengal. So, what should I charge — IGST or CGST / SGST? Kindly mention the Sections.

Your supply gets completed at the time of delivery to the recipient. There is no movement of goods at that stage. As per Section 10 (c) of the IGST Act, 2017, “where the supply does not involve movement of goods, whether by the supplier or the recipient, the place of supply shall be the location of such goods at the time of the delivery to the recipient.” As per Section 8 (1) of the same Act, “subject to the provisions of section 10, supply of goods where the location of the supplier and the place of supply of goods are in the same State or same Union territory shall be treated as intra-State supply”. Therefore, your place of supply is Bihar and as an intra-state supply it attracts CGST and SGST. To obviate confusion, you can mention the place of delivery as Bihar in the invoice. 

We are an education trust, claiming exemption under Section 12A of Income Tax Act, 1961. Our gross turnover of taxable and exempt services is more than Rs 20 lakh but less than Rs 1 crore. Can we avail of the composition scheme?

As per Section 10 (2) of the CGST Act, 2017, composition scheme is not available for service providers, except for supply of food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption).  

Can a registered person who has paid GST on reverse charge basis for services supplied by unregistered dealers take input tax credit of the same?

Yes, if the service is used or intended to be used by the registered person in the course or furtherance of business and other conditions for taking input tax credit are satisfied.   

  

You had mentioned (SME Chatroom, October 10, 2017) that countervailing duty leviable under Section 9 of the Customs Tariff Act, 1975 is not exempted even when goods are imported under advance authorisation. If we pay that duty, can we claim drawback?

Yes. But, that may not be necessary for imports made on or after 13, October 2017, because S. No. 2 of notification no. 69/2017-Cus of that date amends the basic notification 18/2015-Cus dated April 1, 2015, exempting the said countervailing duty on goods imported under advance authorisation.

Can the notification 69/2017-Cus dated October 13, 2017 apply to advance authorisations or EPCG authorisations issued before that date?

The notification applies to all imports made on or after October 13, 2017 under advance or EPCG authorisations, regardless of whether they are issued before or after that date.  
 

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