The tweets received by CBEC twitter handle were scrutinized and developed into a short FAQ of 100 tweets. Questions / ...
The tweets received by CBEC twitter handle were scrutinized and developed into a short FAQ of 100 tweets.
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Questions / Tweets Received
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Replies
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Registration
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1.
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Does aggregate turnover
include value of inward supplies received on which RCM is payable?
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Refer Section 2(6) of CGST
Act. Aggregate turnover does not include value of inward supplies on which
tax is payable on reverse charge basis.
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2.
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What if the dealer migrated
with wrong PAN as the status of firm was changed from proprietorship to
partnership?
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New registration would be
required as partnership firm would have new PAN.
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3.
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A taxable person’s business
is in many states. All supplies are below 10 Lakhs. He makes an Inter State
supply from one state. Is he liable for registration?
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He is liable to register if
the aggregate turnover (all India) is more than 20 lacs or if he is engaged
in inter-State supplies.
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4.
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Can we use provisional GSTIN
or do we get new GSTIN? Can we start using provisional GSTIN till new one is
issued?
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Provisional GSTIN (PID)
should be converted into final GSTIN within 90 days. Yes, provisional GSTIN
can be used till final GSTIN is issued. PID & final GSTIN would be same.
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5.
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Whether trader of country
liquor is required to migrate to GST from VAT as liquor is out of GST law?
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If the person is involved in
100% supply of goods which are not liable for GST, then no registration is
required.
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6.
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Not liable to tax as
mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
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Not liable to tax means
supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please
refer to definition under Section 2(78) of the CGST Act.
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7.
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Whether civil contractor
doing projects in various states requires separate registration for all
states or a single registration at state of head office will suffice?
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A supplier of service will
have to register at the location from where he is supplying services.
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8.
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Whether aggregate turnover
includes turnover of supplies on which tax is payable by the recipient under
reverse charge?
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Outward supplies on which tax
is paid on reverse charge basis by the recipient will be included in the
aggregate turnover of the supplier.
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9.
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If there are two SEZ units
within same state, whether two registrations are required to be obtained?
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SEZs under same PAN in a
state require one registration. Please see proviso to rule 8(1) of CGST
Rules.
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10.
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Is an advocate providing
interstate supply chargeable under Reverse Charge liable for registration?
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Exemption from registration
has been provided to such suppliers who are making only those supplies on
which recipient is liable to discharge GST under RCM.
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11.
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When is registration in other
state required? Will giving service from Nasik to other state require
registration in other state?
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If services are being
provided from Nasik then registration is required to be taken only in
Maharashtra and IGST to be paid on inter-state supplies.
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12.
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I have migrated under GST but
want to register as ISD. Whether I can apply now & what is the procedure?
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A separate & new
registration is required for ISD. New registrations are being opened from
0800 hrs. on 25.06.2017.
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13.
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I have enrolled in GST but I
forgot to enter SAC codes. What should I do? The status is migrated.
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The same can be filled while
filing FORM REG-26 for converting provisional ID to final registration.
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14.
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I have ST number on
individual name and have migrated to GST.I wish to transfer this on my
proprietorship firm.
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This conversion may be done
while filling FORM REG-26 for converting provisional ID to final
registration.
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15.
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Please tell if rental income
up to 20 lacs attracts GST or attracts any other charge?
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GST is leviable only if
aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category
States). For computing aggregate supplies turnover of all supplies made by
you would be added.
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16.
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If someone trades only 0% GST
items (grains, pulses) then is it necessary to register for GST, if the
turnover exceeds
₹20 lacs? |
A person dealing with 100%
exempted supply is not liable to register irrespective of turnover.
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17.
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Is it correct that person
dealing exclusively in NIL rated or exempt goods/ services liable to register
if turnover > 20/10 Lakh?
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There is no liability of
registration if the person is dealing with 100% exempt supplies.
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18.
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If I register voluntarily
though turnover is less than 20 Lakhs, am I required to pay tax from 1st
supply I make post registration?
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Yes, you would be treated as
a normal taxable person.
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19.
