NAME- TINA .S.

TULSANI
ROLL NUMBER-
HSBC0975
FY BCOM
HR COLLEGE.

GST PROJECT
FOR
ASSESSMENT
Q1) Why have some goods/services been kept outside the
ambit of GST and what could be the repercussions?
ANSWER:-
1. RELEVANT SECTION
The relevant section for exemptions under GST law varies
depending on the jurisdiction. For example, in India,
exemptions and exclusions are detailed in the Central Goods
and Services Tax (CGST) Act, 2017, and corresponding state GST
laws. Specific sections related to exemptions can be found in
Schedule III of the CGST Act, which lists exempted goods and
services.
2.CIRCULAR NUMBER
Regarding the circular number, it would depend on the specific
jurisdiction and the issuing authority. In India, for example, the
Central Board of Indirect Taxes and Customs (CBIC) issues
circulars related to GST. You would need to refer to the latest
circulars issued by the CBIC or the relevant tax authority in your
jurisdiction for specific information on GST exemptions and
exclusions
3.ADVANCE RULING
Repercussions of keeping certain goods and services outside
the GST ambit include:
a)Tax Cascading: Exclusion of certain goods and services may
lead to tax cascading, where taxes are levied on top of taxes at
different stages of production and distribution, increasing the
final cost to consumers.
b)Complexity and Compliance Issues: Exemptions can introduce
complexity into the tax system, making compliance difficult for
businesses and tax administration. It may also create loopholes
for tax evasion.
c)Market Distortions: Exclusions can create distortions in the
market by favoring certain sectors over others, leading to
resource misallocation and inefficiencies.
d)Revenue Loss: Excluding goods and services from the GST
base can result in revenue loss for the government, affecting its
ability to fund public services and infrastructure development.
4.CONCLUSION
In conclusion, while there may be valid reasons for excluding
certain goods and services from the GST ambit, such exclusions
can have significant repercussions on tax efficiency, market
dynamics, and government revenue. Therefore, policymakers
need to carefully consider the trade-offs involved and
implement measures to mitigate any adverse effects, such as
introducing alternative tax mechanisms or reviewing the scope
of GST exemptions periodically to ensure they align with
broader economic objectives.

Q2) Tax on corporate guarantee be levied only one time

or it should be yearly basis?
ANSWER:-
1. RELEVANT SECTION
The relevant section of tax laws related to the taxation of
corporate guarantees would vary depending on the
jurisdiction. For example, in India, the Income Tax Act, 1961,
may contain provisions relevant to the taxation of income
earned from corporate guarantees. Similarly, other tax laws
or regulations in different jurisdictions may contain
provisions addressing the taxation of corporate guarantees.
2. CIRCULAR NUMBER
As for the circular number related to this case, it would
depend on the specific jurisdiction and the issuing authority.
In India, for example, the Central Board of Indirect Taxes and
Customs (CBIC) issues circulars related to GST. However,
corporate guarantees are typically not within the ambit of
GST. Circulars or guidance related to income tax or other
relevant taxes may be issued by the income tax department
or other relevant authorities.
3. ADVANCE RULING
There may not be a specific advance ruling directly
addressing whether tax on corporate guarantees should be
levied only one time or on a yearly basis. Advance rulings are
typically sought by taxpayers to obtain clarity on tax matters
in specific situations, based on the facts presented and the
applicable tax laws.The taxation of corporate guarantees
varies depending on the jurisdiction and the specific tax laws
in place. Corporate guarantees themselves are not typically
subject to direct taxation. However, there may be tax
implications for the parties involved, such as the guarantor
or the beneficiary of the guarantee, depending on the nature
of the transaction and the applicable tax laws.In some cases,
taxes on corporate guarantees may be one-time taxes, such
as stamp duty or transaction taxes, levied at the time the
guarantee is issued. Alternatively, there may be ongoing tax
obligations, such as income taxes or withholding taxes, that
are assessed periodically (e.g., annually) based on the
income or fees generated from the guarantee arrangement.If
a taxpayer is uncertain about the tax implications of
corporate guarantees in their specific situation, they may
consider seeking an advance ruling from the relevant tax
authority. The Authority for Advance Ruling (AAR) or a
similar body in the jurisdiction can provide a binding decision
on the tax treatment of corporate guarantees based on the
specific facts presented by the taxpayer and the provisions of
the tax laws.To obtain relevant advance rulings related to
corporate guarantees, taxpayers should consult the rulings
database or website of the relevant tax authority in their
jurisdiction. Additionally, consulting with tax professionals or
legal advisors familiar with tax laws and procedures can
provide guidance on seeking advance rulings and navigating
tax implications related to corporate guarantees.
4.CONCLUSION
The taxation of corporate guarantees varies depending on
the jurisdiction and the specific tax laws in place. Corporate
guarantees themselves are not typically subject to direct
taxation, but there may be tax implications for the parties
involved, such as the guarantor or the beneficiary of the
guarantee.Ultimately, the conclusion related to the taxation
of corporate guarantees will depend on the specific facts and
circumstances of each case, as well as the interpretation and
application of the applicable tax laws by the tax authorities.

