Circular No 27/01/2018-GST, 4 th January 2018

    In a Circular No 27/01/2018-GST dated 4th January 2018, the Ministry of Finance has attempted to clarify certain issues on the levy of GST for specified services.     Accommodation Services     The Circular clarifies that GST would be levied on the tariff published anywhere. In case the actual amount charged differs from the published tariff, GST would be charged on the actual amount charged. If tariff changes between booking and actual usage, GST would be charged on the published tariff at the time of supply (which, one should assume, would be the time of booking).   Read more


If you ask 3 Indians for their opinion on GST, you will get 5 views. These opinions would basically on the law overall and whether it has been good or bad for the country. We are not talking about these opinions. Readers would be aware that the major parts of the GST law are from the existing VAT, Central Excise and Service tax laws. Still, there are a number of issues that could be interpreted differently by different people. For example, claiming credits for GST paid on reverse charge paid as per Section 9(4) (which has been deferred till 31st Read more

GST and it’s Impact on Employer, Employee

A specific exemption was notified under service tax for services rendered by an employee to an employer. Employees all over the country should be relieved that the same exemption has been continued as the opening entry in Schedule III of the Central Goods and Services Tax (CGST) Act — services by an employee to the employer in the course of or in relation to his employment shall never be treated as supply of either goods or services. As far as the employer is concerned, Schedule I of the CGST Act states that gifts not exceeding Rs 50,000 in value in a Read more

Rs 5000/- per day or Rs 150,000/- per month?

The most discussed topic under GST is probably the reverse charge mechanism. In particular, Section 9(4) which reads as follows:   (4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.   In essence, any Read more


As too many things are happening on GST at the same time, everyone is finding it difficult to absorb the heaps of information being cast upon them at regular intervals. To add to the confusion, the CBEC has commenced the activity of issuing Notifications. One can expect a flood of Notifications soon.   One of the biggest disappointments is that the CBEC has not thought of simplyfing the Notifications. Every Notification has the following :   In exercise of the powers conferred by……. on being satisfied that it is necessary in the public interest so to do, intra-State supplies of Read more