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Whether a separate GSTIN
would be allotted to a registered person for deducting TDS (he has PAN and
TAN as well)?
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Separate registration as tax
deductor is required.
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20.
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Is separate registration
required for trading and manufacturing by same entity in one state?
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There will be only one
registration per State for all activities.
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21.
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I am registered in TN and
getting the service from unregistered dealer of AP, should I take
registration in AP to discharge GST under RCM?
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Any person who makes make
inter- state taxable supply is required to take registration. Therefore in
this case AP dealer shall take registration and pay tax.
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22.
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Is there any concept of area
based exemption under GST?
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There will be no area based exemptions
in GST.
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23.
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If a company in Maharashtra
holds only one event in Delhi, will they have to register in Delhi? Will
paying IGST from Maharashtra suffice?
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Only if
you provide any
supply from Delhi you
need to take
registration in Delhi. Else,
registration at Mumbai
is sufficient (and pay
IGST on supplies made from Mumbai to Delhi)
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24.
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How long can I wait to
register in GST ?
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An unregistered person has 30
days to complete its registration formalities from its date of liability to
obtain registration.
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25.
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What If I am not liable to
register under GST but I was registered under Service tax ?
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You can apply for
cancellation of Provisional ID on or before 31st July 2017.
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26.
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When turnover of agents will
be added to that of the principal for registration?
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No.
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27.
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If I am not an existing
taxpayer and wish to newly register under GST, when can I do so?
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You would be able to apply for
new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017
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Refund
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28.
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I have a pending export
refund in Service Tax. What will happen?
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Refunds under earlier laws
will be given under the respective laws only.
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29.
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As an exporter, how do I
ensure that my working capital is not blocked as refunds?
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Appropriate provisions have
been made in the law by providing for grant of 90% refund on provisional
basis within 7 days from filing of registration.
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Cess
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30.
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What will be the impact of
GST on coal? Will the clean energy Cess on coal go or will it stay?
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Clean Environmental Cess on
coal will be replaced by GST Compensation Cess.
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Composition Scheme
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31.
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Suppose I am in composition
scheme in GST. If I purchase goods from unregistered person, then GST will be
paid to Government by me or not?
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Yes, you will be liable to
pay tax on reverse charge basis for supplies from unregistered person.
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Customs
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32.
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What duties will be levied on
import of goods?
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Customs duty and cess as
applicable + IGST+ GST compensation cess. IGST and GST compensation cess
shall be paid after adding all customs duty and customs cess to the value of
imports.
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Exports
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33.
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Present Procedures have
Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will
apply?
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The export procedure for
Nepal would be same as that to other Countries.
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34.
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Are there exemptions for SEZ?
How will a SEZ transaction happen in GST regime?
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Supplies to SEZs are
zero-rated supplies as defined in Section 16 of IGST Act.
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35.
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How would the sale and
purchase of goods to and from SEZ will be treated? Will it be export / input?
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Supply to SEZs is zero rated
supplies and supplies by SEZs are treated as imports.
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36.
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Please clarify status of
international export freight under GST as the same was exempt under POPS
rules. It is zero rated in most countries.
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POS for transport of goods
determinable in terms of sec 12(8) or sect 13(8) of IGST Act, 2017, depending
upon location of service provider/service receiver. Exports are treated as
zero rated supplies.
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37.
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When goods are being imported
from SEZ who will pay IGST?
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Such supply is treated as
import and present procedure of payment of duty continues with the variation
that IGST is levied in place of CVD.
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38.
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Who will pay IGST when goods
are procured from SEZ? Today importer is paying both BCD and CVD.
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Such supply is treated as
import and present procedure of payment continues with the variation that
IGST is levied in place of CVD.
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Input Tax Credit
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39.
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Is SGST of Rajasthan charged
by supplier on purchase from Rajasthan can be utilize for payment of SGST in
Madhya Pradesh?
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SGST of one State cannot be
utilized for discharging of output tax liability of another State.
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40.
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How one can use SGST credit
for the payment of IGST on another state?
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SGST Credit can be used for
payment of IGST liability under the same GSTIN only.
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41.
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Can one State CGST be used to
pay another state CGST?
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The CGST and SGST Credit for
a State can be utilized for payment of their respective CGST/SGST liabilities
within that State for the same GSTIN only.
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42.
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In case of service supplied,
should the credit be given to the state where it is billed or the state it is
rendered?
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Tax will be collected in the
State from which the supply is made. The supplier will collect IGST and the
recipient will take IGST credit.
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43.
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Company is engaged in
manufacturing of cement & power. Which rule to be referred for reversal
of credit related to power business?
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Detailed rules for reversal
of ITC when the supplier is providing exempted and non-exempted supplies have
been provided in ITC Rules.
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44.
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How will the credit / debit
note from unregistered supplier be reported to GSTN and ITC claimed in the
same?
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Like invoice, credit/debit
notes on behalf of unregistered person will be given by registered person
only.
Further, GSTR2 provides for reporting of same by the recipient. |
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Invoice
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45.
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A shop sells taxable &
exempt products to the same person (B2C), is it required to issue tax invoice
and bill of supply separately?
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In such a case the person can
issue one tax invoice for the taxable invoice and also declare exempted
supply in the same invoice.
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46.
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Do registered dealers have to
record Aadhaar/PAN while selling goods to unregistered dealers?
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There is no requirement to
take Aadhaar / PAN details of the customer under the GST Act.
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47.
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All expenses like freight /
transport / packing which are charged in Sales Invoice are taxable in GST?
How to charge in bill?
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All expenses will have to be
included in the value and invoice needs to be issued accordingly. Please
refer to Section 15 of CGST Act and Invoice Rules.
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48.
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Can we move construction
material to builders on delivery challan and issue tax invoice post
completion of activity?
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If the goods are meant to be
supplied in the course of construction an invoice is necessary. If the goods
are tools which are to be used for construction then delivery challan should
be issued.
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49.
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How to treat following
transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer
gets less quantity and pays less.
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The supplier may issue credit
note to the customers and adjust his liability.
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50.
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Should we issue Self Invoice
for GST liability discharge on RCM or GST can be discharge through expenses
booking voucher?
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For RCM liabilities tax
invoice has to be issued on self.
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Returns
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51.
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What would be done on tax
paid on advance receipt if advance has to be refunded in any circumstance
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Advance refunded can be
adjusted in return.
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52.
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Do registered dealers have to
upload sale details of unregistered dealers also in GST?
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Generally not. But required
in case of inter-State supplies having invoice value of more than Rs 2.50
Lakhs.
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53.
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How to incorporate two
supplies in return for Pharma with same HSN code of four digits but having
different tax rates?
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Returns provide for
furnishing rate wise details.
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Supply
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54.
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Should we discharge GST
liability for all reverse charge having small amounts of Transaction or any
amount limit is there?
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It has been decided that Rs.
5000/- per day exemption will be given in respect of supplies received from
unregistered person. For supplies above this amount, a monthly consolidated
bill can be raised.
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55.
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What is treatment of
promotional item given free to end consumers by FMCG companies?
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Tax will be charged only on
the total consideration charged for such supply.
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56.
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How to comply with 9(4) of
CGST Act if POS is in another State of the unregistered supplier
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Any person making inter-state
supply has to compulsorily obtain registration and therefore in such cases,
section 9(4) will not come into play.
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57.
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Under supply from
unregistered dealer the purchaser have to pay GST on RCM basis.so whether
stipend paid to intern will also come under RCM?
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Stipend paid to interns will
be employer-employee transactions. Hence, not liable for GST.
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58.
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Salary by partnership firm to
Partners as per Income Tax Act liable to GST?
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Salary will not be liable for
GST.
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59.
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Sec 9(4) of CGST Act 2017. Do
I need to pay under RCM if I purchase stationary worth Rs.100 from an
unregistered stationery shop?
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It has been decided that Rs.
5000/- per day exemption will be given in respect of supplies received from
unregistered person.
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60.
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What is the treatment of
promotional item given free to end consumers by FMCG companies? If taxable,
whether ITC is allowed?
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Tax is payable on
consideration received for the supply.
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61.
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Whether GST will be leviable
in case of returnable packing material like drums supplied with finished
goods?
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GST will be levied on the
value charged for the supply only.
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62.
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How will disposal of scrap be
treated in GST?
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If the disposal is in the
course or furtherance of business purposes, it will be considered as a
supply.
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63.
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I am from MP and providing
service to a customer in Maharashtra. I outsource the work to a service
provider in Maharashtra, what tax i need to charge?
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Generally these will be two
supplies where the supplier from MP will charge IGST from the recipient in
Maharashtra. Whereas, the service provider in Maharashtra will charge IGST
from the recipient in MP.
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64.
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If address of buyer is Punjab
and place of supply is same state of supplier (Rajasthan), then IGST will
apply or CGST/SGST?
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If the place of supply and
the location of the supplier are in the same State then it will be
intra-State supply and CGST / SGST will be applicable.
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65.
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Why is bifurcation of cash
deposit as CGST-SGST-IGST required? Is cash held against a GSTIN, to be
adjusted via return u/s 39
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Three levies are under three
different statutes and are required to be separately accounted for.
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66.
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What is the difference in
between 'Nil rated', 'taxable at 0%' and exempted goods and services?
Especially in relation with ITC
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Exempt supply includes Nil
rated (taxable at 0%) and non-Taxable supplies and no ITC is available for
such supplies.
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67.
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Will professional tax will be
abolished in Maharashtra after introducing of GST?
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Professional tax is not a tax
on supply of goods or services but on being in a profession. Professional tax
not subsumed in GST.
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68.
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Employer provides bus
service, meal coupon, telephone at residence, gives vehicle for official and
personal use, uniform and shoes, any GST?
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Where the value of such
supplies is in the nature of gifts, no GST will apply till value of such
gifts exceeds Rs. 50000/- in a financial year.
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69.
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The definition of composite
supply and the description of same under Section 8 differ. Please explain
consequences.
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Section 2(30) defines what
will be considered as a composite supply. Whereas, Section 8 provides that in
case of a composite supply, the treatment for tax rate etc. will be that of
principal supply.
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70.
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Whether slump sale will
attract GST. If yes then under which Section?
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It will have the same
treatment as normal supply.
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71.
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Salary by Partnership firm to
Partners as per Income Tax Act liable to GST? Partners are not employees of
the firm.
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Salary will not be leviable
of GST.
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Transition
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72.
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How do I avail transition
credit ?
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Transition credit can be
availed by filing the respective forms under Transition rules upto
30.09.2017.
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73.
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Please provide the clarity on
area based exemption 50/2003 in UK & HP.
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Area based exemptions will
not be continued under GST. It will be
operated through the route of reimbursement as prescribed.
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74.
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We manufactured excisable
goods. But unit availed the exception benefits 50/2003. What about my dealers
stock?
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The dealer will get deemed
credit @ 40% / 60% of the CGST paid on supply of such goods in GST. If the
goods are branded and greater than Rs. 25,000, full credit using CTD can be
availed.
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75.
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A trader buys from
manufacturer not registered in excise as his turnover is below 1.5cr. Then in
such case can trader take ITC on stock up to 40%?
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Yes deemed credit will be
available subject to satisfaction of other conditions as prescribed.
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76.
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I am a trader. I have excise
paid purchase invoice. Whether I can claim credit of full excise duty on
closing stock of 1st July 2017
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Full transition credit of
such duty will be available on stock in hand in respect of which you have
duty paying excise document subject to conditions under Section 140(3) of the
CGST Act.
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77.
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If a trader purchases
directly from manufacturer & has documents showing excise, will he get
full excise credit or 40% of CGST?
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Full transition credit of
such duty will be available on stock in hand in respect of which you have
duty paying excise document subject to conditions under Section 140(3) of the
CGST Act.
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78.
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If a fsd purchases directly
from manufacturer and has value cum excise duty and excise duty is not
separately shown will he get full credit?
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Full transition credit of
such duty will be available on stock in hand in respect of which you have
duty paying excise document subject to conditions under Section 140(3) of the
CGST Act.
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79.