Q3) Whether audit fees and legal fees paid by HO

requires ISD?
ANSWER:-
1. RELEVANT SECTION
2. Regarding whether audit fees and legal fees paid by
the Head Office require ISD, it would depend on
whether these services are availed exclusively for the
Head Office or for the entire organization, including its
branches or units. If these services are utilized solely
by the Head Office, then the input tax credit (ITC) can
be claimed by the Head Office itself, without the need
for ISD.However, if these services are utilized by the
entire organization, including its branches or units,
then the Head Office can avail the input tax credit
(ITC) and distribute it to its branches or units as an
Input Service Distributor (ISD) under Section 20 of the
CGST Act, 2017.
2.CIRCULAR NUMBER
There isn't a specific circular that directly addresses the
question of whether audit fees and legal fees paid by the
HO require ISD. However, Circular No.
80/54/2018-GST, issued by the Central Board of Indirect
Taxes and Customs (CBIC), provides guidance on various
aspects of ISD under GST.
3.ADVANCE RULING
There haven't been specific advance rulings issued by the
Authority for Advance Ruling (AAR) or the Appellate
Authority for Advance Ruling (AAAR) directly addressing
this specific scenario.However, taxpayers can seek
advance rulings from the AAR to obtain clarity on the GST
implications of transactions, including the treatment of
audit fees and legal fees incurred by the HO. The AAR
provides binding rulings on GST matters based on the
facts presented by the taxpayer and the provisions of the
GST law.
4.CONCLUSION
In conclusion, whether audit fees and legal fees paid by
the Head Office (HO) require Input Service Distribution
(ISD) under Goods and Services Tax (GST) laws depends on
various factors, including the nature of the services
provided and their utilization within the organization.
There may not be a definitive conclusion to this case
without considering specific details and circumstances.

Q4) In hotel room rent is for Rs 4,000/- which

includes the cost of the breakfast of Rs.300/-
What will be the rate of GST on it?
ANSWER:-
1.RELEVANT SECTION
The relevant section of the Central Goods and Services Tax
(CGST) Act, 2017, related to the GST rate applicable to
 hotel accommodation is Section 9.However, the specific
GST rate applicable to hotel accommodation may be
detailed in the GST rate schedule or notifications issued by
the government.
2.CIRCULAR NUMBER
Regarding the circular number related to this case, it would
depend on the specific jurisdiction and the issuing authority. In
India, for example, the Central Board of Indirect Taxes and
Customs (CBIC) issues circulars related to GST. You would need to
refer to the latest circulars issued by the CBIC or the relevant tax
authority in your jurisdiction for specific information on GST rates
and provisions related to hotel accommodation and food services.

