0711 – Goods and Services Tax – Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state fo
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4904 00 00 – Goods and Services Tax – Music, printed or in manuscript, whether or not bound or illustrated *************
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Goods and Services Tax – Video game consoles and machines, articles of funfair, table or parlour games, including pintables, billiards, special tables for casino games and automatic bowling alley equipment [other than playing cards, ganjifa card, chess board, carom board and other board games of 9504 90 90 like ludo, etc.] ************* = = = = = = = = Plain text (Extract) only = = = = = = = =
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8507 – Goods and Services Tax – Lithium-ion accumulators (other than battery) including lithium-ion power bank *************
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4012 – Goods and Services Tax – Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber ************* = = = = = = = = Plain text (Extract) only = = = = = = = =
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6305 32 00 – Goods and Services Tax – Flexible intermediate bulk containers *************
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4503 – Goods and Services Tax – Articles of natural cork such as Corks and Stoppers, Shuttlecock cork bottom *************
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4504 – Goods and Services Tax – Agglomerated cork (with or without a binding substance) and articles of agglomerated cork *************
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4502 00 00 – Goods and Services Tax – Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including sharp-edged blanks for corks or stopper
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8714 20 – Goods and Services Tax – Parts and accessories of carriage for disabled persons *************
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6602 00 00 – Goods and Services Tax – Walking-sticks including seat sticks *************
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4501 – Goods and Services Tax – Natural cork, raw or simply prepared *************
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2515 11 00 – Goods and Services Tax – Marble and travertine, crude or roughly trimmed *************
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GST – Started By: – Madhavan iyengar – Dated:- 6-1-2019 Last Replied Date:- 7-1-2019 – X is a software company based in india and has exported services in fy 13-14/14-15/15-16 to its related party which is a separate incorporated company in europe and also claimed refund of input services under rule 5A as it satisfies all conditionsissue: Due to some international tax judgements in European union there is a upward revision in the pricing of all the earlier contracts and the foreign company has paid the additional amount in fy 17-18 after making calculations based on the judgements and this is a significant amount.this additional amount which is received in march 18 in relation to earlier year contracts can it be held as export of services
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GST Acts came into force. I presume that since you have exported the service under rule 6A of Service Tax Rules, 1994 you would have complied with conditions specified there. Export of services is exempted from payment of service tax. TAx/duty paid on input services and inputs utilised for exporting the service can be claimed under Rule 5A of CENVAT Credit Rules, 2004. Since the exported service is exempted from payment of service tax, the reduction in serviced charges of the exported service will not affect the credit already availed by you and the claim for refund of the credit of tax/duty paid on input services/inputs will not be affected by such reduction service charges by your customer. This is my view. – Reply By Madhavan iyengar – T
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GST – Started By: – Madhavan iyengar – Dated:- 6-1-2019 Last Replied Date:- 7-1-2019 – A Company based X in India has imported services from its related party B in Germany, X has discharged IGST on RCM basis based on invoice of ₹ 100000/- ( converted value) issued by B and claimed ITC of say ₹ 18000Issue: After 4 months B issues a credit note to A reducing the earlier invoice amount.by rs. 50000/- Is A required to reverse the ITC of IGST taken earlier in proportion to reduction in value of the invoice – ie is IGST reversal of rs. 9000 to be done by A If no then reasons for same – Reply By Spudarjunan S – The Reply = Dear Sir, No Need to reverse the same. Reasons for the same is provided below:- The recipient of a supply has to reverse his Input tax credit if his supplier issues him a TAX CREDIT NOTE under section 34 of CGST Act, 2017. Credit notes can be a Tax Credit note or a Financial Credit note, in case of financial credit note there is no requirement of reversal of in
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appens in case of goods if it is a local sale and financial credit note issued by supplier and the differential amount is booked as income ??? is gst to be discharged. – Reply By Spudarjunan S – The Reply = In case of financial credit notes in domestic supplies, the query of non-payment of consideration arises. However the same financial credit note can be treated as payment of consideration through book adjustments. so no need to reverse the ITC in relation to such financial credit note. There are CESTATdecisions in Service Tax regime supporting the same – Reply By Madhavan iyengar – The Reply = thanks in case of services there is a challenge if we look at sec 16 which talks about conditions for taking credit- if credit note is issued for deficient supply of services for a certain amount then to that extent can it be inferred that some part of services are not received hence reversal will trigger iam only referring to cases in which credit note is given with out gst impact but then al
