Frequently Asked Questions (FAQs) on GST Law and procedures
GST
Dated:- 13-10-2026
Frequently Asked Questions (FAQs) on GST Law and procedures
FAQ on GST registration application
S. No.
Question
Answer
1.
How can I submit an application for GST registration?
You can submit the application for GST registration online on the GST portal (https://www.gst.gov.in/) through Services → Registration → New Registration.
2.
Where can I find the step- by-step procedure for filing the GST registration application?
1. A step-by-step manual/tutorial for filing the GST registration application is available on the GST portal. (https://www.gst.gov.in/) through Help and taxpayer facilities → GST Knowledge Portal → Register with GST.
2. The application form on the portal also provides tool- tips and real-time contextual guidance to help applicants furnish the required information correctly.
3. Further the amended GST registration FORM R
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-down menus and guidance pop-ups in respect of documents required to be submitted.
4.
Is there a checklist of documents and information required for filing the GST registration application?
Yes. The same shall be clarified through a circular, specifying the information and documents required for filing the registration application so that applicants can keep the required information and documents ready before submitting the application.
5.
What documents are required as proof of Principal Place of Business (PPoB))?
A consolidated list of documents required as proof of PPoB and APoB in different situations shall be provided in the circular and FORM GST REG-01, shall be suitably amended. Accordingly, when an applicant selects the type of premises on the GST portal, the portal will display only those documents that are relevant to that particular type of premises say owned or rented premises shall show different document requirements. No additional documents are required
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er, for GST registrations other than those obtained under Rule 14A of CGST Rules, 2017, any amendment in PPoB would continue to be considered core amendment and would require approval of the officer.
2.
How can I change the legal name of my business?
You need to submit an application in FORM GST REG-14 on the common portal. After successful submission of application on the common portal and on successful validation of PAN details furnished by you, the legal name will be amended by the system.
3.
How can I add an Additional Place of Business (APoB) to my GST registration?
You need to submit an application on the common portal in FORM GST REG-14, along with the required documents as proof of the place of business, as specified in the list attached to FORM GST REG-01. The application will be processed automatically by the system and the APoB details will be added in the registration of the applicant.
4.
I have taken registration under simplified registration scheme
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within 15 days from the date of application.
ii. If there is a discrepancy in the PPoB application, the proper officer shall issue a show-cause notice within 15 days from the date of application. The applicant must reply within 7 working days from the date of issue of the notice.
iii. After receiving the reply, the officer shall to take action within 7 working days.
6.
I wish to add multiple additional places of business in my registration details. Do I need to wait for approval of my earlier application before filing a new amendment application?
Since amendment to additional place of business will be accepted automatically by the system, there would not be any waiting required.
FAQ on cancellation of GST registration
S.No.
Question
Answer
1.
I am registered under GST. In what circumstances can I apply for cancellation of my GST registration?
Cancellation of GST registration can be applied for in the following circumstances:
€
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e (DSC) or Electronic Verification Code (EVC) and submit the form
2. Once submitted, an ARN (Application Reference Number) will be generated. You can track the status on the portal.
3.
Is there any specific time limit in which I should apply for cancellation of my GST registration?
1. Yes, you should file an application for cancellation of your registration within 30 days of occurrence of event warranting cancellation of your registration.
2. However, in the event of death of a sole proprietor, there is no such time limit for filing application of cancellation of registration.
4.
What are the conditions which need to be fulfilled for enabling auto- acceptance of my application for cancellation of registration?
The following conditions need to be satisfied for the auto-acceptance of application for cancellation of registration viz; –
i. Furnishing of all the returns due for filing on or before date of application for cancellation.
ii. Payment of
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ion of registration in FORM GST REG-16 along with the final return in FORM GSTR-10, your application would be processed on an automated basis, by the system.
2. In Phase-2, you just need to file the application in FORM REG-16 and the system will process the application.
7.
My registration has been suspended by the system on the portal, as I have not filed return for consecutive period of six months, I fail to file the pending return within one month of such suspension, whether my registration will be cancelled?
