Friday 23 June 2017

Taxable Event in GST

Under GST Tax is on supply of goods or services,or both.
Whenever there is supply taxable even occurs.
  • GST is charged on Supply and not on sale.
  • Consideration is not required for supply.
  • Free Gifts to Related persons will be Taxable.As per GST Act Employer and Employee are Related Persons. Hence Fringe benefits by employer to employees like transport are taxable.
  • Gift of  upto 50,000 to employees will not be chargable for GST. But its input tax credit is required to be reversed.
  • Supply between two distinct persons in course of business is taxable. It covers-Branch Transfers,Stock Transfer from one state to another, services by banks and telecom companies from one state to their own branch in another state. 
  • Supply by Principal to Agent is subject to GST
  • Stock Transfer,Branch Transfer are also covered.
  • Comission agent has to pay GST only on his comission. 

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