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ntation that the financial credit note has been issued for discount for taking this stand. If the credit note has to been issued for doing anything or achieving anything which is been agreed between the supplier and the recipient the department may take a stand that such credit note is consideration for supply of services as per Schedule II – Sl.no.5(e) of CGST Act, 2017. – Reply By Madhavan iyengar – The Reply = thanks but pls see below points in light of section 16 for receipt of goods/services in case of services there is a challenge if we look at sec 16 which talks about conditions for taking credit- if credit note is issued for deficient supply of services for a certain amount then to that extent can it be inferred that some part of services are not received hence reversal will trigger i am only referring to cases in which credit note is given with out gst impact but then also can reversal get trigerred the above needs to be looked into for both domestic / rcm as sec 16 is the bas
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GST – Started By: – SHARAD ANADA – Dated:- 6-1-2019 Last Replied Date:- 9-1-2019 – Respected SirGreetingsI have few queries on travel agents/ tour operator services. PL give your expert opinion.1) Travel agent booked ( blocked) 100 air tickets for rs 5000 per tickets from IATA agent. IATA agent will pay commission if RS 200 per tickets with 18% GST. He in turns slaes air tickets with his markup of RS 500 per ticket. He raise of bill of 5500/- on his customer. On which amt GST is applicable? Is it applicable on 5500 or only on 500/-. 2) some times it happens that out of 100 tickets he is able to sale only 85 tickets and for balance tickets he will pay cancellation charges and book cancellation charges as expenditure in his books of account.
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d travel agent have to pay GST on rcm basis? – Reply By KASTURI SETHI – The Reply = Dear Querist, Query-wise reply is as under:- Reply to Query No.1. It is covered under Rule 32(3) of CGST Rules, 2017 which reads as under :- The value of the supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of five per cent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air. Explanation. – For the purposes of this sub-rule, the expression basic fare means that part of the air fare on which commission is normally paid to the air
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170626-01 – REGISTRATION Q. 1 Does aggregate turnover include value of inward supplies received on which RCM is payable? Ans. 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. Q. 2 What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership? Ans. New registration would be required as partnership firm would have new PAN. Q. 3 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? Ans. 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. Q. 4 Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued? Ans. Provisional GSTIN (PID) should be con
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ent under reverse charge? Ans. Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier. Q. 9 If there are two SEZ units within same State, whether two registrations are required to be obtained? Ans. SEZs under same PAN in a state require one registration. Please see proviso to Rule 8(1) of CGST Rules. Q. 10 Is an advocate providing inter-state supply chargeable under Reverse Charge liable for registration? Ans. 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. Q. 11 When is registration in other State required? Will giving service from Nasik to other State require registration in other state? Ans. 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. Q. 12 I have migrated under GST but want to register as IS
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ter for GST, if the turnover exceeds 20 lacs? Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover. Q. 17. Is it correct that person dealing exclusively in NIL rated or exempt goods/services liable to register if turnover 20/10 Lakh? Ans. There is no liability of registration if the person is dealing with 100% exempt supplies. Q. 18 If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration? Ans. Yes, you would be treated as a normal taxable person. Q. 19 Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)? Ans. Separate registration as tax deductor is required. Q. 20 Is separate registration required for trading and manufacturing by same entity in one state? Ans. There will be only one registration per State for all activities. Q. 21 I am registered in TN and getting the service from unregistered dealer of AP
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or before 31st July 2017. Q. 26. When turnover of agents will be added to that of the principal for registration? Ans. No. Q. 27. If I am not an existing taxpayer and wish to newly register under GST, when can I do so? Ans. You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017. REFUND Q. 28. I have a pending export refund in Service Tax. What will happen? Ans. Refunds under earlier laws will be given under the respective laws only. Q. 29. As an exporter, how do I ensure that my working capital is not blocked as refunds? Ans. 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. CESS Q. 30. What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay? Ans. Clean Environmental Cess on coal will be replaced by GST Compensation Cess. COMPOSITION SCHEME Q. 31. Suppose I am in composition scheme in GST. If I p