3.ADVANCE RULING
hotel accommodation is taxed under GST at different rates
depending on the room tariff. Generally, hotel rooms with a
tariff below Rs. 7,500 per day are taxed at a lower rate, while
rooms with a tariff of Rs.7,500 and above per day are taxed
at a higher rate. Additionally, food services, including
breakfast provided by the hotel, may be taxed separately at
applicable GST rates.
In this case, the total room rent is Rs. 4,000, which includes
the cost of breakfast amounting to Rs. 300. To determine the
applicable GST rate on the room rent, we need to separate
the room tariff from the cost of breakfast.
Subtracting the cost of breakfast from the total room rent,
we get:
Room rent (excluding breakfast) = Total
room rent - Cost of breakfastRoom rent (excluding breakfast)
= Total room rent - Cost of breakfast
= Rs. 4,000 - Rs. 300
= Rs. 3,700
 Now, we need to determine the applicable GST rate for hotel
accommodation based on the room tariff of Rs. 3,700. Once
we have the GST rate, we can calculate the GST amount on
the room rent.As for the advance ruling related to this case,
there may not be a specific advance ruling addressing this
exact scenario. Advance rulings are typically sought by
taxpayers to obtain clarity on GST matters in specific
situations. If a taxpayer is uncertain about the GST treatment
of hotel room rent that includes the cost of breakfast, they
may consider applying for an advance ruling from the
Authority for Advance Ruling (AAR) to obtain a definitive
decision based on the specific facts and circumstances of
their case.
4. CONCLUSION
As for the conclusion related to this case, it would depend on
the specific GST rate applicable to hotel accommodation
with a room tariff of Rs. 3,700 in the relevant jurisdiction.
The conclusion would typically involve calculating the GST
amount based on the applicable rate and adding it to the
total room rent to determine the final amount payable by
the customer.

Q5) In recent amnesty for revocation of cancellation of

registration from 01/4/2020 the tax payer filed return
from 01/4/2020 within a week from the date of
revocation of cancellation of registration on
05/12/2023. Whether recipient can claim ITC on
invoices for the period from 01/4/2020 to 4/12/2023?
ANSWER:-
1. RELEVANT SECTION
In the scenario described, where a taxpayer files returns
from 01/04/2020 within a week from the date of
revocation of cancellation of registration on 05/12/2023,
the recipient may be eligible to claim Input Tax Credit (ITC)
on invoices for the period from 01/04/2020 to
04/12/2023, subject to the provisions of the relevant tax
laws.The relevant section in the context of Goods and
Services Tax (GST) in India is Section 16 of the Central
Goods and Services Tax (CGST) Act, 2017. Section 16
outlines the conditions for claiming input tax credit,
including the requirement that the recipient possesses a
valid tax invoice or other prescribed documents.Under
Section 16(4) of the CGST Act, a recipient can claim input
tax credit pertaining to invoices that are not older than
the due date of furnishing the return under Section 39 for
the month of September following the end of the financial
year to which such invoice pertains or furnishing of the
relevant annual return, whichever is earlier.
2.CIRCULAR NUMBER
As of my last update, there isn’t a specific circular related
to the scenario described regarding the recent amnesty
for the revocation of cancellation of registration and the
eligibility of recipients to claim Input Tax Credit (ITC) on
invoices for the period from 01/04/2020 to
04/12/2023.While there may not be a specific circular
addressing this scenario, taxpayers and recipients can rely
on the provisions of the GST law, including Section 16 of
the CGST Act, and seek guidance from tax professionals or
legal advisors for specific situations and compliance
requirements.
3.ADVANCE RULING
 In the scenario provided, where a taxpayer filed returns
from 01/04/2020 within a week from the date of
revocation of cancellation of registration on 05/12/2023,
the eligibility of recipients to claim ITC on invoices for the
period from 01/04/2020 to 04/12/2023 would generally
be determined based on the provisions of the relevant tax
laws, particularly Section 16 of the Central Goods and
Services Tax (CGST) Act, 2017, which outlines the
conditions for claiming input tax credit.Under Section
16(4) of the CGST Act, a recipient can claim input tax
credit pertaining to invoices that are not older than the
due date of furnishing the return under Section 39 for the
month of September following the end of the financial
year to which such invoice pertains or furnishing of the
relevant annual return, whichever is earlier.While there
may not be a specific advance ruling addressing this exact
scenario, taxpayers and recipients can rely on the
provisions of the GST law and seek guidance from tax
professionals or legal advisors for specific situations and
compliance requirements.

