Author: admin_gst

It is not possible many a times to establish a one-to-one link between quantum of input services used in the course or furtherance of business by a supplier. In such situations, how distribution of ITC by the ISD is to be done?
Question 5
Bill
Concept of Input Service Distributor in GST
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. It is not possible many a times to establish a one-to-one link between quantum of input services used in the course or furtherance of business by

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Can an ISD distribute the input tax credit to all suppliers?
Question 4
Bill
Concept of Input Service Distributor in GST
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. Can an ISD distribute the input tax credit to all suppliers?
Ans. No. The input tax credit of input services shall be distributed only amongst those registered persons who have used the input services in the course or furtherance of business.
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What are the documents for distribution of credit by ISD?
Question 3
Bill
Concept of Input Service Distributor in GST
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. What are the documents for distribution of credit by ISD?
Ans. The distribution of credit would be done through a document especially designed for this purpose. The said document would contain the amount of input tax credit being distributed.
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What are the requirements for registration as ISD?
Question 2
Bill
Concept of Input Service Distributor in GST
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. What are the requirements for registration as ISD?
Ans. An ISD is required to obtain a separate registration even though it may be separately registered. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime (i.e. under Service Tax) would not be migrated in GST r

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What is Input Service Distributor (ISD)?
Question 1
Bill
Concept of Input Service Distributor in GST
Faq On GST (2nd Edition) Dated 31.3.2017
11. Concept of Input Service Distributor in GST
Q 1. What is Input Service Distributor (ISD)?
Ans. ISD means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State ta

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What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods?
Question 34
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 34. What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods?
Ans. The registered person would pay an amount equal to ITC reduced by prescribed percentage point or tax on the transaction value, whichever is higher. But in

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What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?
Question 33
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 33. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?
Ans. In case of supply of capital goods or plant and machinery on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken o

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Can provisionally allowed ITC be used for payment of all liabilities?
Question 32
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 32. Can provisionally allowed ITC

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Is input tax credit allowed only after matching?
Question 31
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 31. Is input tax credit allowed only after matching?
Ans. No, input tax credit is allowed provisionally for two months. The supply details are matched by the system and discrepancies are communicated to concerned supplier and recipient. In case mismatch continues, the ITC taken would be reversed automatically.
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What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return?
Question 30
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 30. What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return?
Ans. In case of mismatch, the communication would be made to

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Is there any restriction on period for availment of ITC?
Question 29
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 29. Is there any restriction on period for availment of ITC?
Ans. In cases of new registration, change from composition to normal scheme, from exempt to taxable supplies, the concerned person cannot avail ITC after the expiry of one year from the date of issue of tax invoice relating to such supply.
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What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt?
Question 28
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 28. What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt?
Ans. The registered person has to

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Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on…………..
Question 27
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 27. Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on…………..
Ans. Mr. B i

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Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC?
Question 26
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 26. Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC?

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Are there any special provisions in respect of banking companies?
Question 25
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 25. Are there any special provisions in respect of banking companies?
Ans. A banking company or a financial institution including a non-banking financial company engaged in supply of specified services would either avail proportionate credit or avail 50% of the eligible input tax credit.
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A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Question 24
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Ans. He can avail ITC in respect of inputs held in stock and inputs contained

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Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person?
Question 23
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 23. Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person?
Ans. The input tax cre

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Which of the following is included for computation of taxable supplies for the purpose of availing credit?
Question 22
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. Which of the following is included for computation of taxable supplies for the purpose of availing credit?
(a) Zero-rated supplies
(b) Exempt supplies
(c) Both
Ans. Zero rated supplies.
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If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?
Question 21
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?
Ans. Zero-rated suppli

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Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
Question 20
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

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What would be input tax eligibility in cases where there is a change in the constitution of a registered person?
Question 19
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. What would be input tax eligibility in cases where there is a change in the constitution of a registered person?
Ans. The registered person shall be allowed to transfer the input tax credit that remains unutilized in its electronic credit ledger to the new entity, provided that there

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What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Question 18
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Ans. The person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi- finished goods and finished goods

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A person becomes liable to pay tax on 1st August, 2017and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on:
Question 17
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. A person becomes liable to pay tax on 1st August, 2017and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on:
(a) 1st August, 2017
(b) 31st Ju

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What is the ITC entitlement of a newly registered person?
Question 16
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. What is the ITC entitlement of a newly registered person?
Ans. A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semifinished or finished goods held in stock on the day immediately preceding the date of grant of registration. If the person was liable to take registration and he ha

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Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes?
Question 15
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes?
Ans. No. ITC on goods or services by a person for construction of immovable property, other than plant and machinery, is not allowed. Plant and mach

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