Page 52 - Corporate_Professional_Today

your QuerieS
Act, 2017 according to which in the instant case,
the principal supply would be regarded as that
of goods i.e. cycle parts which constitutes the
predominant element of composite supply and
to which the other supply i.e. transportation
and loading is ancillary. Accordingly, such
supply would be regarded as supply of the
principal supply i.e. cycle parts and the rate
of tax applicable on the cycle parts would be
charged on the total value of such supply.
Time of Supply
How is the time of supply to be arrived
at in respect of continuous supply of goods
or sale on approval basis?
o separate provisions exist under the
NGST Law for determining the time of
supply of continuous supply of goods/sale
on approval basis thus we need to fall back
upon the provisions of Section 12(2) of the
CGST Act according to which the time of
supply in respect of goods is the date of issue
of invoice or due date of issue of invoice as
per Section 31(1) whichever is earlier. The
due dates/time limits of issue of invoices in
normal cases are mandated in Section 31(1)
of the CGST Act whereas due dates of issue
of invoice in case of continuous supply of
goods and sale on approval basis are laid
down under section 31(4) and 31(7) of the
CGST Act respectively. Accordingly, in cases
of continuous supply of goods and sale of
approval basis at the time of supply would
be the date of issue of invoice or due date of
issue of invoice as prescribed under section
31(4)/31(7) of the CGST Act.
However, a catch here is that Section 12(2)
refers only to Section 31(1) of the CGST Act
and does not refer to Section 31(4) and 31(7).
In order to obviate disputes in this regard
amendment to Section 12(2) of the CGST Act
is suggested.
January 20 To January 26, 2018 u Taxmann’s Corporate Professionals Today u Vol. 41 u 53
Place of supply
X Ltd. a dealer in Delhi sent certain
components to a site in Raipur (Chhattisgarh)
belonging to Y Ltd. of Bhopal (Madhya
Pradesh) for assembly and installation at
site. What would be the place of supply?
As per section 10(1)(d) of the IGST Act, 2017
in this case the place of supply will be the
place of installation/assembly i.e. Raipur
(Chhattisgarh). However, this Section will
apply only if the instant contract is not a
work contract as defined under section 2(119)
of CGST Act,2017. In case a work contract is
being executed, Section 10 would not apply as
work contract is treated as supply of service
as per Schedule II of the CGST Act. In such
case if such supply is directly in relation
to construction of immovable property the
place of supply would be location of such
immovable property i.e Raipur (Chhattisgarh)
as per Section 12(3) of the IGST Act. In case
it is not covered under Section 12(3) the
provisions of Section 12(2) would come into
play and the place of supply would be the
location of the recipient.
Valuation
Whether giving free samples of medicines
to Doctors can be regarded as supply?
Whether input tax credit in such case is
admissible?
s no consideration is involved, the
Adistribution of free samples by manufacturers
of medicines to Doctors would not be regarded
as supply in light of Section 7(1)(a) of the
CGST Act, 2017. However, in such cases,
the input tax credit availed in respect of
said samples must be reversed under section
17(5)(h) of the CGST Act, 2017.
lll
159