Questions for Answer by Panel on 30-Aug-2020. [GST Litigation Hub]

a) My client (ABC LTD) wants to put an advertisement on Facebook. Facebook is charging Rs 15000 for such advertisement

Are services provided by Facebook be deemed as OIDAR services provided by Non-Resident Online Services Provider?

Will my client ABC Ltd be subjected to GST under Reverse Charge Mechanism?

Yes, OIDAR Services. Registered person is liable to pay under RCM (S. 5(3) read with NT-10/2017-CTRSl NO 1).

As per Sec 14 of the IGST Act, the levy of GST is shifted to the OIDAR supplier if supply is made to the non-taxable online recipient.

In the above case, what shall be answered if an individual ( Unregistered in GST) wants to put “PAID ADVERTISEMENT” on Facebook for his personal services

Will Facebook charge and collect GST? or An individual shall be required to get registered and pay GST under RCM? 

My client had given a contract to the builder for the construction of the immovable property. The builder could not complete the contract hence my client recovered Rs 50 Lakhs as LIQUIDATED DAMAGES or COMPENSATION from Builders.

Will, my client be subjected to GST on Rs 50 Lakhs or LIQUIDATED DAMAGES / COMPENSATION is the outside the definition of SUPPLY under GST LAW? [Continued]

My view is that as per schedule II of CGST ACT, Tolerance of an act and agreeing to do an act is the supply of services

However, there was an amendment in supply definition hence items mentioned in SCHEDULE II are just for classification

Schedule II is not the basis for determination of transaction as a supply

The purpose of Schedule II is more of a classification between goods and services. S. 7 defines supply. Do you agree it is a “supply”? If yes, section 9 gets invoked followed by tariff entry (specific entry is prescribed). If no specific entry – residuary. However, evaluate S.7(1) more and not S. 7(2), you can get relief.

My point is on S 7(1)(a) – the moot question is whether we can call such activity “business”? Is the concerned person said to be engaged in taking liquidated damages from builders? It will fail the definition of business and hence S 7(1)(a), levy itself fails. If the levy fails, no need to proceed further for Sch-II entry.

 In the present case client recovered Rs 50 Lakhs as LIQUIDATED DAMAGES from a builder, GST will be levied on that forfeited amount since it has ‘tolerated of the act’ therefore, GST is liable to pay. View confirmed in In re M/s. North American Coal Corporation India Private Limited (GST AAR Maharashtra); Advance Ruling No. GST-ARA07/2018-19/B-63; 11/07/2018 In re Rashtriya Ispat Nigam Ltd (GST AAR Andhra Pradesh); Advance Ruling No. AAR 01/AP/GST/2019; 11/01/2019

In re M/s. Dholera Industrial City Development Project ltd. (GST AAR Gujarat)

In COMP- 08 of Dec-2019, the taxpayer wrongly mentions the Taxable Value. [Rs. 30,00,000 entered instead of 3,00,000 correct figure]. There was no difference in tax liability. Can we rectify the mistake in GSTR-4 for 2019-20? All the values in GSTR-4 are auto-populated from Comp-08. So how can it be corrected? 

What is the relevant date in case of a Refund for the inverted duty structure? i.e. What shall be the due date for Refunds of inverted tax structure? For example, what shall be the last date to apply for a refund for the month of August-2018?

Our registration was cancelled by Department due to the non-filing of Returns.

we had applied revocation of cancellation in the month of March-20 but it was rejected. We had reapplied for revocation in August-20 and we were asked to file GST returns and pay taxes.

But we could not reply to notice and the application was rejected.

Now when we try to reapply after filing returns the message comes as “your application is rejected twice”. Now no option is available to apply again. Sir, how do we reapply?