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imports. Q. 36. Please clarify status of international export freight under GST as the same was exempt under POPS rules. It is zero rated in most countries. Ans. POS for transport of goods determinable in terms of Section 12(8) or Section 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies. Q. 37. When goods are being imported from SEZ who will pay IGST? Ans. 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. Q. 38. Who will pay IGST when goods are procured from SEZ? Today importer is paying both BCD and CVD. Ans. Such supply is treated as import and present procedure of payment continues with the variation that IGST is levied in place of CVD. INPUT TAX CREDIT Q. 39. Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize for payment of SGST in Madhya Pradesh? Ans. SGST of one State cannot be u
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How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same? Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR-2 provides for reporting of same by the recipient. INVOICE Q. 45. A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately? Ans. In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice. Q. 46. Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers? Ans. There is no requirement to take Aadhaar/PAN details of the customer under the GST Act. Q. 47. All expenses like freight/transport/pack-ing which are charged in Sales Invoice are taxable in GST? How to charge in bill? Ans. All expenses will have to be included in the value and invoice needs to be issued accordingly. Please
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e details of unregistered dealers also in GST? Ans. Generally not. But required in case of inter-State supplies having invoice value of more than 2.50 Lakhs. Q. 53. How to incorporate two supplies in return for Pharma with same HSN code of four digits but having different tax rates? Ans. Returns provide for furnishing rate wise details. SUPPLY Q. 54. Should we discharge GST liability for all reverse charge having small amounts of Transaction or any amount limit is there? Ans. It has been decided that 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. Q. 55. What is treatment of promotional item given free to end consumers by FMCG companies? Ans. Tax will be charged only on the total consideration charged for such supply. Q. 56. How to comply with 9(4) of CGST Act if POS is in another State of the unregistered supplier? Ans. Any person making inter-State supply has to
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ial like drums supplied with finished goods? Ans. GST will be levied on the value charged for the supply only. Q. 62. How will disposal of scrap be treated in GST? Ans. If the disposal is in the course or furtherance of business purposes, it will be considered as a supply. Q. 63. 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? Ans. 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. Q. 64. If address of buyer is Punjab and place of supply is same State of supplier (Rajasthan), then IGST will apply or CGST/SGST? Ans. 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. Q. 65. Why is bifurcation of cash deposit as CGST-SGST-IGST required? Is cas
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under Section 8 differ. Please explain consequences. Ans. 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. Q. 70. Whether slump sale will attract GST. If yes then under which Section? Ans. It will have the same treatment as normal supply. Q. 71. Salary by Partnership firm to Partners as per Income Tax Act liable to GST? Partners are not employees of the firm. Ans. Salary will not be leviable of GST. TRANSITION Q. 72. How do I avail transition credit ? Ans. Transition credit can be availed by filing the respective forms under Transition rules upto 30-9-2017. Q. 73. Please provide the clarity on area based exemption Notification No. 50/2003-C.E. in UK & HP. Ans. Area based exemptions will not be continued under GST. It will be operated through the route of reimbursement as prescribed. Q. 74. We manufactured excisable goods. But unit av
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n 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. Q. 78. 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? Ans. 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. Q. 79. Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice? Ans. 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. Q. 80. In June 17 VAT return no amount carried forward & held stock of 50 lakhs. Then can we take credit of that stock or not? Ans. The supplier
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ng on transition date? Ans. Balance VAT credit in the return will be transferred to new provisional ID as SGST Credit. Q. 86. What about deemed export against Form H? Ans. Form H will not be there in GST. Q. 87. Who will bear tax difference on closing stocks as on 30th June 2017? Whether the manufacturer/dealer or government? Ans. Closing ITC in VAT return will be allowed to be carry forward in GST. Q. 88. How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid? Ans. For all inputs with duty paying documents available respective CGST / SGST credit will be available. But credit of CST will not be available. Q. 89. 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%. Ans. 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. Q. 90. Whether
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170731-02 – Question 1 : How will imports be taxed under GST?
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input tax credit. Identical provisions exist under the IGST Act, 2017 and relevant SGST/UTGST Acts.
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p>
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If the goods or, capital goods, as the case may be, are not returned to the principal within the time specified above, the same shall be deemed to have been supplied by the principal to the job worker on the date the goods were sent out to the job worker and the principal shall be required to pay tax accordingly on such supplies.
