Liability of GST
This query is : Resolved
08 April 2024
Sir,
PSU was entered into MoU with irrigation department for construction of make up water system for its thermal power project. As per terms and conditions of MoU- PSU was required to reimburse GST to irrigation department. The above work was further awarded by irrigation department to private contractor. PSU was also deposit GST under RCM for above work and work executing contractor of irrigation department also deposit GST for above work.
Kindly clarify that
(1) Wheather psu as well as work executing contractor of irrigation department (both the parties) are required to deposit GST for above work?
(2) Wheather any GST exemption available for PSU for above work?
PSU was entered into MoU with irrigation department for construction of make up water system for its thermal power project. As per terms and conditions of MoU- PSU was required to reimburse GST to irrigation department. The above work was further awarded by irrigation department to private contractor. PSU was also deposit GST under RCM for above work and work executing contractor of irrigation department also deposit GST for above work.
Kindly clarify that
(1) Wheather psu as well as work executing contractor of irrigation department (both the parties) are required to deposit GST for above work?
(2) Wheather any GST exemption available for PSU for above work?
09 April 2024
1 Only the work executing contractor of irrigation department is required to deposit GST.
2 No GST exemption.
2 No GST exemption.
09 April 2024
Sir
During the discussion, psu states that above work involves two services first service provdid by irrigation department to psu and second service which is provided by contractor to irrigation department. Thus both the parties pay GST and psu deposit GST under applicable RCM.
During the discussion, psu states that above work involves two services first service provdid by irrigation department to psu and second service which is provided by contractor to irrigation department. Thus both the parties pay GST and psu deposit GST under applicable RCM.
09 April 2024
1) Two transactions are involved here Both PSU and Contractor need to pay GST
2) No Exemption on such transaction in GST
3) No RCM in works contract in GST it will be in FCM
2) No Exemption on such transaction in GST
3) No RCM in works contract in GST it will be in FCM
09 April 2024
GST not applicable on reimbursement of expenses to irrigation department.
GST payable under RCM only on payment for services provided by irrigation department.
GST payable under RCM only on payment for services provided by irrigation department.
10 April 2024
Sir
Can psu claim GST exemption for above case under entry no. 4 of GST notification 12 of 2017.
Can psu claim GST exemption for above case under entry no. 4 of GST notification 12 of 2017.
10 April 2024
No, it will not fall under such exemption.
Double GST payment will not arise.
Pay to the contractor directly and pay only service charges to government irrigation department.
I am a retired power generation PSU Executive Director/Finance, we followed such arrangements.
Double GST payment will not arise.
Pay to the contractor directly and pay only service charges to government irrigation department.
I am a retired power generation PSU Executive Director/Finance, we followed such arrangements.
10 April 2024
From PSU point of view
RCM is applicable on services rendered by the Government department to PSU
No RCM on services given to Government departments by PSU, it will be FCM
RCM is applicable on services rendered by the Government department to PSU
No RCM on services given to Government departments by PSU, it will be FCM
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Capital gain from sale of house property
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- TDS on Purchase of Immovable Property by NRI from NRI
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Copyright software
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- FORM 26A APPLICABILITY
- Multiple trade mark
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
