GST: To pass on tax benefits, first tabulate them, say experts


Experts help clear doubts around the impact of the new indirect tax regime on businesses


LATEST NEWS : I am a service provider having offices in multiple states. Under the service tax regime, I had a centralised billing system. Under the GST regime, should I change my billing system and start raising invoices from the local branch?


Jivi Jebaraj, Chennai


In the GST regime, service providers are required to obtain registration in each state where they have a place of business. The concept of centralised registration is now redundant. If the services are entirely supplied from the branch, or the branch plays a significant role in supplying the services, then such a branch shall be required to raise invoices and charge applicable GST. It is critical to identify the “establishment” rendering the service and the “establishment” receiving the service to complete the input tax credit chain.


How do I ensure that I pass on the benefit to consumers in accordance with the anti-profiteering clause under the GST? Is there any mechanism prescribed for calculating the benefit due to the GST?


Dwarkesh Jhaveri, Mumbai


Anti-profiteering clause is a self-policing mechanism. The anti-profiteering rules notified by the government contain provisions relating to constitution of authority, procedure for conduct of proceeding, etc. Companies need to tabulate the benefits arising out of the GST on some reasonable basis and pass them on to the consumer. The rules do not contain any mechanism to calculate the benefit or the basis on which it will be passed on to the customer.

ALSO READ THIS : Now, pay GST if you earn over Rs 20 lakh per year as rent




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