1. In cases where registration has been suspended by the system on account of non-compliances such as non-filing of returns for consecutive six months or non-furnishing of bank account as required under rule 10A of CGST Rules, section 29 is being amended to provide for registration to be cancelled by the system, without intervention of officer.
2. Further, on compliance of the said non-compliances and filing of application for revocation by the taxpayer in FORM GS
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supplying goods through electronic commerce operators (ECOs)?
The Simplified Registration Mechanism for small sellers on the electronic commerce operators' platform is an optional registration scheme for such suppliers, inter alia, with the following features:
• Sellers intending to pass ITC less than Rs. 2.5 lakh in a month (excluding stock transfer) can declare ECO's warehouse as their principal place of business (PPoB) in the State/UT in which they do not have physical presence.
• Mandatory biometric based Aadhaar authentication and physical verification in their home State.
• Registration under this scheme shall be used for supplying goods exclusively through ECO's platform.
• Single registration against a PAN can be obtained in a State/UT.
• Registration to be sought on prior concurrence from ECO for declaring it's warehouse as PPoB.
2.
What conditions must be fulfilled to obtain
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rule 14B of CGST Rules, 2017.
• You must declare the GSTIN obtained against the same PAN in your home-State.
• You must provide the address and particulars of the warehouse of the ECO, which is to be declared as the Principal Place of Business in that State or UT and you must also provide details of any other ECO warehouses in that State or Union territory to be declared as Additional Places of Business (APoB).
• He must have regular registration other than the under this scheme or rule 14A of CGST Rules, 2017.
4.
How will my application be processed under the scheme?
• The application will be forwarded to the concerned ECO, whose warehouse is declared to be used as PPoB in that State/UT, or APoB, for consent within 7 working days.
• On receipt of consent, the application will be forwarded to the jurisdictional officer of the home State for biometric-based Aadhaar authentication, photograph and ve
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n the ECO's consent to have his warehouse registered as the PPOB or APOB of the seller in the concerned State. Thus, in case consent is not given by the ECO, the application of the seller will be deemed to be rejected.
7.
I have obtained registration under rule 14A of the CGST Rules, 2017. Can I obtain registration under the simplified registration scheme for sellers supplying goods through ECOs in another State or Union territory?
If you have obtained registration in the home State only under rule 14A of CGST Rules, 2017 and intend to obtain registration under the scheme under rule 14B of CGST Rules in another State or Union territory, you must first submit a withdrawal application in FORM GST REG-32 to withdraw from the option under rule 14A in the home State before applying for registration in another State/UT under this scheme under rule 14B.
8.
Can I withdraw from the scheme?
Yes. A person registered under this scheme under rule 14B may withdraw from the opti
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Principal Place of Business in the home State for each registration obtained in different States or Union territories against the same PAN.
• He will be required to submit the same when demanded by the proper officer of the state where he has obtained registration under Rule 14B.
• Where the ECO withdraws his consent, the registered person must submit FORM GST REG- 14, within 30 days of the ECO's intimation of withdrawal of consent, to change the Principal Place of Business or Additional Place of Business, as applicable, in that State/UT.
11.
What are the obligations of an electronic commerce operator under the scheme?
• The registration application made under the scheme will be forwarded on the common portal to the ECO for his consent to permit his warehouse to be declared as the Principal Place of Business or Additional Place of Business in that State/UT. ECO must take a decision on the same within 7 working days from the date of
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ny registrations can I obtain in a State or Union territory under the scheme?
Under this scheme, a single registration can be obtained against a PAN in a State or Union territory.
14.
Do I need to display my GST registration certificate and GSTIN at the ECO warehouse?
No. A person registered under this scheme is not required to display the registration certificate and GSTIN on the name board at the ECO warehouse.
FAQs on Refunds
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Question
Answer
1.
What are the key changes being introduced in the refund mechanism?