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ever, as an export facilitation measure, for the transition period of 3 months from July to September, 2017, drawback at higher composite rates will continue to be granted subject to the condition that no input tax credit of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170808-01 – Q. 1 What is meant by health care services under GST? Ans. Under the ambit of GST, healthcare services may refer to any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma. Q. 2 In what manner is the GST going to impact the heal
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eduction in entire value chain in the production of the manufacturing of drugs and medicines, medical devices would lead to better healthcare services in the long run. Under GST, duty charged on the import of technical machinery and equipment needed by the health sector would be allowed as a credit. This benefit of the overall reduction in the cost of technology is due to implementation of GST. Q. 4 How will GST impact life-saving drugs and equipment? Ans. Life-saving drugs, healthcare services, and medical devices would continue to be tax-free under GST. Hence, the prices will not be impacted in the short run. However, ease of processes and overall reduction in the magnitude of taxes throughout the value chain of manufacturing of drug
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 180223-01 – Q.1 What is zero rated supply under GST? Ans. Under GST, exports and supplies to SEZ are zero-rated as per Section 16 of the IGST Act, 2017. By zero-rating, it is meant that the entire supply chain of a particular supply is tax free, i.e., there is no burden of tax either on the input side or output side. Q.2 What are the options for getting refunds for persons making zero rated supplies? Ans. As per Section 16(3) of the IGST Act, 2017, a registered person making a zero-rated supply is eligible to claim refund in accordance with the provisions of Section 54 of the CGST Act, 2017, under either of the following options, namely : (i) He may supply goods or services or both under bond or letter of undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit of CGST, SGST/UTGST
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T refund from Customs? Ans. As per Rule 96 of the CGST Rules, 2017, dealing; with refund of IGST paid on goods exported out of India, the shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India, once both the export general manifest (EGM) and valid return in Form GSTR-3 or Form GSTR-3B, as the case may be, has been filed. Thus, once the shipping bill and the EGM is filed and a valid return is filed, the application for refund shall be considered to have been filed and refund shall be processed. Q.6 Who would process IGST refund claim? Ans. The IGST refund module has been designed to have an in-built mechanism to automatically process and grant refund after validating the shipping bill data available in ICES against the GST return data transmitted by GSTN. Manual intervention would be limited to only exceptional cases where automatic validation becomes impossible due to some technical err
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incomplete, e.g., details of shipping bill and port number/code are not mentioned. (iii) IGST paid under Table 3.1(b) of GSTR-3B being less than total IGST claimed in Table 6A of GSTR-1/1E of the same period. The claim cannot be more than that of the amount of IGST paid. Q.9 What steps are to be taken in cases of errors mentioned above and who should be contacted in such cases? Ans. Correction of errors need to be done in the GST return filed. Table 9A has been provided to carry out those corrections. If the exporter finds that even after the correct filing of return, their shipping bills do not reflect in Customs system (reflected in ICEGATE login of exporter), they may write to GSTN helpdesk. Q.10 How can I find whether my refund data has been successfully transmitted by GSTN to Customs or not? Ans. GSTN is reportedly working on a feedback/message system so as to inform the exporters about such failed validations. At present, the Customs system, does not have any
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But, wherever the matching fails on account of some error, the refund do not get sanctioned. The matching between the two data sources is done at invoice level and any mis-match of the laid down parameters results in one or more of the following errors/responses : Code Meaning SB000 Successfully validated SB001 Invalid SB details SB002 EGM not filed SB003 GSTIN mismatch SB004 Record already received and validated SB005 Invalid invoice number SB006 Gateway EGM not available Q.12 What should be done for error code SB001? Ans. This may occur due mention of wrong shipping bill number furnished in GSTR-1/Table 6A. The possible reason for such mismatch could be a clerical error made by the exporter at the time of filling of GSTR-1/Table 6A, which can be rectified by making amendments in GSTR-1 by using Form 9A. Form 9A has been made available by GSTN w.e.f. 15-12-2017 in exporter s login at the GST common portal. Q.13 What should be done for error code SB002? Ans. Export
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can happen due to : (i) Typographical mistake while entering data in GSTR-1 or the SB. (ii) The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers. After the implementation of GST, it was explained in the advisories that the details an exporter is required to enter in the invoice column while filing the SB pertains to the invoice issued by him compliant to GST Invoice Rules. The invoice number shall be matched with GSTN to validate exports and IGST payment It was conveyed and reiterated that there should not be any difference between commercial invoice and GST invoice after implementation, of GST since as per the GST law, IGST is to be paid on the actual transaction value of the supply between the exporter and the consignee, which should be the same as the one declared in the commercial invoice. If SB005 is due to a data entry mistake in GSTR-1, it can be amended in Form 9A. But any mistake in the SB cannot b
