Q.Does GST apply on the room charges and food charges charged by Religious trust for accommodation during a religious event? The Food Charges are Rs. 500/- per day and accommodation charges are Rs. 500/- per night. What are GST implications? Is the trust required to do GST registration?
A.Providing accommodation and serving food both are supply of services. Room charge up to Rs.1000/- per day is exempt from GST. Food charge of Rs. 500/- would be subject to 5% GST. The trust is required to get GST registration if the turnover crosses the threshold limit and if not exempted from GST.
Q.How does the supplier generate E- way bill when goods are collected by recipient of goods from the Suppliers Godown?
A. In this case, E- way bill will be generated by the recipient.
Q. I am a trader in medical Equipment. I also provide services namely repairs, AMC, etc. Total turnover of goods is 35 lakhs and Services is around 12.5 Lakhs Am I required to register for GST as my Turnover for goods is under 40 Lakhs and service is under 20 Lakhs?
A. Since you are supplying goods as well as supplying services, threshold limit for GST registration is 20 lakhs. (Limit of 40 lakhs is for those who are supplying exclusively goods). Hence, you are liable for GST registration.
Q. What are the GST rates on construction of residential premises?
A. With effect from 01st April, 2019 GST rates are as under:
Description GST Rate
(after deduction of value of land)
i. Affordable residential premises 1% without ITC
ii. Other residential premises 5% without ITC
Affordable residential premises mean carpet area up to 60 square meter in metropolitan cities and 90 square meters in other cities or towns AND amount of consideration is not more than 45 lakh rupees.
Q. What is tax payable under Reverse Charge Mechanism (RCM)?
A. Normally GST is payable by supplier of goods and services. But, as per certain Notifications, the recipient of specified goods and services is liable to pay GST which is known as GST payable on RCM.
Some examples of services subject to RCM: Goods transport Agency, fees to advocates, services given by director to the company, Insurance Agent, recovery agent of banking company, lending securities etc.
Q. We have imported machinery from Germany. It got little damaged in transit. At the request of overseas supplier, we got it repaired. We have to recover the repairing charges from supplier. How do we do it and any GST implication?
A. Raise a Debit Note for reimbursement. No GST implication on such recovery.
Q. We are contractor of construction of real estate. The contractee (i.e. the builder who gives contract) supplies us cement and steel to be used in contract. What is the GST implication?
A. The price of cement and steel will be included in the value of taxable supply although incurred by the contractee (Maharashtra Advance Ruling Authority in case of Tejas Construction).
Q. We are exporting goods by effecting delivery of goods to ship (proceeding from Mumbai port to foreign port) from bonded warehouse. Will this be exempt from GST?
A. Yes (Schedule III of CGST Act).
Q. We are a public charitable hospital having our pharmacy store also. Through the pharmacy, we supply medicine, surgical items, consumables, to in patients. Is there any GST liability?
A. This is composite supply of health care treatment and not liable to GST.
Q. We are deploying gaming machines and equipment’s in Mall. How would GST apply?
A. These are amusement facilities liable to GST @28%..
Q. Is GST levied on charges for use of community hall or terrance? Is there GST on transfer fee?
A. The answer for both questions is yes.
