Mr. Babu Lal borrows an amount of ₹1,50,000 from one of his relatives Mr. Shyam Lal and agrees to repay the entire amount of ₹1,50,000 after a year.
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2019
Mr. Babu Lal borrows an amount of ₹1,50,000 from one of his relatives Mr. Shyam Lal and agrees to repay the entire amount of ₹1,50,000 after a year.
Answer & Explanation:
The activity of borrowing from a relative is without any charge of interest and hence it will be considered as merely a transaction in money and shall not be treated as supply.
Topics: CGST Act, 2017
Related Questions in this Topic
- Vivitha Chemicals Ltd. is a manufacturing company registered under GST in the State of Tamil Nadu. It manufactures two t...
- Can a person who has opted to pay tax under the Composition Scheme avail Input Tax Credit on his inward supplies?
- Can a person paying tax under the Composition Scheme issue a tax invoice under GST?
- Explain by giving brief reasons in the context of provisions contained under the CGST Act, 2017 pertaining to compositio...
- There are separate valuation provisions for goods and services under the CGST, SGST and IGST provisions. Examine the cor...