sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Service Tax »
 12 ways to avoid paying more for bank services
 I-T return filing: Income Tax offices, Ayakar Seva Kendras to remain open from March 29-31
 Top 5 money matters you must settle before March 31 From income tax returns to LTCG,
 Steep fines for missing March 31 income tax deadline
 CBEC clears some air on refunds under GST, central excise, service tax laws
 3 key tax changes for senior citizens which will come into effect from April 1, 2018
 Income tax returns (ITR) filing: Not filed returns for 2 years? Beware! Deadline nearing
 All you want to know about HRA: When you can claim and how it is calculated?
 Income Tax Saving: 6 ways to save tax without investing before March 31 tax deadline
 Unnable to file your tax return? Take help of these portals
 Do you know which 80C instruments can help you save tax and carry no future tax liability?

GST and You: How are free samples treated under the new tax regime?
June, 13th 2017

While the GST (goods and services tax) is exempt for those with annual turnover below Rs 20 lakh, what is included/ excluded when calculating the total turnover?

Section 22 of the CGST Act, 2017, provides provisions with regard to a person who is required to obtain registration under GST. According to this, every supplier is liable to be registered in the state or Union Territory, other than special category states, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs 20 lakh. Provided that where such person makes taxable supplies of goods or services or both from any of the special category state, he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs 10 lakh. Thus, the requirement for obtaining registration shall only arise if a person makes taxable supplies from that state. Further, the term ‘aggregate turnover’ means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on a reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number (PAN), to be computed on all India basis but excludes central tax, state tax, Union Territory tax, integrated tax and cess;

To summarise, the aggregate turnover of a person would include the following:

Taxable supplies (supply of goods or services which is chargeable to tax under this Act)
Exempt supplies (supply of goods or services which attracts no tax or are wholly-exempt from tax and includes non-taxable supply)
Export of goods and/or services
Stock transfers between different states

How are free samples treated under GST?
According to credit provisions in the GST Act, input tax credit shall not be allowed for goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples. Accordingly, input tax credit is required to be reversed pertaining to goods which have been disposed of by way of free samples.

I work for an insurance company. Under GST, if my agent does not file income tax returns, even I will not get credit for it. Since I have a lot of small agents, what is the way out?
Services received by an insurance company from an insurance agent have been specifically prescribed in the list of services taxable under the reverse charge mechanism in GST.

In the current case, the insurance company (service recipient) shall be required to pay GST under reverse charge mechanism for services provided by an insurance agent (service recipient). Further, the insurance company should also be eligible to avail credit of tax paid under reverse charge mechanism, irrespective of the fact whether the service provider is registered under GST or not. In this regard, it is noteworthy that there should not be any requirement for the insurance agent to obtain registration and file returns under GST.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions