Author: admin_gst

0711

0711
Upto 21-09-2025 – Goods – Exemption from GST
GST
Vegetables provisionally preserved, but unsuitable in that state for immediate consumption
 
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Notes:
As amended vide Notification No. 19/2021-Integrated Tax (Rate) dated 18.12.2021 w.e.f. 1.1.2022, before it was read as,
Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consum

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8507

8507
Upto 21-09-2025 – Goods – Schedule 3 – GST @ 18%
GST
Lithium-ion accumulators (other than battery) including lithium-ion power bank
 
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Notes:
As Inserted vide Notif

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9504

9504
Upto 21-09-2025 – Goods – Schedule 3 – GST @ 18%
GST
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.]
 
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Notes:
As Inserted vide Notification No. 25/2018-Integrated Tax (Rate) dated 31-12-2018 w.e.f. 1-1-2019
S

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4012

4012
Upto 21-09-2025 – Goods – Schedule 3 – GST @ 18%
GST
Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber
 
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No

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4504

4504
Upto 21-09-2025 – Goods – Schedule 2 – GST @ 12%
GST
Agglomerated cork (with or without a binding substance) and articles of agglomerated cork
 
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Notes:
As Inserted

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4503

4503
Upto 21-09-2025 – Goods – Schedule 2 – GST @ 12%
GST
Articles of natural cork such as Corks and Stoppers, Shuttlecock cork bottom
 
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Notes:
As Inserted vide Notific

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4501

4501
Upto 21-09-2025 – Goods – Schedule 1 – GST @ 5%
GST
Natural cork, raw or simply prepared
 
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Notes:
As Inserted vide Notification No. 25/2018-Integrated Tax (Rate) dated 31-12-2018 w.e.f. 1-1-2019
Schedules

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software services

software services
Query (Issue) Started By: – Madhavan iyengar Dated:- 6-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax – GST
Got 8 Replies
GST
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 conditions
issue: 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 m

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as under: –
The period involved is prior to 01.07.2017, that is, the date on which 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 reductio

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reverse charge import of services

reverse charge import of services
Query (Issue) Started By: – Madhavan iyengar Dated:- 6-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax – GST
Got 8 Replies
GST
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 ₹ 18000
Issue: 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 o

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ication ??
or in the books you reduce your purchase value in this case it is services received
but what happens 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 rever

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e discount is not includible in taxable value. However you should be in a position to substantiate with documentation 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 the

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GST on Travel agent

GST on Travel agent
Query (Issue) Started By: – SHARAD ANADA Dated:- 6-1-2019 Last Reply Date:- 9-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Respected Sir
Greetings
I 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 c

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age from Dubai based travel agent. Can it be considered as import of service and Gujarat based 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 expres

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GST – 100 Solutions to Taxpayers Problems dated 26-06-2017

GST – 100 Solutions to Taxpayers Problems dated 26-06-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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

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r aggregate turnover includes turnover of supplies on which tax is payable by the recipient 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

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turnover of all supplies made by you would be added.
Q. 16. If someone trades only 0% GST items (grains, pulses) then is it necessary to register 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 b

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omplete its registration formalities from its date of liability to obtain registration.
 Q. 25. What If I am not liable to register under GST but I was registered under Service tax?
 Ans. You can apply for cancellation of Provisional ID on 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 o

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The export procedure for Nepal would be same as that to other Countries.
 Q. 34.  Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
 Ans. Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.
 Q. 35. How would the sale and purchase of goods to and from SEZ will be treated? Will it be export/input?
 Ans. Supply to SEZs is zero rated supplies and supplies by SEZs are treated as 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

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thin that State for the same GSTIN only.
 Q. 42.  In case of service supplied, should the credit be given to the State where it is billed or the state it is rendered?
Ans.  Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.
Q. 43.  Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Ans.  Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
Q. 44.  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

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h are to be used for construction then delivery challan should be issued.
Q. 49.  How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
 Ans. The supplier may issue credit note to the customers and adjust his liability.
Q. 50.  Should we issue Self-invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Ans.  For RCM liabilities tax invoice has to be issued on self.
 RETURNS
Q. 51.  What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance
Ans.  Advance refunded can be adjusted in return.
Q. 52. Do registered dealers have to upload sale 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 c

