Common credit reversal for registered person operating hotel and restaurant business
The ITC of input and input services is required to be reversed in the proportion of the aggregate value of exempt supplies during the tax period (Say, E) and total turnover in the State of the registered person during the tax period (Say, F).
Where the registered person does not have any turnover during the said tax period or the aforesaid information is not available, the value of 'E/F' shall be calculated by taking values of 'E' and 'F' of the last tax period for which the details of such turnover are available, previous to the month during which the said value of 'E/F' is to be calculated.
Merely by saying that there was no turnover in the particular month, the registered person can not take the clue of non-reversal of common credit. Further, the reversal amount is subject to yearly computation as well.
Payment in Instalments
As per the law, the amount due as per the liability self-assessed in any return can not be paid in the instalments. Liability declared in GSTR 1 is not the liability self-assessed in return. Therefore Radha & Co. LLP can file the application in DRC-20 seeking an extension of time for the payment of taxes or any amount due under the Act or for allowing payment of such taxes or amount in installments in accordance with the provisions of section 80.
Penalty on wrong classification
If it is the case of applicability of section 73, then it is not correct to demand the penalty.
It has to be established that tax has been short-paid for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax.
Price inclusive of tax or exclusive of tax
Here agreement value is the transaction value that is subject to tax and can not be treated as inclusive of tax.
Krishna Ltd. is liable to pay the tax on INR 10 Cr and it can not be treated as inclusive of GST.