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ced that gateway EGM in case of many ICD shipping bills have been manually filed, leading to such refunds not being processed. While the Customs at gateway ports are pursuing this matter with the shipping lines, the exporters can also approach their shipping line to file the EGMs electronically. Q.18 What is the exporters role in case of IGST refunds? Ans. Exporters have to ensure that only correct as well as sufficient information is filed by them in both the GSTN and the Customs system. (i) The exporter has the option to check the GST validation status for his SBs after logging into ICEGATE website. This report shows the response/error code for each of his SBs wherever data has been received from GSTN. (ii) The exporter also has the option to view the SB details relevant for IGST validation on the ICEGATE website. The exporter can view this while filing the GST returns and ensure that the details are entered accurately in the returns as well so that no mis-match occurs. (ii
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overs multiple invoices, few of the invoices might have been successfully validated with code SB000 whereas other invoices might be containing other types of error/s. (iii) Composite rate of drawback has been claimed for that SB during the transitional period between 1-7-2017 to 30-9-2017, thus making the SB ineligible for IGST refund. (iv) Where the IGST claimed amount is less than ₹ 1000/-. In all the above cases, the scroll amount shall automatically become zero and the SBs shall not be included in the refund scroll. There are two more reasons where the SBs will figure in the temporary IGST scroll but not in the final scroll. This could happen if there is an alert/suspension on the IEC in ICES or if the account of the IEC is not validated by PFMS. Q.20. What is the course of action if there are multiple errors in the refund claim? Ans. Each such error would be required to be corrected individually in order to get refund. Q.21 In case of errors, where should I co
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170818-01 – Question 1 : Whether software is regarded as goods or services in GST? Answer : In terms of Schedule II of the CGST Act, 2017, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services. But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523. Question 2 : What are the implications of recognising the development, design, programming, customisation, adaptation, upgradation, enhancement, and implementation of information technology software as a service? Answer : The primary implication is that the place of
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then integrates and supply as a package to clients. These individuals are having small turnover of ₹ 5 to 10 lakh, and therefore are not registered in GST. Whether there is any liability on B in respect of services provided by such individuals? Answer : If the supplies are made by unregistered suppliers, GST is liable to be paid by the recipient, who is a registered person, under section 9(4) of the CGST Act, 2017. Therefore, in this case B is liable to pay GST on services provided by these individuals. B can claim credit of this tax paid by him on reverse charge. Question 5 : What is the rate of tax on IT services? Answer : The rate of GST on IT services is 18%. Question 6 : Whether exports of software services attract GST? Answer : Exports and supplies to SEZ units and SEZ developers are zero-rated in GST. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitled to the input tax credit on inputs/input service
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planation 1 of section 8 of the IGST Act, 2017. Question 8 : How do I determine the place of supply of IT/ITES services? Answer : Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and 13 of the IGST Act, 2017. However, if the recipient is not registered and his address is not available on the records of the supplier, the place of supply would be the location of the supplier. Question 9 : How to determine the location of the recipient? Answer : Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does not have a place of business, his usual place of residence is outside India. Question 10 : Would I be liable to pay GST on reverse charge even if the foreign supplier of software from whom I buy for use in my firm registered under GST was to accept the paymen
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vice is location of the supplier in terms of section 13(8) of the IGST Act, 2017. As C is located outside India, GST is not payable in this case. Question 12 : What factors determine the location of C (in question 11) as being outside India? Answer : In terms of section 2(15) of the IGST Act, 2017, the location of a service provider is to be determined by applying the following steps sequentially : (1) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; (2) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (3) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply; and (4) in absence of such places, the location of t
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units within a State, whether located in one SEZ or more than one SEZ. (2) A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017). Question 15 : I have a unit in the DTA and another in the SEZ; can I take a common registration? Answer : No. A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State, shall make a separate application for registration for SEZ unit(s) as a business vertical distinct from his other units located outside the Special Economic Zone in that State (Refer Rule 8(1) of CGST Rules, 2017). Question 16 : If I supply a laptop bag along with the laptop to my customer, what would be the rate of tax leviable? Answer : If the laptop bag is supplied along with the laptop in the o
