Sunday, November 28, 2021

ਵਾਹਿਗੁਰੂ

spot_img
yes punjab punjabi redirection

Lokan Da Channi

Channi 8

Bijli Bill

36000

Sada CM

Hunarmand

Mera Ghar

Kisan Karza

Markfed Sept to Nov

Innokids Green

Service rendered by govt, not its agency, only exempt from GST

- Advertisement -

New Delhi, Oct 24, 2021- Private and public sector agencies providing goods and services and collecting charges from clients on behalf of the government will not be exempt from paying GST and have to pay the tax at applicable rates, the Telangana Authority for Advance Rulings (AAR) has ruled.

Services by the Central government, state government, Union Territory or local authority are exempt from GST but this rule has a few exception, including services provided to business entities.

The AAR Telangana ruled that e-procurement transaction fee collected by an agency on behalf of the government is chargeable to GST.

According to a senior partner at AMRG & Associates, Rajat Mohan, the authority also clarified that neither the services rendered by a business entity to the government nor its activity acting on behalf of the government, qualify to be treated at par with services rendered purely by the government or its agencies that are exempt from GST.

The AAR ruling came on an application by the Telangana State Technology Services Ltd (TSTSL), a public sector undertaking and a service agency to the Telangana government and its departments relating to IT and related services.

One of such services provided by the TSTSL is acting as a fund manager on behalf of state IT E&C Department in executing e-procurement process.

TSTSL, as fund manager, receives entire amounts such as e-procurement transaction charges into a designated bank account.

On receipt of the e-Procurement Transaction Fees (inclusive of GST), the TSTS is paying 18 per cent GST on the fees on a monthly basis and recognises its share of service charges and again pays GST at 18 per cent on a monthly basis.

The balance amounts are utilised for IT expenditure towards the specific requirements of the departments concerned.

In its plea, the applicant said that he is acting as a pure agent on behalf of the state government which is floating tenders amounting to supply of services and argued that such supply may not attract tax under CGST Act, 2017.

However, the AAR clearly distinguished between services provided by government and someone on behalf of the government and held that the latter activity is taxable. (Agency)

Subscribe to YesPunjab Telegram Channel & receive important news updates

- Advertisement -

Yes Punjab - TOP STORIES

Punjab News

Sikh News

Transfers, Postings, Promotions

- Advertisement -spot_img

Stay Connected

20,369FansLike
112,995FollowersFollow

ENTERTAINMENT

National

GLOBAL

OPINION

Taliban Fighters

The ‘Good’, the ‘Bad’ and the ‘Deobandi’ Taliban – by Asad Mirza

While an effort to classify the Taliban into good and bad is rather easy, the underlying reasons to classify them as Deobandi becomes a...
Interest Rates

When you (and everyone else) expect interest rates to rise – by Suyash Choudhary

The last few weeks have been notable from a global rates environment standpoint, particularly in developed markets. Markets across many such geographies have brought...
Diwali Diya

Diwali resolution we need in Covid times for a breathable future – by Dr Rajat Arora

The much-awaited festival of lights stands at our threshold -- the harbinger of peace and prosperity. With the economy coming back on track after...

SPORTS

Health & Fitness

Device alerts risk of heart attack

This device alerts risk of heart attack due to over exercising

New Delhi, Nov 28, 2021- There have been reports of sudden death of some film actors and other big personalities. Despite being healthy and young, these deaths happened due to cardiac arrest. Experts say a big reason for this is excessive exercise. IIT scholars have now come up with an innovative device that will raise an alarm about the risk...

Gadgets & Tech