Schedule-I supply, Goods and Services Tax - GST

[Archna Gupta]

Dear Sir

Please let me know that how we will show Schedule-I supply in GSTR-1 and GSTR-3B. Suppose a registered person gives his business asset after two years of purchase to an NGO permanently without consideration on which he had taken ITC of ₹ 18000/- at the time of purchase. Now the open market value of this asset is say 50000/- and the applicable rate is 18%. Please help that how we will show this transaction in GST returns?

Posts / Replies

[PAWAN KUMAR]

As per my view, section 18(6) CGST Act treats this.

ITC taken reduced by percentage points 5% per Qtr. to be reduced from date of purchase or tax on transaction value, higher of both.

[Archna Gupta]

Thanks Mr. Pawan for your reply. But I have issue that how we will show this transaction in GSTR-1 and GSTR-3B and what about tax invoice?

[CSSANJAY MALHOTRA]

If you have availed ITC, then as shared by Mr. Pawan reduce the depreciation and raise invoice on NGO at value after depreciation and pay Tax thereon. [irrespective of whether you supply on FOC/charge consideration- Refer Clause 1 of Sch-1 of Supply] . In this case reflect entry in Table 4 or 7 i.e. B2B or B2C supplies of GSTR-1 as the case may be, depending upon whether NGO has GSTIN or not. Accordingly refelct entry in Table 3.1(a) of GSTR-3B if tax is charged and if supply to unregistered then details in Table 3.2 of GSTR-3B also.

Alternatively, move assets under Delivery challan as "FOC supplies" and reverse ITC equivalent to ITC availed less Depreciation @5% per quarter. State this in Table-8 of GSTR-1 , Table 3.1(c) of GSTR-3B, ITC reversal in Table-4 (Others) of GSTR-3B.

Hope above addresses your concern.

[Archna Gupta]

Thanks Sanjay ji for your detailed and comprehensive reply.

Still I have one point in my mind.

If we are giving assets FOC then in my view we should show the same as B2C supply even if the NGO is registered in GST as it will not be eligible to take ITC of the tax paid by us under Schedule-I. Please confirm.

Regards

[CSSANJAY MALHOTRA]

Stating GSTIN on Invoice and declaring in B2C may result in imposition of general penalty under Section 125 of CGST Act for non compliance, hence better to ensure compliance.

[Archna Gupta]

Ok. Thanks Sanjay ji

[PAWAN KUMAR]

As per view, raise tax invoice and upload same in GSTR-1 and also raise commercial credit note of the said amount without adjustment of GST.

[CSSANJAY MALHOTRA]

No need for credit note as invoice itself is for FOC and further not to be booked as revenue in accounting books except for GST payment/utilisation. Further if GSTR-9C is applicable then to add back supplies value either in Deemed Supply or Table 5O as the case may be.

[PAWAN KUMAR]

There is no provision in gst for foc invoice.

[CSSANJAY MALHOTRA]

Read point 1 of SCH-1, you will find answer. You may have varied interpretation but facts remains as stated. Acceptance or not is your call.

[CAVenkataprasad Pasupuleti]

Tax invoice must be issued once any transaction is treated as 'supply' u/s. 31 of CGST Act, 2017 irrespective of whether it is FOC or not and if the recipient is registered, it is advisable to quote GSTIN. Mere issuing of B2B invoice would not give the ITC and recipient must fulfill the conditions u/s. 16.

Further, payment of GST u/s. 18(6) of CGST Act, 2017 is relevant only for capital goods/plant & machinery.

[PAWAN KUMAR]

Dear Sir,

Table 8 of GSTR-1 prescribed for Exempted, Nil rated non GST supplies.

table 3.1 (c) GSTR-3B prescribed for Other outward supplies (Nil rated, exempt).

Showing an Taxable supply which termed as deemed supply, invoices is required in such cases.

even in case where supplies are received from the unregistered, self billing has been prescribed.

[Ganeshan Kalyani]

FOC supplies are to be moved under the cover of Delivery Challan, showing the value and tax therein. This will not be furnished in GSTR-1 or 3B as there is no facility to show FOC supply. Further, the input tax credit after reducing five percentage per quarter to be reversed. The reversal of ITC to be shown in table 4(B)(2) "others".

[Ganeshan Kalyani]

Also, take care to generate e-way bill.

[CSSANJAY MALHOTRA]

With due regards Ganeshan ji, please have look at circular no 92 of central tax and provisions of section 35(6) of CGST act. Your doubts will be cleared.