Benefit of Third Proviso to Rule 28 in case of actual consideration, Goods and Services Tax - GST

[Abhijeet Mane]

Hi If the Company A has recevied the actual consideration from related party (Let say 1000 Rs) for providing services. Related Party is eligible for Full ITC then also whether the Company A can take benefit of Third Proviso to Rule 28 and pay GST at any value including NIL Value

Posts / Replies

[Mary Bridges]

When Company A receives actual consideration from a related party (e.g., Rs 1000) for services and the related party is eligible for full ITC, Company A can indeed benefit from the third proviso to Rule 28. This allows GST to be paid on any value, including NIL, as long as the recipient is eligible for full ITC. Billing Software simplifies the invoicing process and ensures you're compliant with GST rules!

[Shilpi Jain]

If the recipient is eligible for full ITC then certainly nil is also a possible value. Circulars have clarified this view.

[Tarun Agarwalla]

I hope we may read 2nd proviso to rule 28(1) in place of third proviso.

thank you