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sis. So whether stipend paid to intern will also come under RCM?
Ans.  Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.
Q. 58. Salary by partnership firm to Partners as per Income Tax Act liable to GST?
Ans.  Salary will not be liable for GST.
Q. 59. Section 9(4) of CGST Act, 2017. Do I need to pay under RCM if I purchase stationary worth ` 100 from an unregistered stationery shop?
Ans.  It has been decided that ` 5000/- per day exemption will be given in respect of supplies received from unregistered person.
Q. 60. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?
Ans.  Tax is payable on consideration received for the supply.
Q. 61. Whether GST will be leviable in case of returnable packing material 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 sc

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and are required to be separately accounted for.
Q. 66. What is the difference in between 'Nil rated', 'taxable at 0%' and exempted goods and services? Especially in relation with ITC?
Ans.  Exempt supply includes Nil rated (taxable at 0%) and non-Taxable supplies and no ITC is available for such supplies.
Q. 67. Will professional tax will be abolished in Maharashtra after introducing of GST?
Ans.  Professional tax is not a tax on supply of goods or services but on being in a profession. Professional tax not subsumed in GST.
Q. 68. Employer provides bus service, meal coupon, telephone at residence, gives vehicle for official and personal use, uniform and shoes, any GST?
Ans.  Where the value of such supplies is in the nature of gifts, no GST will apply till value of such gifts exceeds ` 50000/- in a financial year.
Q. 69. The definition of composite supply and the description of same under Section 8 differ. Please explain consequences.
Ans.  Section 2(30) d

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. What about my dealers stock?
Ans.  The dealer will get deemed credit @ 40%/60% of the CGST paid on supply of such goods in GST. If the goods are branded and greater than ` 25,000, full credit using CTD can be availed.
Q. 75. A trader buys from manufacturer not registered in excise as his turnover is below ` 1.5 cr. Then in such case can trader take ITC on stock up to 40%?
 Ans. Yes deemed credit will be available subject to satisfaction of other conditions as prescribed.
Q. 76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of 1st July 2017.
 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. 77. If a trader purchases directly from manufacturer & has documents showing excise, will he get full excise credit or 40% of CGST?
Ans.  Full transition cre

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nbsp;The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.
Q. 81. What will be the impact of closing stock which has been already paid VAT on 1st July?
Ans.  The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.
Q. 82. If in VAT return refund claimed in June 17 & no balance credit in GST. Then what's the position of submission of Form C.
Ans.  Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.
Q. 83. Some service was provided on 28-6-2017 but Invoice will be raised on 5-7-2017. Whether we have to charge Service Tax or GST?
Ans.  If Point of Tax arises after appointed date, then GST will be chargeable on such supply.
Q. 84. Would we be eligible for credit on Capital Goods in transit and received post GST?
Ans.  No provision for such credit is there in

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of Section 140(3) read with Rule 1(4) of Transition Rules are satisfied.
Q. 90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?
 Ans. No such provision in GST.
Q. 91. Can ITC of Swach Bharat Cess or Krishi Kalyan Cess be carried forward under GST?
 Ans. No
Q. 92. Will Clean Energy CESS on imported Coal @ ` 400 PMT continue to be applicable in GST?
 Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess @ ` 400/- per tonne.
Q. 93. Whether closing balance of edu cess and secondary higher education cess prior to 1st March 2015 can be carried forward in GST?
 Ans. No it will not be carried forward in GST as it is not covered by definition of “eligible duties and taxes” under Section 140 of the CGST Act.
Q. 94. Can you clarify for 40% benefit on closing stock does 1 year limit apply or not ?
 Ans. Deemed credit will be available for all stock procured within

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GST — FAQ on Handicrafts dated 31-07-2017

GST — FAQ on Handicrafts dated 31-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Question 1 : How will imports be taxed under GST?
Answer : All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services.
Question 2 : How will exports be treated under GST?
Answer : All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid.
Question 3 : How can IGST be paid?
Answer : The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for pay

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an unutilized input tax credit be allowed as refund to exporters?
Answer : Yes. Section 54(3) of the CGST Act, 2017 provides for refund of any unutilised input tax credit of inputs and input services at the end of any tax period except where
(i)  goods exported out of the India are subjected to export duty; or
(ii)  the exporter claims drawback of CGST or refund of IGST paid on such export.
Question 6 : What is the procedure for claiming refund by exporters?
Answer : Refund can be claimed by filing an application electronically in prescribed form along with required documents through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner. The refundable amount shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. For details Chapter X of the CGST Rules, 2017 relating to refund may be referred to.
In c