• The existing refund mechanism is being modified to provide for time-bound and automated processing of refund claims in specified categories on the basis of risk analysis by the system, so as to enhance ease of doing business, improve transparency and expedite the processing of refund claims to ease the working capital requirement of the taxpayers. The changes are being introduced in 2 phases as per readiness of the system.
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application. However, in case the validation failure reoccurs, the application may be forwarded to the proper officer for scrutiny and processing.
• Further, in case of low-risk zero-rated supply refund claims, final refund shall also be automatically given by the system.
2.
Which categories of refund are eligible for automated provisional refund?
Refund of unutilized ITC for low-risk refund claims pertaining to zero-rated supplies or inverted duty structure are eligible for automated provisional refund.
3.
How does automated provisional refund differ from the earlier provisional refund process?
In case of low-risk refund claims on account of zero-rated supplies and inverted duty structure, after the issuance of acknowledgement, 90% of the claimed amount will be sanctioned provisionally by the system on an automated basis, without the intervention of tax officer.
4.
Are there any exclusions to sanction of provisional refund in respect of refun
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ere any restriction on refund of unutilized ITC on account of inverted duty structure refund claims?
Yes. Refund shall not be allowed on account of inverted duty structure in respect of goods notified vide notification No. 5/ 2017-Central Tax (Rate) dated 28.06.2017 (as amended).
Further, statutory restrictions on sanction of refund will be applicable in terms of sub-section (10) and (11) of section 54 of the CGST Act, which inter alia provide for withholding of refund where the refund order is subject to any appeal or other proceedings through linkages with relevant modules.
6.
What will be the role of officer in the processing of refund application?
In Phase I, the officer shall issue acknowledgement within 10 days of receipt of application after checking for its completeness. In case he finds any discrepancy in the documents, a deficiency memo in FORM RFD- 03 may be issued to the claimant intimating such deficiency. While the provisional refund in the acknowledged cas
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med amount on a provisional basis. This will be fully system-driven and there will be no officer interface at this stage.
8.
What is the revised timeline for issuing the provisional refund order?
The provisional refund order in FORM GST RFD-04 is proposed to be issued within three working days by the system from the date of acknowledgement.
9.
How would a low-risk refund claim be processed subsequent to automated provisional refund?
Once the system grants provisional refund in a low-risk refund application, the application shall move to the proper officer for scrutiny and issuance of final refund order in FORM GST RFD-06.
10.
What happens if a refund application is not classified as low-risk?
If a refund application is not classified as low- risk, it shall be scrutinized by the proper officer after acknowledgement, for the purpose of sanction of provisional refund (in case of refund claims on account of zero-rated supplies and inverted duty structure) and sub
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ter deemed acknowledgement?
No. Deemed acknowledgement only means that the refund application is treated as received and complete for the purpose of starting the processing timeline. Further processing of the refund application shall be done as per the risk-based framework and applicable provisions.
14.
What is the process to be followed in cases where a refund application is found to have deficiencies?
1. In refund applications which are found to have deficiencies, proper officer issues a deficiency memo in FORM GST RFD-03. After a deficiency memo has been issued, the refund application would not be further processed, and a fresh application would have to be filed by the applicant on the portal.
2. Any amount of input tax credit/cash debited from electronic credit/ cash ledger at the time of filing of refund application would be re-credited automatically once the deficiency memo has been issued.
3. The applicant is required to rectify the deficiencies highlighted in
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by the system based on risk evaluation, with the payment order issued in FORM GST RFD-05. Thereafter, the refund application will be processed by the tax officer for issuance of final refund order.
18.
How will my refund of excess balance in the electronic cash ledger be processed now?
Refund of excess balance in the electronic cash ledger will be processed in a fully automated manner by the common portal itself.
19.
Will there be any role of the officer in refund of excess cash balance in electronic cash ledger?
No. Such a refund will be processed without requiring any intervention by a tax officer.
20.
Will I be able to file my refund application if I have not yet filed my GST return?
