Deduction of GST at Source
We are in the business of manufacturing & supplying equipment to Municipal Councils and charge VAT on the billed amount. The councils had a practice of deducting VAT from our supply bills, deposit the same in government account and give us certificate to that effect to enable us to claim set off for the amount.
We have manufactured, supplied and billed some equipment in the month of June & charged VAT. Payment for the same is being released in the month of July. The Municipal council insists that they will deduct GST from our bills at applicable rates.
my questions are
1. Is is correct to deduct GST from bills issued in June & paid after 1st July.
2. Is it at all legal for the municipal councils to deduct GST?
3. where & how will they deposit the amount so deducted?
4. how will we get input tax credit? more
We have manufactured, supplied and billed some equipment in the month of June & charged VAT. Payment for the same is being released in the month of July. The Municipal council insists that they will deduct GST from our bills at applicable rates.
my questions are
1. Is is correct to deduct GST from bills issued in June & paid after 1st July.
2. Is it at all legal for the municipal councils to deduct GST?
3. where & how will they deposit the amount so deducted?
4. how will we get input tax credit? more
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Oct 31
I agree with s k virmani, in India all things are possible and specially govt dept., hell is the last word if you transact with these dept., and forget about business getting statutory forms & payment is herculian task and the same govt makes rules for others and for govt it is broken and taken for granted !! secondly they cannot apply GST for supply made prior to GST date and payment is not linked to GST date at all !! but again as I said govt dept is govt dept and oh god least say is better !! send communication to directly to finance minster Arun Jaitley & cc to Mr.Modi to answer this ! more
Jul 25
to top it all, they are not ever registered with GST. So how will they submit a return of the tax deducted & how will we get ITC?
we are going to face this problem for every supply we make after 1st July. more
we are going to face this problem for every supply we make after 1st July. more
Jul 25
Dear Milind My answers are as follows. 1.They cannot deduct GST on supplies made prior to 30.06.2017 2.No.They cannot deduct GST from suppluies after 01.07.2017. 3.The situation does not apply 4.You get ITC only on your purchases and not on your sales Hope you are registered under VAT and now under GST more
Jul 25
Dear Sasidharan
regarding point No.2, I too did some research on the subject. As per section 51 of the GST act, some notified departments can deduct tax at source @ 1%, if the bill value exceeds 2.5 lacs. these departments also have to register themselves with GST & submit electronic returns within the due date as specified for others. ITC will be available on these deductions. more
regarding point No.2, I too did some research on the subject. As per section 51 of the GST act, some notified departments can deduct tax at source @ 1%, if the bill value exceeds 2.5 lacs. these departments also have to register themselves with GST & submit electronic returns within the due date as specified for others. ITC will be available on these deductions. more
Jul 25
No one can even talk of applying and / or deducting GST on invoices dated up to 30/06/2017. You immediately approach the GST Committee with your problem. They will instruct the Munciple Corporation suitably. more
Jul 24
There is no such system where the GST shall be deducted for the contracts executed prior to 1st July 2017. GST is linked with invoices and not with release of payments. However in India everything is possible whether there is any logic or not. more
Jul 24