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ax credit provisionally accepted will be refunded provisionally within seven days from the date of acknowledgement.
Question 8 : Will the principle of unjust enrichment apply to exports?
Answer : The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory.
Question 9 : Today under VAT/CST merchant-exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?
Answer : No, there is no such provision in GST. Tax will be payable on their inward supplies and they can claim refund of the accumulated ITC.
Question 10 : Whether goods sent by a taxable person to a job worker be treated as supply and will they be liable to GST?
Answer : No, the goods sent by a registered person to a job worker is not a supply, as there is no transfer of title and no consideration for the goods is involved. In terms of section 1

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p;Is a job worker required to take registration?
Answer : As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds the prescribed threshold of Rs. 20 lakhs or, as the case may be, Rs. 10 Lakhs.
Question 12 : Whether exemption from all duties of Customs be available on imports under exemption schemes such as EPCG, Advance licence, etc. under GST regime?
Answer : No. Exemption will be available only from Basic Customs Duty. IGST will be payable on such imports. However, the importer can avail ITC of IGST paid and utilise the same or claim refund in accordance with the provisions of the CGST Act, 2017 and rules made thereunder.
Question 13 : Can duty credit scrips received as incentive by exporters such as MEIS, SEIS, etc. be utilised for payment of all duties at the time of import?
Answer : No, these scrips can be utilised only for payment of Basic Custom

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of scrips has to be treated as supply of goods. GST at applicable rate will therefore be payable.
Question 16 : Would GST be payable on goods not intended to be sold, taken out for participation in overseas exhibitions and trade fairs and brought back into India as these goods are meant for exhibition only?
Answer : GST is not payable in such cases. Exporters will need exhibition participation letter and no foreign exchange involved letter from the concerned bank for the purpose of exchange control requirements. At the time of re-import, identity of goods imported with export goods needs to be established to seek exemption from import duty in accordance with Customs provisions. IGST will be exempted at the time of re-import in view of exemptions granted under Customs.
Question 17 : Will an exporter be required to pay GST in case of goods procured from unregistered persons?
Answer : In case of supply by an unregistered person, the registered person i.e., exporter

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FAQ on Health Services & Family Welfare dated 08-08-2017

FAQ on Health Services & Family Welfare dated 08-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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

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Simplification of the processes and overall reduction 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 thr

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FAQ on IGST refunds on goods exported out of India dated 23-02-2018

FAQ on IGST refunds on goods exported out of India dated 23-02-2018
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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 prescribe

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on payment of IGST are eligible to get the refund of integrated tax so paid subject to certain conditions related to filing of correct and sufficient information in both GSTN and Customs system.
Q.5 How to file application for getting IGST 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 r

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nderstood that cases where such validations fail are on account of :
(i)         Both GSTR-1/Table 6A and GSTR-3B have not been filed for that supply or there are missing invoices in GSTR-1 for that supply.
(ii)        Invoices provided in Table 6A of GSTR-1/1E are 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 refle

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thereafter transmitted electronically to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter's bank account as registered with the Customs authorities. 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 numb

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of shipping bill – invoice record from GSTN. The previous transmission would have already been validated for IGST refund by ICES.
Q.16 What should be done for error code SB005?
Ans. This is the most common error committed by the exporters, which occurs due to mis-match of invoice number as declared in the invoice table of the shipping bill and that declared in the GSTR-1 for the same supply. This 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 convey

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unds shall only be available as a onetime measure for the past SBs. It is advised that the exporters should take care so as not to repeat such mistakes in future and ensure that the same GST compliant export invoice is declared at both ends.
Q.17 What should be done for error code SB006?
Ans. In case of exports through ICDs, if the gateway EGM is not filed electronically or it contains some error, response code SB006 appears. It is noticed 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 opt

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00 (Successfully Validated) is the response code which comes when all the decided parameters like GSTIN, SB number, invoice number etc. match between GSTN and Customs databases. This code implies that the SB is ready for inclusion in the IGST refund scroll. However, it might happen that even with SB000, the SB does not appear in the refund scroll. This could be due to :
(i)   The exports might have been made under bond or LUT, hence not eligible for refund.
(ii)   If a shipping bill covers 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 zer

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n the final scroll, the exporters are advised to furnish correct bank account details to the proper officer (Customs field formation) in order to update the same in ICES.
(iv)  As the status of refund claims is available in ICEGATE login, in cases where the corrective action has been already taken by the exporter, he may write to ICEGATE/gateway port Customs for redressal.
(v)   in general, any grievance related to the IGST refund claim may be brought to the notice of the Pr. Commissioner or Commissioner of the Customs of the gateway port for necessary action.
Common Errors and Rectification Procedures
Code
Meaning
Rectification
SB000
Successfully validated
 
