Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
Law Related Issues
7. Definition of “Inward Supply” – If removed denial of credit.
Section 2(67) of CGST Act provides that “inward supply” in relation to a person, shall mean
receipt of goods or services or both whether by purchase, acquisition or any other means
with or without consideration;
Issue
• Inward Supplies made without consideration are also treated as a part of total inward
supplies. This means present definition shall cause the buyer to upload the purchases
on GSTR 2 for the free supplies which shall not be posted by the supplier causing
reconciliation issues. Since there is no levy on the free of cost supplies, this inclusion
of supplies without consideration need not be required.
• The current definition introduces new terms like ‘purchase, acquisition, etc.’ which
appear to convey that they are the mirror opposite of each of the forms of supply in
section 3(1)(a).
Suggestion
• It is suggested that supplies made without consideration be kept outside the purview
of the definition of “Inward Supply”.
• The above definition be changed to ‘Inward supply’ in relation to a person with
reference to whom the place of supply is determined means the corresponding
supply by the supplier of the outward supply”.
Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
Related Topic on GST
Topic | Click Link |
GST Acts | Central GST Act and States GST Acts |
GST Rules | GST Rules |
GST Forms | GST Forms |
GST Rates | GST Rates |
GST Notifications | GST Act Notifications |
GST Circulars | GST Circulars |
GST Judgments | GST Judgments |
GST Press Release | GST Press Release |
GST Books | Best Books on GST in India |
GST Commentary | Topic wise Commentary on GST Act of India |
GST You Tube Channel | TaxHeal You Tube Channel |
GST Online Course | Join GST online Course |
GST History | GST History and Background Material |