AAAR okays GST on inter-state office services

The Authority for Advance Rulings held that the employer-employee relationship in the corporate office exists only there and not with other office units even if they are part of the same legal entity, as far as the GST law is concerned.
Akarsh Phanindra

Last Updated: Jan 01,2019 09:00 IST

AAAR okays GST on inter-state office services

01 January 2019 Current Affairs: Karnataka Appellate Authority for Advance Rulings (AAAR) upheld the levy of goods and services tax on services rendered by one office branch to other branches of the same company located in different states.
In its ruling which will affect the companies with a presence in multiple states, the AAAR said that in-house service functions such as human resources and payrolls, if carried out from a centre in one state for offices in other states, will attract GST for which it will have to issue an invoice.
The decision will add the transaction costs and compliance burden for the companies with offices in many states, even though the tax paid can be adjusted against their final GST liability.
The companies that deal in goods or services that are exempt from GST such as healthcare and education, and petroleum and liquor companies, which are out of the ambit of the tax will not have the option of adjusting the tax paid on in-house transfers.
Free Current Affairs to Your Email

Daily Current Affairs 2019



Subscribe to Current Affairs

Enter your email to get daily Current Affairs
Current Affairs PDF

Current Affairs 2019 December

December 15
News Quiz
December 14
News Quiz
December 13
News Quiz
December 12
News Quiz

Current Affairs 2019 November

November 30
News Quiz
November 29
News Quiz
November 28
News Quiz
November 27
News Quiz

Current Affairs 2019 October

October 31
News Quiz
October 30
News Quiz
October 29
News Quiz
October 28
News Quiz