Gst applicability

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This query is : Resolved

rohit (Querist)

12 June 2017 ABC Co.is a financial service provider company. They received some warehouse charges on behalf of there clients transaction
They simply add a 1% (with service tax & cess) as there service charges to these warehouse charges and pass it on to there clients
They collect payment from them and pass it to respective warehouses(after deducting TDS) and kept that 1% as there income
1 Collected 1% as there service charges with service tax on that 1% and paid service tax to govt
2 Some part of the warehouse charges have service tax itself, they are not taking cenvat cr for that service tax
What they need to do in GST regime?

RAJESH SHUKLA

RAJESH SHUKLA (Expert)

12 June 2017 If ABC Co. is registered under DVAT or Service Tax, it has to be migrated to GST otherwise Service Tax or Dvat registration will be automatically cancelled.

rohit

rohit (Querist)

12 June 2017 ABC Co company had already migrated to GST, How to treat this transaction in GST, Continue to Treat as previously just charge GST in place of Service Tax (on 1% part of service charges)?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 June 2017 In the GST regime they have to charge 18% GST on rent plus commission and take input tax credit.

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rohit

rohit (Querist)

12 June 2017 This Rent is for Commodity we put in warehouse,In service tax regime some of the commodities attracts service tax and some are exempted and warehouses not charge service tax on exempted commodities,
in current, Is GST applicable on all commodities or not?
If no, then we also need to charges gst on applicable commodities rent or on full rent?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

12 June 2017 GST not applicable on warehousing of agricultural produce. You need to charge GST on applicable commodities rent.

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rohit

rohit (Querist)

22 August 2017 Warehouses are charging CGST+SGST on rent (local billing on me) do i also need to charge same (cgst+sgst) to my clients and what if some of my clients are not registered under GST in that state.

Example: warehouse XYZ issued me a bill of rent in Gujarat state, Basicly my HO is in Delhi but I am also registered in Gujarat, further i need to bill this rent to my client by adding 1% of my commission to my client ABC.
Query -
Do i need to bill to client on Gujarat address or i can bill him to Delhi also.
If client is not registered in Gujarat and he is only registered in Delhi.

Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 August 2017 You need to charge gst to your clients. You have to raise invoice wherever you provide services.
Bill him in Gujarat address.

rohit

rohit (Querist)

22 August 2017 But client is not registered in Gujarat, How will i charge him CGST + SGST

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 August 2017 Then charge igst..............

rohit

rohit (Querist)

22 August 2017 But the service is of warehouse rent, can we charge IGST , as rent is defined to billed locally in cgst + sgst.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 August 2017 Yes Bill it locally......,.............

rohit

rohit (Querist)

22 August 2017 As i write above client is not registered in Gujarat Then what i need to mentioned on the invoice in the coloumn of his address/GSTN/Place of Supply etc

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 August 2017 Give Delhi address and gstn No. and mention actual place of supply.

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