SB001
Invalid SB details
Amend GSTR-1 by using Form 9A and fill correct SB details
SB002
EGM not filed
Approach, shipping line for filing of EGM
SB003
GSTIN mismatch
Amend GSTR-1 by using Form 9A
SB004
Record already received and
validated
No action required
SB005
Invalid Invoice Number

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FAQ for GST on IT/ITES dated 18-08-2017

FAQ for GST on IT/ITES dated 18-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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 impli

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oftware code from individuals which he 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 entitl

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f service is outside India;
(4)        the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(5)        the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with explanation 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 locate

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ed to pay the consideration is immaterial.
Question 11 : I am an Indian Company who makes software and sells it outside the country. I have hired a firm (not a related party) 'C' located abroad to facilitate the supply of software in Europe and the USA; would I be liable to pay GST on the payments that I make to this entity abroad?
Answer : No. In this case, 'C' is covered by the definition of 'intermediary' [section 2(13) of the IGST Act, 2017]. The place of supply of such intermediary service 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

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convertible foreign exchange. Whether GST liability arises in this case?
Answer : You are an intermediary and the place of supply of the service provided by you to the principal is in India irrespective of the mode of payment. Hence, GST is payable on the services provided by you as an intermediary to the principal.
Question 14 : I have more than one SEZ unit in different States; do I need to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration?
Answer :
(1)        Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However, a single registration can be taken for all your SEZ 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

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p;I am obtaining online database access services from a company abroad over the net, would I have to pay tax on reverse charge?
Answer : The recipient, if registered, has to pay the applicable IGST on reverse charge basis. If the recipient is not registered, the matter is treated as an online information and database access or retrieval service (OIDAR) and the OIDAR service provider is liable to take registration and pay tax.
Question 18 : When would it be construed that I have made a supply of services involving temporary transfer or permitting the use or enjoyment of any intellectual property right?
Answer : Generally, the End User Licence Agreement (EULA) is the legal contract between a software application author or publisher and the user of that application 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

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oice is issued.
Question 20 : What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit?
Answer : As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced.
Question 21 : An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to 'D', 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

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f the supplier to the recipient, the supply could be visualized as consisting of two distinct supplies. First supply – the different branches of the supplier located across different States are making the supply to the main branch which entered into a contact or an agreement with the recipient for the supply of such service. Second supply – main branch is making a supply to the customer. GST is to be levied accordingly. In such a scenario, the main branch would get input tax credit of GST paid by the other branches on supplies made by them to the main branch.
Question 24 : In the scenario envisaged in previous question, the main branch is said to be entitled to ITC of the GST paid by the other branches. Thus, it is a revenue neutral situation. What are the valuation guidelines for such services?
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 de

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GST — FAQ on Mining dated 31-07-2017

GST — FAQ on Mining dated 31-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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 : Ca

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om unregistered suppliers. As the mine 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 l

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the same Permanent Account Number, to be computed 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 buye

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ce for supply of goods from a mining lease holder or 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

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to be made from various loading point and time. In such situation how 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 a

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of business, would be allowed as ITC.
Question 24 : What is the time limit 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, environme

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transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer 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

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be eligible to take ITC under GST?
Answer : Rigs, capitalized in the books of accounts as capital 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 :&ems

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g of returns, as huge mines are located throughout the districts in the country, especially in rural and backward 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 no

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will be able to distribute the available credit even if the invoices are received after the appointed day.
Question 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

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laimed as refund under the Central Excise Law.
Question 42. Whether credit of Green Cess (Clean Energy Cess) paid 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 Com

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te. Clarity on the same may be provided by the Government
Answer : Chapter 68 covers value added articles of sandstone etc. which 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

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FAQ on Railways dated 07/07/2017

FAQ on Railways dated 07/07/2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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

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roperty
* Sale of Scrap
Q. 6 In which class and category of trains, GST is applicable?
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.

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ls, defence and military equipments, etc.
* On Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways.
* On Inter-state movement of trains between stations/workshops/sheds/ depots, etc., for the purpose of :
(1)   Carrying goods or passengers or both; or
(2)   For repairs and maintenance;
Q. 13 How has Indian Railway registered in GST? How are the GST compliances ensured?
 Ans.  Ministry of Railway has initiated process of Registration in each State/UT. Provisional GSTIN numbers of Ministry of Railways in each State/UT are already notified. In each State/UT, General Manager of a Zonal Railway has been nominated as

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FAQ (short) on GST Registration dated 16-08-2017

FAQ (short) on GST Registration dated 16-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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.

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