Goods and Service Tax (GST) would not apply on credit card and telephone bills before generated before June 30, even if the payment is due in July, Revenue Secretary Hasmukh Adhia clarified on Saturday.
“If the bill is generated before July, then a consumer will have to pay the 15% service tax only,” he said.
The same will be applicable for Insurance premiums, traders or vendors of manufacturers, who had received delivery of products in the month of June and the invoice has been created in the same month.
“In India, most of the businesses are done in one or two month credit,” Adhia told ANI.
Clearing the confusion regarding the inter-state trade, Adhia clarified that that registration has to be done from the state where the goods are being sent from, not the state that is receiving the goods or services.
Commenting on the reverse taxation, Adhia clarified that in case of online transport aggregators such as Uber, Ola, registration needs to be done by the company and not by the taxi drivers individually.
In addition, electronic commerce operators will also have to register themselves, he said.
However, those dealing with the sale of items that exempted from the new tax regime are not required to register, Adhia said.
Stressing on the importance of registration, Adhia said the process can be done with a PAN card.
“Only one registration number will be provided against a PAN card. Any modification of a business such as its name, address of business, addition or deletion of partners can be modified only by tax authorities,” he said.