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Is the full excise credit
also available to traders who purchases directly from manufacturers and
excise is separately shown in invoice?
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Full transition credit of
such duty will be available on stock in hand in respect of which you have
duty paying excise document subject to conditions under Section 140(3) of the
CGST Act.
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80.
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In June 17 Vat return no
amount carried forward & held stock of Rs. 50 lakhs. Then can we take
credit of that stock or not?
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The supplier would be
eligible to carry forward the closing balance of ITC from VAT return for June
17.
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81.
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What will be the impact of
closing stock which has been already paid vat on 1st July?
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The supplier would be
eligible to carry forward ITC on such stock from VAT return for June 17.
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82.
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If in Vat return refund
claimed in June 17 & no balance credit in GST. Then what's the position
of submission of Form C
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Refund claimed under existing
law will be handled as per the provisions of the existing law. Form C to be
submitted in terms of provision of Rule 1(1) of Transition Rules.
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83.
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Some service was provided on
28.06.2017 but Invoice will be raised on 05.07.2017. Whether we have to
charge Service Tax or GST?
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If Point of Tax arises after
appointed date, then GST will be chargeable on such supply.
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84.
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Would we be eligible for
credit on Capital Goods in transit and received post GST?
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No provision for such credit
is there in GST law.
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85.
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What about VAT balance
pending on transition date?
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Balance VAT credit in the
return will be transferred to new provisional ID as SGST Credit.
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86.
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What about deemed export
against Form H?
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Form H will not be there in
GST.
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87.
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Who will bear tax difference
on closing stocks as on 30th June 2017? Whether the manufacturer/dealer or
government?
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Closing ITC in VAT return
will be allowed to be carry forward in GST.
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88.
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How will we get input credit
on stock in hand for spare parts billed from other state, excise, CST and
entry tax paid?
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For all inputs with duty
paying documents available respective CGST / SGST credit will be available.
But credit of CST will not be available.
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89.
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A trader buys from
manufacturer not registered in excise as his turnover is below 1.5 crore.
then in such case can traders take ITC on stock up to 40%
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Deemed Credit will be
available on stock in hand provided the conditions of section 140(3) read
with Rule 1(4) of Transition Rules are satisfied.
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90.
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Whether we will be eligible
for credit of duty paid on Capital Goods in transit and received post GST?
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No such provision in GST.
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91.
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Can ITC of Swach Bharat Cess
or Krishi Kalyan Cess be carried forward under GST?
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No
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92.
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Will Clean Energy CESS on
imported Coal @ Rs. 400 PMT continue to be applicable in GST?
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No. Clean Energy Cess is
being repealed. Coal, however, will be subject to compensation cess @ Rs
400/- per tonne.
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93.
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Whether closing balance of
edu cess and secondary higher education cess prior to 1st Mar 2015 can be
carried forward in GST?
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No it will not be carried
forward in GST as it is not covered by definition of “eligible duties and
taxes” under Section 140 of the CGST Act.
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94.
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Can u clarify for 40℅ benefit
on closing stock does 1 year
limit apply or not ? |
Deemed credit will be
available for all stock procured within a 1 year period.
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95.
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Till what time is transition
credit available? Where do I need to declare my input stock?
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The window to declare
transition credit forms is three months from the appointed day. Please refer
to transition rules for more details.
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UTGST
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96.
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Will there be GST in A&N
Islands as previously there was no VAT
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Yes. For supplies within
A&N, CGST plus UTGST would be leviable.
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Others
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97.
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Whether IGST would be levied
twice on high seas sales? First on high seas sales and second on custom
clearance. IGST paid on 1 available as ITC?
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IGST shall be levied only
once on imports.
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98.
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Will Krishi Mandi Fee
(imposed in U.P.) be waived off in GST?
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GST does not concern such fee
so GST does not affect it.
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99.
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Is E-Way Bill applicable from
1st July 2017
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The present system for E-way
Bill in States to continue, till the E-Way Bill procedures are finalized.
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100.
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Is there a sunset clause for
Anti-Profiteering law?
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Yes, the sunset clause for
Anti- profiteering Authority is of two years.
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COMMENTS