Page 10 - Banking Finance August 2017

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

No coercive steps against GST leviable on housing societies if monthly subscrip-

lawyers tion above Rs.5000/-month
The Delhi High Court Bench has re- Resident Welfare Associations charging more than Rs 5,000 per member as
quested monthly subscription and if the annual turnover of RWA
the Cen- by way of supplying of services and goods is more than
tral Gov- Rs 20 lakhs, then GST provisions are applicable
ernment In the GST regime, businesses with turnover of up to
to clarify Rs 20 lakh are exempt. Further, if the aggregate turn-
whether over of such RWA is up to Rs 20 lakh in a financial year,
services of lawyers and law firms are then such supplies will be exempted from GST, even if charges per member are
covered under GST. It has empha- more than Rs 5,000. However, RWAs supplying of services and goods aggregat-
sized not to take any coercive steps ing more than Rs 20 lakhs per annum will attract 18 % tax. There will be no GST
against lawyers and law firms which on annual subscription/fees charged as lodging/boarding charges by educational
are not registering or non-complying institutions from its students for hostel accommodation.
with the Central Goods and Services
Tax Act, Integrated Goods and Ser- Free food supply at religious places: No GST
vices Tax Act, or the Delhi Goods and
Services Tax Act, until further notice. The Government is quite clear on its intentions when it comes to applicability of
GST. It has been clarified that no tax is at-
MSME Minister positive tracted on the free food supply at religious
places. However, the ingredients used in mak-
on Khadi's GST exemption ing such offerings including sugar, vegetable
Kalraj Mishra, Minister for Micro, edible oils, ghee, butter as well as the service
Small and Medium Enterprises for transportation of these goods will attract
(MSME) mentioned his hopes on ex- GST. Since GST applies to raw materials and services in successive stages of pro-
emption to Khadi products. Currently, duction, it is difficult to administer end use-based tax exemptions or concessions.
5 % tax is levied on the products while
it is 12% on the goods produced by Sale of old jewellery or old car - No GST
village industries. Even the finance "Even though the sale of old gold by an individual is for a consideration, it can-
minister (Arun Jaitley) had assured not be said to be in the course or furtherance of his business (as selling old gold
me to give a GST exemption for the jewellery is not the business of the said individual) and, hence, does not qualify
financial development of otherwise to be a supply," said the revenue secretary Hasmukh Adhia. Thus any sale of
economically backward lot of weav- old jewellery or old car will not attract any GST as it is not for furthering any
ers and spinners," he said. business.

10 | 2017 | AUGUST | BANKING FINANCE

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