Before filing a refund application, it must be ensured that all returns that are due to be filed on or before the date of the refund application have in fact been filed by the registered person. For example, if refund application is being filed on the 3rd of April, 2026 the r
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ed in para 36 of circular No. 125/44/2019-GST dated 18.11.2019, there is no need to submit invoices (either original or duplicate) along with the refund claim.
24.
Will my shipping bill and export payment details be verified automatically?
Yes. In Phase II, for refunds on account of zero- rated supplies, the system will be integrated with ICEGATE (for shipping bill and bill of export details), with EDPMS of the RBI (for realisation of export proceeds for services), and with SEZ Online (for supplies made to SEZ units or developers), so that these details can be verified electronically rather than through manual checks.
25.
What if my application does not pass the system's validation?
You will be informed of the specific errors so that you can rectify them and file a fresh application. If validation is still unsuccessful after correction, your application will be forwarded to the proper officer for scrutiny and processing, so that processing of your claim continues
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nt must ensure that any reversal of input tax credit required under rule 42 or rule 43 of the CGST Rules, 2017 is carried out as prescribed under the said rules.
27.
Will I get interest if my refund is withheld under section 54(11) and I later become entitled to it? From when and till which date will this interest be calculated?
Yes. Where a refund is withheld under section 54(11) and the applicant subsequently becomes entitled to it as a result of appeal or other proceedings, interest is payable at the rate of 6%. The interest will be computed for the period starting from the date the refund was withheld till the date the refund is actually paid.
28.
Is there a minimum amount below which refund is not paid?
Yes, a threshold of Rs.1,000 continues to apply below which refund is not paid.
The threshold of Rs. 1,000 will be applied with reference to the total refund amount payable across all tax heads taken together, rather than separately for each individual tax head
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of inward supply of input services and capital goods
S.No.
Question
Answer
1.
What is the change being proposed in respect of refund of unutilised input tax credit (ITC) on input services and capital goods?
At present, under rule 89 of the CGST Rules, 2017, “Net ITC” excludes ITC availed on capital goods in the case of refund of unutilized ITC on account of zero-rated supplies made, and excludes ITC availed on both input services and capital goods in the case of refund on account of inverted duty structure. It has now been recommended by the GST Council to:
i. include ITC availed on input services (availed on or after 01.11.2026) in “Net ITC” for computation of refund on account of inverted duty structure under rule 89(5) of the CGST Rules, 2017; and
ii. include ITC availed on capital goods (availed on or after 01.04.2027) to the extent attributable to the relevant period, in “Net ITC” for computation of refund on account of zero-rated supplies under
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of the refund amount. The proposal does not expand the class of persons eligible for refund under clause (ii) of the first proviso to section 54(3) of the CGST Act, 2017.
For instance, the following two scenarios can be considered to understand the difference:
Case A: A manufacturer procures inputs taxed at 18% and makes output supplies taxed at 5%. He also avails ITC on input services such as professional services taxed at 18%. As the rate of tax on inputs is higher than the rate of tax on output supplies, inverted duty structure exists. ITC on input services availed on or after 1st November, 2026 shall be included in “Net ITC” for computation of refund.
Case B: A supplier procures inputs taxed at 5% and makes output supplies taxed at 5%, but avails input services taxed at 18%. As there is no inversion between the rate of tax on inputs and the rate of tax on output supplies, the supplier is not eligible for refund on account of inverted duty structure merely because the rate
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will only be available in respect of such ITC on capital goods available on or after 01.04.2027. This releases capital locked up in capital- intensive sectors while distributing the revenue outgo over a longer period.
6.
How will the ITC on capital goods attributable to the relevant period be computed?
Capital goods attributable to the relevant period are those capital goods on which ITC has been availed on or after 1st April, 2027, in any of the months not earlier than fifty-nine months from the last month of the relevant period. ITC on such capital goods shall be calculated as per the formula prescribed in Rule 89.
7.
Which ITC on capital goods can be included in the refund claim?