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governing the usage. The agreement is renewable and/or could be amended from time to time. To find out as to whether there is an element of supply involved when software is delivered to its customer, the terms and conditions of EULA are material. The contract for supply therefore assumes significance in this test to decide whether or not there has been temporary transfer or permitting the use or enjoyment of any intellectual property right . Question 19 : What special provisions are attracted in GST with regard to associated enterprises? Answer : An enterprise which participates, either directly or indirectly, through one or more intermediaries, in the management, or control or capital of the other enterprise is an associated enterprise. In the context of GST, associated enterprise is particularly relevant in the case of supply of services, where the supplier is located outside India. In such cases, the time of supply will be the earlier of date of entry in the books of acco
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who bills the OEM for the services he provides to the customer. What is the tax liability of D ? Answer : D is providing service to the OEM. GST is payable on the value of any supplies made by D to OEM i.e. in respect of bills raised by D on the OEM. Question 22 : How will the defective parts be sent to the mother warehouse/repairing centre for repair by the downstream repairing centres? What is the tax liability? Answer : The defective parts shall be sent for repair on a delivery challan accompanied by such e-way bill as may be prescribed. GST shall be chargeable on the repair amount, including the cost of parts, charged by the repairing centre. Question 23 : What is the tax liability in a scenario where supplies are made from multiple locations (in different States) of the supplier to the recipient under a single contract? Answer : Delivering services from various locations and integrated pricing for the contract as a whole is the norm in IT/ITES industry. N
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Answer : The second proviso to rule 28 of the CGST Rules, 2017 provides that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods and services. Question 25 : Can payment of IGST on reverse charge basis on import of goods/services be done through book entry or ITC? Answer : No. GST payable on reverse charge basis is to be discharged through cash only. Rule 85(4) of the CGST Rules, 2017 refers. Question 26 : Is the requirement of transferring of credit through ISD mechanism mandatory? Answer : The ISD provision under the CGST Act, 2017 is not mandatory. It only provides the manner of distribution of ITC wherever the business entity wishes to distribute the ITC as an Input Service Distributor. Question 27 : What is the format for invoices to be issued in the case of reverse charge payment of GST? Answer : No separate format for any type of invoicing including s
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170731-01 – Question 1 : Can small mining leaseholders with a turnover less than ₹ 75 lacs operate under composition scheme? Answer : As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed ₹ 75 lakhs, would be eligible for paying GST under the composition scheme. Question 2 : What is the GST rate for minerals and ores in Composition Scheme? Answer : In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½% (CGST) and ½% (SGST/UTGST). Question 3 : Will they have to deposit GST under SGST/CGST heads separately? Answer : Yes. GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return. Question 4 : Can a small Mine Lease holder u
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ne owner who is paying tax under composition scheme is registered, the recipients need not pay GST on reverse charge mechanism. Question 8 : What is the threshold limit and conditions when a small mine owner/lease holder under Composition Scheme has to migrate into full GST System? Answer : As per section 10(3) of the CGST Act, 2017, the option availed of by the small mine owner/lease holder shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds ₹ 75 lakhs. For details regarding other conditions, section 10 of the CGST Act, 2017 and the rules framed there under may be referred to. Question 9 : Is the Return filing and compliance simpler under composition scheme? Answer : Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4. Question 10 : Will the basic exemption limit from GST be applicable to the tiny &
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omputed on all India basis but excludes Central tax, State tax, Union territory tax, integrated tax and compensation cess. Question 12 : Will the buyer of goods from unregistered person pay reverse tax? Answer : A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate), dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax under reverse charge mechanism. This exemption will not apply if the value exceeds ₹ 5000/-. Question 13 : Can a buyer of goods and services pay the value of services/goods to the supplier and deposit the GST component of the invoice in the supplier s account so that when the buyer claims input credit, he may get the same cr
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it will be applicable on the amount of advance received by the mining company for booking the order? Answer : No. As per the provisions of section 12(2) of the CGST Act, 2017 the time of supply of goods shall be the date of issue of invoice or the date of receipt of payment, whichever is earlier. Accordingly, GST would be payable on advance payment received prior to issuance of the invoice. Question 17 : Will the supplier have to issue receipt voucher against each advance received? Answer : Yes, as per section 31(3)(d) of the CGST Act, 2017 the supplier has to issue a receipt voucher for every advance received. Question 18 : How do I show the advance received in GSTR-1? Answer : Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances against which the invoices have not been issued till