4. CONCLUSION
In the scenario provided, since the taxpayer filed returns
from 01/04/2020 within a week from the date of revocation
of cancellation of registration on 05/12/2023, the recipient
may be eligible to claim ITC on invoices for the period from
01/04/2020 to 04/12/2023, provided that the invoices are
within the time limit specified in Section 16(4) of the CGST
Act.Therefore, based on the provisions of the CGST Act, the
recipient can likely claim ITC on invoices for the specified
period, subject to compliance with other provisions of the
law.
Q6.Whether the tax payer can claim ITC on the inward
supply reported by his supplier under B to C?
ANSWER:-
1.RELEVANT SECTION
Under the Goods and Services Tax (GST) regime in India, a
taxpayer generally cannot claim Input Tax Credit (ITC) on
inward supplies reported by their supplier under Business to
Consumer (B to C) transactions. This principle is outlined in
Section 17(5) of the Central Goods and Services Tax (CGST)
Act, 2017.Section 17(5) of the CGST Act states that ITC is not
available for goods or services received by a taxable person
for supplies made to a person who is not registered under
the GST law, except in specific circumstances as may be
prescribed.Therefore, the relevant section applicable to this
case would be Section 17(5) of the CGST Act, which restricts
the claim of ITC on inward supplies reported by the supplier
under B to C transactions. This provision aims to prevent
double taxation and ensure that ITC is only claimed on
inputs, input services, and capital goods used or intended to
be used in the course or furtherance of business.

2. CIRCULAR NUMBER
There isn’t a specific circular number directly addressing
the eligibility of taxpayers to claim Input Tax Credit (ITC)
on inward supplies reported by their suppliers under
Business to Consumer (B to C) transactions.
3. ADVANCE RULING
The eligibility of taxpayers to claim ITC on such inward
supplies is primarily governed by the provisions of the
Central Goods and Services Tax (CGST) Act, 2017, and the
 related rules and notifications issued by the tax
authorities.In the absence of a specific advance ruling on
this matter, the eligibility of taxpayers to claim ITC on
inward supplies reported by their suppliers under B to C
transactions would generally be determined based on the
provisions of the Central Goods and Services Tax (CGST)
Act, 2017, and related rules and notifications issued by
the tax authorities.
4. CONCLUSION
In general, a taxpayer cannot claim Input Tax Credit (ITC) on inward
supplies reported by their supplier under Business to Consumer (B to
C) transactions. Under the Goods and Services Tax (GST) regime in
India, ITC is available only for inputs, input services, and capital goods
used or intended to be used in the course or furtherance of business.
The relevant provision governing the claim of ITC in this context is
Section 17(5) of the Central Goods and Services Tax (CGST) Act, 2017,
which restricts the availability of ITC for goods or services received By
a taxable person for supplies made to a person who is not registered
under the GST law, except in specific circumstances as may be
prescribed.

Q7) The tax payer is engaged in the business of ocean freight

forwarding. He charges for freight at Rs. 10,000/- and for
local transport Rs 2,500/- What will be liability under GST on
above?
ANSWER:-
1. RELEVANT SECTION
The relevant section in this case would be Section 9 of the Central
Goods and Services Tax (CGST) Act, 2017, which deals with the
levy and collection of GST on the supply of goods or services.
Additionally, notifications issued by the government specifying
GST rates for different services would also be relevant.

2. CIRCULAR NUMBER
there isn’t a specific circular number directly related to the
determination of GST liability for ocean freight forwarding services
and local transport charges. However, the liability under GST for
such services would generally be determined based on the
provisions of the Central Goods and Services Tax (CGST) Act, 2017,
and relevant notifications issued by the government specifying
GST rates for different services.

