Question ID :
taxability of transaction
One of my client has receipt goods on the basis of Delivery Challan as per rule 55(1)(C) against refundable security deposit.and no any TAX invoice has been issued from the supplier.
the same goods is selling to retailer without giving Tax invoice and retailer to Customer along with some profit margin at each stage.
Client is JIO Dealer and received Mobile Phone through Delivery Challan against Security Deposit.
it is mentioned on the box NOT FOR RETAIL SALE.
sir please reply to this query with respect to GST Return.
whether it is Non GST inward Supply or it is Taxable supply ?
Answer ID :
Sep 14, 2018
Much to my disagreement that there is no supply here, once it is admitted to be transaction covered by 55(1)(c), that is, 'other than supply', there is no requirement to report in 3B. As such, question of non-GST or taxable inward supply does not arise. Only if the transaction is admitted as a supply will it require to be reported in 3B.
However, the mention that there is some profit margin appears to indicate there may be a supply of service (or goods) and this cannot escape reporting in 3B. So, please identify what is the supply relating to - goods or services - and accordingly consider whether services need to be reported.
Following additional points for your kind consideration:
a. Disagreement stated above is due to the fact stated in the query itself that there is a sale of goods from one person to the next in the distribution chain
b. If none of the transactions (where the goods change hands) are treated as supply, it is not clear how in the query it is stated that - there is some profit margin at each stage.
c. SIM card is not sale of goods but delivery of goods for supply of mobile services. Please consider this and examine facts further as it is not clear from the query, whether aspect of sale of goods has been clearly established
d. In case goods are not supplied but services are supplied, 55(1)(c) may well be true for the goods delivered in the course of providing services. Please examine this aspect
e. Lastly, please examine whether there is any Principal-Agent transaction involving mobile phones itself which attracts sch i, para 3
I'm afraid, due to insufficient information, it was not possible to provide a short and specific response, request to be excused due to this predicament. Hope the points to consider will help in reaching correct reporting as Oct 31, is last date to report GSTR-1 for 2017-18.
CA. JATIN CHRISTOPHER A on
Sep 17, 2018