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Your Queries
Goods and Services Tax
(Contributed by CA Mohammad Salim)
Supply GST Act the future supplies of goods or
services are taxable. However, tax is now not
Whether future supply of goods or services required to be paid at the time of receipt of
is taxable under GST? advance in respect of goods vide Notification
s per erstwhile Section 66B of the Finance No 66/2017-Central Tax, dated 15-11-2017.Thus
AAct, 1994, service tax was levied on future supplies of goods are now not taxable
services provided or agreed to be provided. under GST Law. In such cases tax would
Accordingly, service tax was applicable be paid upon issue of invoice/due date of
on future supplies. Any advances received issue of invoice. However, future supply of
towards such future supplies were exigible services is still taxable, and tax is required
to service tax. However, future supplies of to be paid upon receipt of advance towards
goods was not subject to tax as per the such supplies.
VAT/Excise Laws. A small manufacturer supplies cycle parts
As per the Charging Section of the GST to a manufacturing unit. For every supply
Acts(s) it has been mandated that GST shall he generates an invoice for an amount
be levied on supplies of goods or services which includes the value of cycle parts
or both. But the expression ‘agreed to be as well as the amount charged towards
provided’ does not appear in the charging transportation and loading charges. Whether
section of the GST Act. However, as per in this case the supply would be regarded
Sections 12 and 13 of the CGST Act, 2017 as that of only goods i.e. cycle parts or of
the time of supply of goods or services or goods as well as services i.e. cycle parts
both would be triggered if any advance has and transportation and loading?
been received even if supply has not been his supply would be regarded as composite
made. Thus, it can be said that under the Tsupply in light of Section 8 of the CGST
158 January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 52