3. ADVANCE RULING
In the absence of a specific advance ruling on this matter, the
liability under GST for ocean freight forwarding services and local
transport charges would generally be determined based on the
provisions of the Central Goods and Services Tax (CGST) Act, 2017,
and relevant notifications issued by the government specifying
GST rates for different services.For ocean freight forwarding
services, the liability under GST may vary depending on factors
such as the nature of the transaction (e.g., export or domestic),
the place of supply (e.g., intra-state or inter-state), and any
exemptions or notifications applicable to such services.Similarly,
for local transport charges, the liability under GST would depend
on whether the services qualify as exempt or taxable under the
GST law and the applicable GST rates for transportation services.

4. CONCLUSION
Without specific details regarding the nature of the transaction,
such as whether it involves export or domestic transportation, and
the place of supply, it's challenging to provide a definitive
conclusion regarding the Goods and Services Tax (GST) liability for
the ocean freight forwarding services and local transport charges.
However, in general:A}For ocean freight forwarding services:If the
services are related to export transportation, they may be eligible
for zero-rated GST under certain conditions If the services are for
domestic transportation, they may be subject to GST at the
applicable rate based on the place of supply and nature of the
transaction.B} For local transport charges: - The liability under GST
would depend on whether the services qualify as exempt or
taxable under the GST law and the applicable GST rates for
transportation services.To accurately determine the GST liability in
this case, the taxpayer should consider factors such as the nature
of the transaction, the place of supply, and any exemptions or
notifications applicable to the services provided. It's advisable for
the taxpayer to review the relevant provisions of the Central
Goods and Services Tax (CGST) Act, 2017, and consult with tax
professionals or legal advisors for accurate determination of GST
liability based on the specific circumstances of their business
operations.

Q8)A Tax payer has received notice for late filing fees
for CMP 08 ? IS CMP a return under GST?
ANSWER:-
1.RELEVANT SECTION
The relevant section in this case is Section 39 of the Central Goods
and Services Tax (CGST) Act, 2017, which mandates the filing of
returns by registered taxpayers. Composition dealers are required
to comply with the provisions of Section 39 and file their returns,
including CMP-08, within the specified time frame.Late filing of
CMP-08 may attract penalties and late fees as prescribed under
 the GST law. Therefore, it’s essential for taxpayers to ensure timely
compliance with the filing requirements to avoid such penalties
and remain compliant with GST regulations.

2. CIRCULAR NUMBER
Yes, CMP-08 is indeed a return under the Goods and Services Tax
(GST) regime in India.As per the GST law, composition dealers are
required to file Form CMP-08, which is a quarterly statement for
payment of self-assessed tax. It includes details of outward
supplies, inward supplies attracting reverse charge, tax payable,
and tax paid.

3. ADVANCE RULING
While there may not be a specific advance ruling applicable to this
case, taxpayers should adhere to the provisions of the GST law and
fulfill their filing obligations, including the timely filing of CMP-08
returns. Late filing of CMP-08 may attract penalties and late fees as
prescribed under the GST law.

4. CONCLUSION
As per the GST law, composition dealers are required to file Form
CMP-08, which is a quarterly statement for the payment of self-
assessed tax. It includes details of outward supplies, inward
supplies attracting reverse charge, tax payable, and tax paid.

