Liability of Partner: Retirement of the partner
Firm has to apply for the amendment in GST Registration in REG-14. Further firm or retiring partner shall be liable to intimate the date of retirement of the said partner to the Commissioner by a notice in that behalf in writing. It may be noted that there is no specific form for such intimation.
Liability of Partner: GST Dues of LLP to be paid by Partners
As per Section 27(4) of LLP Act, 2008 the liabilities of the limited liability partnership shall be met out of the property of the limited liability partnership. But as per section 90, notwithstanding any contract to the contrary and any other law for the time being in force, where any firm is liable to pay any tax, interest or penalty under this Act, the firm and each of the partners of the firm shall, jointly and severally, be liable for such payment. As per Explanation to section 94 of CGST Act (applicable for section 90 also), a "Limited Liability Partnership" formed and registered under the provisions of the Limited Liability Partnership Act, 2008 shall also be considered as a firm. Therefore, even though partner of LLP shall be liable for payment of GST dues of the firmwhen LLP could not pay the said dues.
GST on Construction Contract
The few contracts are labour contracts and few contracts cum material contracts. What is the GST treatment on such income?
It may be noted that only pure labour contract of construction of original works pertaining to a single residential unit is exempted under GST. It is clear that labour cum material construction contracts are not exempted.
Applicability of GST on stay charges of hostel
Services provided by an educational institution to its students, faculty and staff are exempted vide N/N 12/2017-CT(R).
Here the meaning of educational institution is given as below:
"educational institution" means an institution providing services by way of,—
- (i) pre-school education and education up to higher secondary school or equivalent;
- (ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;
- (iii) education as a part of an approved vocational education course;
If the said institution is covered under the definition of educational institutions, then hostel stay charges is exempted under GST.
Applicability of GST on Rent income on commercial property by the trust
Renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under section 12AA or 12AB of the Income-tax Act, 1961 is exempted vide N/N 12/2017-CT(R) if renting of shops or other spaces for business or commerce where charges do not exceed ten thousand rupees or more per month.
HSN reporting for QRMP
As per instruction to GSTR 1, it will be mandatory to specify the number of digits of HSN code for goods or services that a class of registered persons shall be required to mention as may be specified in the notification issued from time to time under proviso to rule 46 of the said rules.
Vide Notification No. 78/2020 – Central Tax dated 15th October 2020, it is mandatory for the taxpayers to report a minimum 4 digit (Where the aggregate turnover of registered person in the preceding Financial Year is upto 5 Cr) or 6 digit of HSN Code (Where the aggregate turnover of registered person in the preceding Financial Year is more than 5 Cr).
As per NOTIFICATION NO. 84/2020-CENTRAL TAX [G.S.R. 700(E)/F. NO. CBEC-20/06/04/2020-GST], DATED 10-11-2020, QRMP can be opted only by registered persons having an aggregate turnover of up to five crore rupees in the preceding financial year.
Therefore, it can be construed that registered person who has opted for QRMP has to report 4 digit HSN in table 12 of GSTR 1.
Kindly refer the GSTN advisory for detailed reading (Refer : Implementation of mandatory mentioning of HSN codes in GSTR-1)