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w will the billing person at one point realize how much balance advance is available for adjustment while raising invoice at his end at a specific point of time? Answer : Under GST gross amount of advance is to be reported and tax has to be paid. Advance can be adjusted in totality. While raising the invoice subsequent to receipt of advance, the tax payable will get reduced by the amount of tax paid on the advance and balance amount of advance may be adjusted against future supplies. Question 21 : Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit? Answer : The provision of Sec. 17(5)(a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression motor vehicle shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988,
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for availing input credit under GST? Answer : As per provisions of Section 16(4) of the CGST Act, 2017 the ITC is not available after the due date of furnishing the return for the month of September of the next year or furnishing of the annual return, whichever is earlier. Question 25. Would the net outstanding amount of unutilised input credit be refunded by the Government? Answer : In terms of the provision of Section 54(3) of the CGST Act, 2017 subject to conditions, refund of unutilized input tax credit would be available in respect of zero rated supply or where ITC has accumulated on account of rate of tax on inputs being higher than the rate of tax on the output supply. However, such refund of ITC would not be available if export duty is payable on the goods so exported out of India. Question 26. Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining com
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yer irrespective of the ownership of the transporting vehicle? Answer : In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply where the consideration will be inclusive of the transportation cost. Therefore, GST on forward charge will be payable by the supplier of the mineral and credit will be available to the buyer if otherwise available. The supplier of the mineral will also pay tax on reverse charge basis on the freight charged by the GTA and the credit of the same will be available to the supplier of the mineral. In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same. The tax on the mineral will be paid on forward charge by the supplier o
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apital goods are used in the course or furtherance of business. Hence, it will be eligible as capital goods and ITC will be available under GST. Question 31. Will ITC be available for holding Environmental Clearance (EC) and Forestry Clearance (FC) meetings and for obtaining consent to operate the Mines? Answer : Yes, ITC on expenses incurred in the course or furtherance of business shall be available. Question 32. Will the mining companies be eligible to take ITC for construction of townships, hospitals and schools? Answer : No. Mining companies will not be eligible for ITC on such activities even if used in course or furtherance of business. In this connection, the provisions contained in section 17(5)(c) of the CGST Act, 2017 refer. Question 33. Are minerals sent for export in processed or raw form fully exempted from payment of GST or I GST? Answer : In terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods is considered as zero
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kward areas, and the problem will be aggravated as the huge number of mines are operating without any IT infrastructure? Answer : Returns may be filed from the central office of the Company which are usually located in areas with infrastructure required for filing such returns. Question 36. Whether GST TDS will be applicable on Works Contract Jobs (to be renamed as Supply of Services) in case of PSUs, since such GST TDS U/s. 51(1) of CGST Act, 2017 is applicable on : a) Dept., or establishment of the Central Govt., or State Govt.; or b) Local authority; or c) Govt., agencies; or d) Such persons or category of persons as may be notified by the Govt., on the recommendations of the Council. Answer : TDS, under section 51(1) of the CGST Act, 2017 will apply to supplies made to such agencies as may be mandated by the Government for TDS. As of now, this section has not been notified and therefore TDS is not applicable on any supplies. Question 37. What is the requirement
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39. In Table 5(b) of GST-TRAN-1, the details of Form C, F and H/I are to be given for the period April 15 to June 17 (i.e. for 27 months) which would be a voluminous task. Reasons of furnishing the details for last 27 months may please be clarified? Answer : In cases where sales were covered by Forms C, F, H and I, the input tax credit has remained in the account of the taxpayer because the taxpayer has availed of the benefit of concessional rate/nil rate of tax on the sale/stock transfer under CGST Act. The benefit of concessional rate/nil rate is available conditional upon production of the statutory forms. Therefore, allowing migration of the credit that has accrued on account of sale/stock transfer having been made on concessional rate/nil rate should be given only on production of the statutory forms. Even otherwise, the taxpayer would have claimed refund of this ITC and such refund would have been given only on production of the statutory forms. It has been presumed th
