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MCQ Self Challenge #0090 on Person liable to pay GST in case of Accommodation through E-Commerce Portal

 

Person liable to pay GST in case of Accommodation through E-Commerce Portal

 

Dear Professional Seniors & Friends,
Warm Greeting!

Here is the Next post of #MCQ on concept based practical professional knowledge on Person liable to pay GST in case of accommodation through E-Commerce Portal in a unique manner to be self answered by participants. The detailed answer of these MCQs shall be posted next day for the self assessment of the participants.

MCQ 90.1: Mr. Sanjay provided Hotel & Lodging Services via Make my Trip, an e-commerce portal. Mr. Pramod is billed for Rs 10,000 for his stay in hotel. Mr. Sanjay’s turnover during the previous year is Rs 10 Lakhs. Who is required to deposit GST under CGST Act, 2017?

A. Make my Trip
B. Mr. Sanjay
C. Mr. Pramod under Reverse Charge Mechanism
D. None of the above.

MCQ 90.2: Is Mr. Sanjay liable to take registration in above question?

A. Yes as the person providing services through ECO are not liable to take registration.
B. No as his turnover do not exceeds Rs 20 Lakhs.
C. No, as in this case liability to pay tax is of ECO & turnover do not exceeds Rs 20 Lakhs.
D. None of the above.

Sincere Regards

CA Sanjay Kumar Agrawal
Mobile: 9810116321

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Answer MCQ Self Challenge #0090

 

Dear Professional Seniors & Friends,

Warm Greetings!

 

This post of MCQ is on provisions relating to time of supply under GST in case of change in rate of tax.

 

Answer MCQ 90.1: A) Make my Trip

Answer MCQ 90.2: C) No, as in this case liability to pay tax is of ECO & turnover do not exceeds Rs 20 Lakhs.

 

Practical Analysis for MCQ 90.1:

 

  • A person is liable for payment of CGST in case of Services provided by him having turnover exceeding Rs 20 lakh (Rs 10 lakh per annum) and thus required for registration under 22(1) of CGST Act ,2017.

 

  • Notification No. 17/2017-Central Tax (Rate), has been issued making ECOs liable for payment of GST in case of accommodation services provided in hotels, inns guest houses or other commercial places meant for residential or lodging purposes provided by a person having turnover below Rs. 20 lakhs (Rs. 10 lakhs in special category states) per annum.

 

Based on the above analysis, Correct Answer to MCQ 90.1: A) Make my Trip

 

Practical Analysis for MCQ  90.2:

 

  • Section 24 of CGST Act lists out cases of mandatory registration.
  • Entry no. 9 of that section provides that the person providing services through ECO are mandatorily required to take registration.
  • But as discussed in first question, in cases where turnover of person providing accommodation services is less than Rs 20 Lakhs, liability to pay tax has been shifted to ECO’s vide Notification No. 17/2017.
  • Now the situation exists that where a provision of Act and a notification contradicts.
  • In this regards, Circular No. 27/2018 has been issued to clarify the issue that such persons whose turnover are less than Rs 20 lakhs, even though they provide services through ECO, are not required to take registration in view of section 24(ix) of CGST Act, 2017.

 

Based on the above analysis, Correct Answer to MCQ 90.2 : C) No, as in this case liability to pay tax is of ECO & turnover do not exceeds Rs 20 Lakhs.

 

 

(Disclaimer: The objective of the MCQ post is just to discuss the concept, it may happen, by change of facts, the answer may be different. Please do not treat this as professional opinion; you can definitely have your own opinion.)

 

Sincere Regards!

 

CA Sanjay Kumar Agrawal

Mobile: 9810116321

 

To access MCQ posts regularly, please Join Telegram Channel:
https://t.me/caSanjayKumarAgrawal

 

For All MCQ post please click on:

Webpage: http://www.casanjay.me/

Facebook: https://www.facebook.com/CA.Sanjay.K.Agrawal/

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