After GST - Machinery booking on commission, Goods and Services Tax - GST

[Udaya Kiran]

Hello Sir,

We have a business of booking rice mill machinery, Manufactured by X Company, to rice millers in Andhra Pradesh for which the X company pays commission to me. After GST, can we continue as it is or is it necessary that we purchase from X company and sell it to rice millers.

Thank you.

Posts / Replies

[KASTURI SETHI]

Sh.Udaya Kiran Ji,

After the implementation of GST, the concept of Service will not abolish. It is subsumed into GST. In my view, it will continue.

[Udaya Kiran]

Dear Sir,

Thank you for the reply.

[CS SANJAY MALHOTRA]

I fully endorse the views of Sh. Kasturi ji. Taxability of Service will remain in GST Regime also, only change would be substitution of Service Tax with element of CGST/SGST/IGST as per the nature of Supply i.e. Intra / Inter State.

[Ganeshan Kalyani]

Sir, the basis of taxation would shift from service provided , goods manufactured etc. To the term supply. Hence service is taxable if supply is there. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

It is natural, Sir.

[YAGAY AND SUN]

Lots of work would be needed to capture the existing transaction into GST regime before its' implementation on 01/04/2017. Just revisit all your transactions whether it is related to goods or services, collect all necessary information/inputs/data/documents and then, make a representation to the Government through FICCI or ASSOCHAM to get the replies and smooth implementation of GST.

[Ganeshan Kalyani]

Sir, the analysis of current transaction in view of current taxation and its impact on upcoming GST is essenial to arrive at a business decision. sThanks.