Only eligible ITC availed on capital goods can be included. ITC blocked under section 17(5) of the CGST Act, 2017, or otherwise not admissible, cannot form part of the claim. Further, any reversal of ITC required under the Act or the Rules in respect of such capital goods, including under
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ount of tax involved under CGST, SGST/UTGST, IGST and cess, as applicable. It is not necessary for the amount under each individual tax head to independently meet the threshold of Rs.10,000.
3.
Will interest, late fee or penalty be taken into account for determining the minimum threshold of Rs.10,000 under sections 73, 74 or 74A of the CGST Act, 2017?
No. The minimum threshold of Rs.10,000 shall be determined with reference to the amount of tax including the applicable cess. Interest, late fee and penalty shall not be included for determining whether the threshold is met.
4.
Will the minimum threshold of Rs.10,000 for issuance of demand notices, apply in cases involving input tax credit wrongly availed or utilised?
Yes. The amount of tax relating to input tax credit wrongly availed or utilised, shall be taken into account for determining whether the minimum threshold of Rs.10,000 is met. Where such amounts arise under more than one tax head, the relevant amounts shall
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ision shall be referred to as “charge” under the amended provision.
3.
Under which head the amount payable as “charge” should be deposited?
The amount payable as “charge” shall be deposited under the head “Others”, in accordance with the prescribed payment mechanism
FAQs on reforms related to rationalization of interception and verification of goods and conveyances in transit (e-way bill)
S. No.
Question
Answer
1.
Can a conveyance be intercepted on a random basis to verify the e-way bill after the proposed amendment?
No. A conveyance may be intercepted only on the authorisation of a proper officer not below the rank of Joint Commissioner, who has reasons to believe, to be recorded in writing, that the goods being carried in the conveyance are being transported in contravention of the provisions of the CGST Act, 2017 or the rules made thereunder.
2.
Officers cers of v which jurisdiction can inspect, detain or seize goods and conveyances in transi
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a State or Union territory where neither the supplier nor the recipient is located shall not undertake any inspection, detention or seizure of the goods or the conveyance.
He shall allow the conveyance and the goods to pass through unhindered and shall transmit the information, to the officer having jurisdiction over the supplier or the recipient, as the case may be.
For example, goods moving from State A to State B are intercepted in State C, and an incorrect HSN is noticed in the e-way bill. The officer of State C shall allow the vehicle to proceed and transmit the information to the jurisdictional officer of State A or State B.
4.
Where no information relating to the consignment has been furnished electronically (i.e. no e-way bill has been generated), or conveyance is not carrying the prescribed documents, can an officer detain or seize goods in transit irrespective of where the supplier or recipient is located?
Yes. Where no information relating to the consignment
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ied under section 68.
FAQs on Rationalization and Decriminalization of Arrest and Prosecution Provisions in GST
S. No.
Question
Answer
13.
What changes have been recommended by the GST Council in respect of arrest and prosecution provision under GST?
The GST Council has recommended:
• removal of the arrest provisions under GST;
• increase in the threshold for prosecution from Rs. 1 crore to Rs. 5 crore;
• omission or narrowing of certain offences under section 132(1) of the CGST Act, and redrafting of clause (c) thereof;*
• rationalisation of the maximum term of imprisonment from three or two years in case of tax evasion of more between Rs 5 to Rs 10 Crore; and
• discretion to the Court to impose only a fine, and removal of the minimum imprisonment of six months.
14.
Can someone be arrested under GST after the proposed amendment?
No. The arrest provisions under GST are now p
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nged from “imprisonment and fine” to “imprisonment or fine or both”, so that the Court may have discretion of awarding punishment.
Further, the requirement of a minimum imprisonment of six months under section 132(3) is being removed, so as to confer discretion on the Court.
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Which offences are being omitted or narrowed for the purpose of prosecution?
• Clause (i) of section 132(1), relating to supply of services in contravention of the Act, is being omitted, as the offence is difficult to quantify and liable to subjective interpretation.