Q9) Export of goods is in CIF terms (with payment of

IGST) As per the GST Act, IGST should be charged on
Transaction value (including freight and insurance) But in
shipping bill, IGST is charged on FOB value. To get a
refund, it must match data between ICEGATE and gstr1/3b.
What taxable amount should be shown in gstr-1 (including
Insurance and freight or not). How to deal with the
situation?
ANSWER:-
1. RELEVANT SECTION
Section 15 of the Central Goods and Services Tax (CGST) Act,
2017, deals with the determination of value of taxable supply
and includes provisions for determining the transaction value
for goods and services, including freight and insurance.
2. CIRCULAR NUMBER
Circular No. 46/2017-Customs dated 24th November 2017,
issued by the Central Board of Indirect Taxes and Customs
(CBIC), provides guidance on the procedure for exports under
the GST regime. While this circular primarily focuses on
customs procedures, it also discusses the reconciliation process
between the customs system (ICEGATE) and the GST system for
IGST refunds.Regarding the taxable amount to be shown in
GSTR-1, it’s advisable to report the transaction value, which
includes the value of goods, freight, insurance, and any other
charges incurred up to the place of export. This aligns with the
provisions of Section 15 of the Central Goods and Services Tax
(CGST) Act, 2017, which determines the value of taxable supply
and includes provisions for determining the transaction value
for goods and services, including freight and insurance.
3. ADVANCE RULING
In this case, the taxpayer should consider the relevant
provisions of the GST Act, particularly Section 15, which deals
with the determination of the value of taxable supply. As per
Section 15, the transaction value for exports should include not
only the value of the goods but also any freight, insurance, and
other charges incurred up to the place of export.To ensure
consistency between the data reported in ICEGATE and the GST
returns (GSTR-1/3B) for IGST refund purposes, it’s advisable for
the taxpayer to report the taxable amount in GSTR-1 based on
the transaction value, which includes the value of goods,
freight, and insurance.However, without a specific advance
ruling addressing this exact scenario, it’s essential for the
taxpayer to exercise caution and seek guidance from tax
professionals or legal advisors to ensure compliance with GST
regulations and to effectively deal with the situation.
4.CONCLUSION
In conclusion, while discrepancies between the taxable amount
in the shipping bill and GSTR-1 may pose challenges for
obtaining IGST refunds, taxpayers can address the situation by
reporting the taxable amount in GSTR-1 based on the
transaction value and maintaining accurate documentation to
support the inclusion of freight and insurance. Effective
communication and coordination with relevant authorities are
essential to ensure compliance with GST regulations and
resolve any issues that may arise.

Q10)Remuneration to partner from partnership firm is

attracted GST in the hands of partner?
ANSWER:-
1. RELEVANT SECTION
This exemption is provided under Schedule III of the Central
Goods and Services Tax (CGST) Act, 2017, which lists
activities or transactions that are not considered as supplies
of goods or services. Specifically, entry 1 of Schedule III
states that “services by an employee to the employer in the
course of or in relation to his employment” are not treated
as supply of goods or services.
 2. CIRCULAR NUMBER
there may not be a specific circular issued by the Central
Board of Indirect Taxes and Customs (CBIC) addressing the
question of whether remuneration to a partner from a
partnership firm is subject to Goods and Services Tax (GST) in
the hands of the partner.However, it’s important to note that
remuneration received by a partner from a partnership firm
for services rendered as a partner is generally not subject to
GST. This is because services provided by a partner to the
partnership firm in the capacity of a partner are not
considered as supplies of goods or services for GST purposes.
3. ADVANCE RULING
Under the GST law in India, services provided by an employee
to the employer in the course of or in relation to employment
are not considered as supplies of goods or services (Schedule III
of the Central Goods and Services Tax Act, 2017). Since partners
are not considered as employees but as co-owners of the
partnership firm, remuneration received by them for services
rendered in their capacity as partners falls under this
exemption.While there may not be a specific advance ruling on
this matter, taxpayers can rely on the provisions of the CGST
Act, 2017, and Schedule III for guidance on the tax treatment of
remuneration to partners from partnership firms.
4. CONCLUSION
In conclusion, remuneration received by a partner from a
partnership firm for services rendered as a partner is
generally not subject to Goods and Services Tax (GST) in the
hands of the partner.Under the GST law in India, services
provided by a partner to the partnership firm in the capacity
of a partner are not considered as supplies of goods or
services for GST purposes. Therefore, remuneration received
by partners for such services falls outside the scope of GST.

THANKYOU!