GST Tip – 220

As per the Composition Rules, any taxpayer who has been provided provisional registration, have to file an intimation in FORM GST CMP-01 if he opts to pay tax under composition scheme on the common portal or through GST facilitation center notified by the commissioner prior to appointed day or within 30 days from appointed day.

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GST Tip – 219

As per the Composition Rules, every person registered as Composition person under GST on the bill of supply issued by him has to mention the words “composition taxable person, not eligible to collect tax on supplies”

GST Tip – 218

As per the Determination of Value of Supply Rules, “supply of goods or services or both of like kind and quality” means any other supply of goods or services or both made under similar circumstances that, in respect of the characteristics, quality, quantity, functional components, materials, and reputation of the goods or services or both first mentioned, is the same as, or closely or substantially resembles, that supply of goods or services or both.

GST Tip – 217

As per the Determination of Value Supply, Open Market Value has to be considered for some transactions and OMV is “open market value” of a supply of goods or services or both means the full value in money, excluding the integrated tax, central tax, State tax, Union territory tax and the cess payable by a person in a transaction, where the supplier and the recipient of the supply are not related and price is the sole consideration, to obtain such supply at the same time when the supply being valued is made.

GST Tip – 216

As per the Determination of Value of Supply Rules, the formula is given to derive the tax amount from the total value of supply in cases where the value of supply includes GST taxes.  Tax amount= Value inclusive of taxes X tax rate in % of IGST or as the case may be CGST, SGST or UTGST divided by (100+ sum of tax rates, as applicable, in %).

 

GST Tip – 215

As per the Determination of Value of Supply, in the case of insurance premiums, the value of supply for determining GST will be 25% of the premium charged for the first year and 12.5% from the subsequent years only if the policyholder is aware of the amount to be allocated for investment or other than single premiums.