• Clause (e) of section 132(1): the expression “evades tax” is being omitted, so that the clause is confined to fraudulently obtaining refund.
• Clause (h) of section 132(1): the expression “or in any other manner deals with” is being omitted, leaving only the specific acts listed in the clause.
FAQ in respect of reforms for enhancing export competitiveness
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sea-weed extract based bio-stimulants?
57th GST Council has clarified that sea-weed extract based bio-stimulants, registered under Schedule VI to the Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985 are classifiable under heading 3101 as fertilisers (vide S. No. 237 of Schedule I of Notification No. 9/2025-Central Tax (Rate), dated 17.09.2025). GST council has also recommended to regularise the past cases on “as is where is” basis.
2. Are all sea-weed extract based products classifiable under S. No. 237 of Schedule I of Notification No. 9/2025-Central Tax (Rate), dated 17.09.2025?
No. All sea-weed extract based products are not classifiable under S. No. 237 of Schedule I of Notification No. 9/2025-Central Tax (Rate), dated 17.09.2025. Only those sea-weed extract based bio-stimulants that are registered under the Fertiliser Control Order, 1985 are classifiable under the said entry.
3. Whether sea-weed extract based products containing Plant Growth Regulators (P
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nd scooters which are mentioned in the notification.
5. Are second-hand car dealers barred from availing the concessional rate of GST under the GST margin scheme if they avail ITC on repair and maintenance services, spares, etc. used in the course of business?
No. Benefit of concessional rate of GST under GST margin scheme vide notification No. 8/2018-Central Tax (Rate), notification No. 9/2018-Integrated Tax (Rate) and notification No. 1/2018-Compensation Cess (Rate), all dated 25.01.2018, for supply of second-hand cars can be taken even if ITC is availed on the input goods and inputs services used in furtherance of business. However, ITC cannot be availed on tax paid on purchase of second-hand vehicles, if dealer of the said second-hand vehicles intends to take concessional rate of GST under the margin scheme.
6. What is the classification of sublimation paper?
There were disputes in the field regarding the correct classification of sublimation paper i.e whether sublimati
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ste and scrap and used cooking oil, by a registered person to a registered person. The Council has also recommended the introduction of Reverse Charge Mechanism (RCM) on the supply of such waste and scrap by an unregistered person to a registered person provided that the supplier shall take registration as and when it crosses threshold limit and the recipient who is liable to pay under RCM shall pay tax even if supplier is under threshold.
9. What is the existing mechanism based on which this recommendation regarding waste and scrap of plastics, waste and scarp of tyres, electrical and electronics waste and scrap and used cooking oil is made?
The mechanism is on the lines of the TDS and RCM framework already in place for metal scrap which was introduced based on the recommendations of the 54th GST Council meeting. Under that framework, TDS at the rate of 2% under Section 51 of the CGST Act, 2017 is to be paid on the supply of metal scrap by a registered person to a registered per
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lier required to take registration under GST for supply of waste and scrap of plastics, waste and scarp of tyres, electrical and electronics waste and scrap and used cooking oil?
The supplier is required to take registration under GST when the aggregate turnover crosses the threshold limit prescribed under Section 22 of the CGST Act, 2017. Once the threshold is crossed, the supplier must obtain registration and the TDS provisions will apply to subsequent supplies made to registered persons.
13. If the supplier of waste and scrap of plastics, waste and scarp of tyres, electrical and electronics waste and scrap and used cooking oil is below the threshold limit and is unregistered, is the recipient still required to pay tax under RCM?
Yes. The recipient who is a registered person is required to pay GST under RCM on the supply received from an unregistered person, even if the unregistered supplier is below the threshold limit for registration.
14. What are the compliance obliga
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which prescribes Nil rate of GST.