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on coal and available at the time of transition be eligible for being carried over? Answer : No. Credit of Clean Energy Cess cannot be carried forward on transition. Question 43. Whether stock held by mining companies on which Clean Energy Cess has been paid be chargeable to compensation cess in GST regime? Answer : Yes. Compensation cess will be charged on supply of such stock. Question 44. Can supplies of coal under a particular order or under FSA (Fuel Supply Agreement) be eligible under the definition of continuous supply of goods? Answer : Such supplies are in the nature of continuous supply as the invoices are raised periodically. The individual dispatches may be covered under delivery challans and invoice may be issued for the supplies made during a period as per the contract. Question 45. In case of coal, the applicable Compensation Cess is a Fixed Amount of ₹ 400/- per MT. Under above situation, how such apportionment is possible since in c
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ch are further worked other than by way of roughly trimmed or merely cut into blocks or slabs. Question 48. Whether supply of HSD free of cost for mining operation would attract GST and whether the input tax credit would be available for GST so charged by the Service provider? Answer : HSD is outside GST and therefore, input tax credit would not be admissible. Question 49 : Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose? Answer : Credit will not be available if these goods are supplied for construction of an immovable property. But if these are temporarily placed for protective purposes, credit will be available. Question 50 : As per Section 54(3), it is clear that no refund of ITC will be available for export in the cases where product is subject to export duty. Iron Ore export is subjected to export duty. In the earlier regime, the exporters were allowed t
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170707-02 – Q. 1 What is Goods and Services Tax (GST)? Ans. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer. Q. 2 What is the taxable event under GST? Ans. Taxable event under GST is supply of goods or services or both except those specifically exempted. CGST and SGST/ UTGST will be levied on intra-State supplies. IGST will be levied on inter-State supplies. Q. 3 What is meant by Reverse Char
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ble? Ans. GST is applicable on total fare of AC and First class only of all categories of trains. GST is not applicable in other classes like second sleeper, second class (reserved & unreserved) etc. Q. 7 What is the rate of GST on passenger fare? Ans. GST is levied @ 5% on the total passenger fare of AC and First class. Q. 8 Whether any difference of fare shall be collected if the ticket has been booked before 1-7-2017? Ans. No Q. 9 If the ticket is booked on or after 1-7-2017, whether refund of GST is applicable in case of cancellation of ticket? Ans. Yes, however GST would be levied on the cancellation/clerkage charge. Q. 10 If the ticket is booked before 1-7-2017, whether service tax shall be refunded in case of cancellation of tick
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170816-02 – Q. 1. I have applied for registration and have not received ARN? What shall I do? Ans. Please complete your application procedure, ARN will be generated Q. 2 I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both? Ans. You can supply goods or services or both on invoice without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon Q. 3 I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both? Ans. Provisional ID (PID) will be your GST
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Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170712-01 – Q. 1 What is MRP? Ans. MRP is the maximum retail sale price inclusive of all taxes. Q. 2 Whether GST is included in MRP? Ans. Yes. The MRP on a pre-packaged commodity is inclusive of all taxes that can be levied from the consumer, including the GST. Q. 3 Whether any retailer may charge GST over MRP? Ans. No. GST is included in MRP and is not to be charged over MRP. Q. 4 Is it allowed to revise the MRP if there is any price change after coming into force of the GST law? Ans. With coming into force of the GST law, in rare cases, where there is a need for revising the retail sale price above the already printed MRP on a pre-packaged comm
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5 How new MRP will be calculated for the purposes of labeling? Ans. New MRP of unsold stock manufacture/packed/imported prior to 1st July, 2017 should not be calculated mechanically but after factoring in and taking into consideration extra availability of input tax credit under GST [including deemed credit available to traders under provision to sub-section (3) of section 140 of the CGST Act, 2017]. Q. 6 How upward revision of prices can be displayed? Ans. After declaration of the price by the manufacturer/Packer/Importer by complying with the procedure explained in answers to the questions 4 and 5 above, either the Manufacturer/Packer/Importer as the case may be or a Wholesaler/Retailer shall affix a sticker/print/stamp indicat
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er. Q. 8 Does the order on MRP issued by the department of Consumer Affairs apply to all the goods? Ans. The order applies only to the goods sold in the pre-packaged form, excluding scheduled formulations and non-scheduled formulation covered under the drugs (price control) order. Commodities sold in loose condition are not covered under the said order. Q. 9 What is the time limit for display of revision of MRP through stickers/stamps/online printing, on unsold stocks? Ans. The time limit is 30th September, 2017 or till the stock remains unsold, whichever is earlier. Q. 10 Is the said order applicable for unused wrappers? Ans. Yes. Any packaging material or wrapper which could not be exhausted by the manufacturer or packer or
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