Deemed supply and Input credit availabilty of same, Goods and Services Tax - GST

[Vinod Maheswari]

Dear Sir

1) What is deemed supply. Please provided example for that. .

2) if I am providing railway wagon loading services to my customer who pay railway freight himself. I am getting consideration for Loading only. Now if loading is not done as per railway parameter than they charges additional freight called under loading / Over Loading charges and recovered the same from my customer..

Now customer instead of taking credit note from me he himself issue Tax Invoice for recovery of under loading/ Over loading charges paid to railways . This invoice issued as per CGST Schedule II (e) which says "agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act".

Now my question is

a) Can I take Input credit of the same .(although as per condition of Section 16 (2) (b) one has to received the services). So can I say I have received the services while its deduction for me .

b) Can this fall under deemed supply.

c) After amendment in CGST Act w.e.f 30 Aug 2018, Schedule II is not consider under Scope of supply and schedule II only identified whether a supply as per section 7(1) is supply of services or supply of goods. So now with this amendment recovery of any amount on account of deficiency in services will be come under scope of supply or not.

Please provide your valuable comment.

Posts / Replies

[Kothapally RajiReddy]

Sir, Tolerating service is supplied here. So credit can be taken in my view. Yes it is deemed supply in terms of Schedule-II.