(The above changes will be implemented by issuance of relevant notifications, circulars, etc. which will be uploaded on the CBIC website (taxinformation.cbic.gov.in))
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Frequently Asked Questions (FAQs) on issues related to services
(A) Helicopter passenger transport
Q 1. Whether the proposed exemption to passenger transport by helicopter on a seat- sharing basis is in addition to the existing exemption available to passenger transportation by air in economy class?
Ans. Yes, the existing GST exemption for passenger transportation by air in economy class embarking or terminating at specified airports will continue. In addition, the exemption will be extended to passenger transportation by helicopter on a seat-sharing basis from/to such airports.
Q 2. Will the chartered helicopter services also qualify for this exemption?
Ans. No, the chartered helicopter services will not be covered by the proposed exemption. The proposed
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ndian establishment when such services are provided without consideration. Services provided against consideration will continue to be taxed in accordance with the applicable provisions.
Q 5. What is meant by a “foreign company” for the purposes of the proposed exemption?
Ans. “Foreign company” would have the same meaning assigned to it under section 2(42) of the Companies Act, 2013.
Q 6. What will be the treatment of the GST liability for the past period?
Ans. For the past period, the GST treatment of such transactions will be regularised on an “as is where is” basis since the exemption will come into effect from the date specified in the relevant notification. This means that the tax position already adopted by the taxpayers for the past period will be accepted; In cases where the GST was paid, no refund of such amount will be allowed.
Q 7. Does the exemption for foreign shipping lines bring parity with the treatment of foreign airlines?
Ans. Yes. The exemption brin
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tal services. This resulted in differential GST treatment for otherwise similar services, based solely on the fact whether the vehicle was powered by conventional fuel or electricity.
Q. 9 Whether the said disparity in GST treatment for passenger transportation and rental services with operator using electric vehicles vis-à-vis those using conventional vehicles, is being resolved?
Ans. Yes, the proposed change aligns the GST treatment of passenger transportation and rental services (with operator) using electric vehicles where cost of battery charging is included in the consideration, with the corresponding services using conventional vehicle, where cost of fuel is included in the consideration. Accordingly, the GST rates applicable for such services using an EV will be the same as those applicable to the corresponding conventional-vehicle services.
Q 10. Whether the proposed GST rate also apply to leasing services of electric vehicles as goods (i.e. without an operator
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s are supplied/ordered through an ECO?
Ans. In cases where services of transportation of goods by GTA are in respect of goods, which are supplied/ordered through an ECO, GST @ 5% without ITC or 18% with ITC will be applicable and the benefit of exemption under Entry no. 21A will not be available for such services.
Q 13. Whether the ECO, through which goods are ordered/supplied, will be liable to pay GST under section 9(5) of CGST Act, 2017 for the services of transportation of such goods GTA?
Ans. No. The ECO is not liable to pay GST under section 9(5) of CGST Act, 2017 for the services of transportation of goods by GTA even if the said service is supplied in relation to goods which are supplied/ordered through an ECO. In such cases, GTA will be liable to pay GST, as applicable.
Q 14. Whether the proposed change in Entry 21A of Notification No. 12/2017-CTR will impact the tax treatment on the services of transportation of goods by GTA if the said services are not in relatio
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service provider at the rate of 5% without ITC in accordance with the provisions applicable for delivery services.
Q 17. Whether the proposed changes will affect the GST treatment on services of transportation of goods by individual truck owners/operators?
Ans. No. The changes do not affect the GST treatment on services of transportation of goods by individual truck owners/operators.
Grant of Right to collect and appropriate tolls from Users
Q 18. What is the implication of proposed exemption in relation to upfront payment made by concessionaire for highway projects under Toll-Operate and Transfer (TOT) model?
Ans. The exemption will be available to leasing services by way of grant of exclusive rights to access, use, operate, collect, demand and appropriate toll where the upfront payment is made for receiving such services by the concessionaire. Hence, the upfront payment made in such projects under TOT model will be covered by the exemption.
Q 19. Whether the servic
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Who is eligible to avail the special procedure being provided regarding time of payment of tax and valuation of O&M services?
Ans. The special procedure being provided under Section 148 of CGST Act applies to a registered person who is a concessionaire under a TOT Concession Agreement with the Central Government, State Government, Union territory, local authority, Governmental Authority or Government Entity, wherein the concessionaire is required to supply Operations & Maintenance (O&M) services of the road or highway and the expenditure towards such services is adjusted out of the upfront concession fee paid by the said concessionaire.
Q 23. Why this special procedure has been prescribed for valuation and taxability of O&M services provided under TOT model?
Ans. The value for O&M services is not generally determinable in a TOT project, where the upfront consideration paid by the concessionaire to the concessioning authority is adjusted for the expected cost to be incurred fo
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required to be paid at the commencement of the concession period?
Ans. No. In cases covered by the proposed notification, GST on O&M services will require to be paid in accordance with the special procedure under Section 148 of CGST Act, to the extent of the actual O&M expenditure charged/debited from the Escrow Account during the relevant tax period.
Q 27. Does the special procedure apply to every O&M contract for roads or highways?
Ans. No. The special procedure applies only where the registered person is a concessionaire under a Toll-Operate-Transfer (TOT) Concession Agreement and is required to undertake O&M of the road or highway during the concession period and where the O&M expenditure is adjusted from the upfront amount paid by the concessionaire to the concessioning authority
(G) Input Tax Credit for the reseller of certain services
Q 28. Whether ITC is to be allowed to Reseller of certain services (leviable at 5% without ITC) where the ITC is presently blocked
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ded by Seamen's Provident Fund Organisation (SPFO)
Q 31. What are the services on which exemption is provided for SPFO?
Ans. An exemption is being provided for the services provided by the Seamen's Provident Fund Organisation (SPFO) in administering the Seamen's Provident Fund Scheme to the persons governed by the Seamen's Provident Fund Act, 1966, on the lines of the existing exemptions available to EPFO and CMPFO.
(J) Research and Development Services
Q 32. How will it be determined whether an activity is in the nature of research and development or consultancy for the purpose of availing the GST exemption?
Ans. For the purpose of distinguishing research and development services from consultancy services, the concerned Head of the Government Entity, research association, university, college or other eligible institution notified under clauses (ii) or (iii) of sub- section (1) of section 35 of the Income Tax Act, 1961, undertaking the research has been e
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thorities during scrutiny, audit, investigation, etc.
Q 34. Is any specific format prescribed for furnishing the self-certification in respect of Research and Development activities?
Ans. No specific format has been prescribed for such self-certification.
(K) Coffee Curing Services
Q 35. What is meant by curing of coffee?
Ans. As per the Coffee Act, 1942, curing means application of mechanical processes, other than pulping, to raw coffee for the purpose of preparing it for marketing. Coffee curing may involve processes such as drying, hulling, cleaning, sorting, grading and polishing of coffee beans.
Q 36. Whether the process of coffee curing not covered under the existing exemption?
Ans. Under the existing exemption, specified processes such as drying, cleaning, curing, sorting and grading of agricultural produce are exempt when carried out at an agricultural farm.
Coffee curing, however, owing to climatic and geographical considerations, ordinarily cannot be u
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ing?
Ans. The exemption for the services of coffee curing provided by the coffee curer to the coffee cultivators will benefit primarily the coffee cultivator, by reducing its cost of getting the coffee processed/curied.
(L) Storage and Warehousing of Seeds
Q 40. What change has been made in respect of storage or warehousing of seeds?
Ans. A specific exemption from GST is being provided for services by way of storage or warehousing of seeds meant for sowing, irrespective of the fact whether such seeds are covered by the definition of 'agricultural produce' or not.
Q 41. Which seeds are covered by the exemption?
Ans. The exemption will apply only to the seeds meant for sowing, as defined for the purposes of the relevant notification. Seeds not meant for sowing and processed products derived from seeds or seeds processed for consumption, industrial or any other non- sowing use would not be covered.
Q 42. Is the exemption for storage or warehousing available on
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