Author: admin_gst

When exemption from whole of tax collected on goods or services or both has been granted absolutely, can a person pay tax?
Question 25
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 25. When exemption from whole of tax collected on goods or services or both has been granted absolutely, can a person pay tax?
Ans. No, the person supplying exempted goods or services or both shall not collect the tax in excess of the effective rate.
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Does the GST Law empower the Government to exempt supplies from the levy of GST?
Question 24
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 24. Does the GST Law empower the Government to exempt supplies from the levy of GST?
Ans. Yes. In the public interest, the Central or the State Government can exempt either wholly or partly, on the recommendations of the GST council, the supplies of goods or services or both from the levy of GST either abs

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What are the penal consequences if a person opts for the composition scheme in violation of the conditions?
Question 23
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 23. What are the penal consequences if a person opts for the composition scheme in violation of the conditions?
Ans. If a taxable person has paid tax under the composition scheme though he was not eligible for the scheme then the person would be liable to penalty and the provisio

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How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?
Question 22
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 22. How to compute 'aggregate turnover' to determine eligibility for composition scheme?
Ans. The methodology to compute aggregate turnover is given in Section 2(6). Accordingly, 'aggregate turnover' means value of all outward supplies (taxable supplies+exempt supplies+exports + inter-state supplie

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Can composition tax be collected from customers?
Question 21
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 21. Can composition tax be collected from

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Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit?
Question 20
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 20. Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit?
Ans. No, customer who buys goods from registered person who is under composition scheme is not eligible for composition inpu

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Can the registered person under composition scheme claim input tax credit?
Question 19
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 19. Can the reg

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Who are not eligible to opt for composition scheme?
Question 18
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 18. Who are not eligible to opt for composition scheme?
Ans. Broadly, five categories of registered person are not eligible to opt for the composition scheme. These are:
(i) supplier of services other than supplier of restaurant service;
(ii) supplier of goods which are not taxable under the CGST Act/SGST Act/UTGST Act.
(iii) an

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Can composition scheme be availed of by a manufacturer and a service supplier?
Question 17
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 17. Can composition scheme be availed of by a manufacturer and a service supplier?
Ans. Yes, a manufacturer can opt for composition scheme generally. However, a manufacturer of goods, which would be notified on the recommendations of the GST Council, cannot opt for this scheme. This scheme is not available f

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Will a taxable person, having multiple registrations, be eligible to opt for composition scheme only for a few of registrations?
Question 16
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 16. Will a taxable person, having multiple registrations, be eligible to opt for composition scheme only for a few of registrations?
Ans. All registered persons having the same Permanent Account Number (PAN) have to opt for composition scheme. If one register

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A person availing composition scheme during a financial year crosses the turnover of 50 Lakhs during the course of the year i.e. say he crosses the turnover of 50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?
Question 15
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 15. A person availing composition scheme during a financial year crosses the turnover of ₹ 50 L

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What are the rates of tax for composition scheme?
Question 14
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. What are the rates of tax for composition scheme?
Ans. There are different rates for different sectors. In normal cases of supplier of goods (i.e. traders), the composition rate is 0.5 % of the turnover in a State or Union territory. If the person opting for composition scheme is manufacturer, then the rate is 1% of the turnover in

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What is the threshold for opting to pay tax under the composition scheme?
Question 13
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. What is the threshold for opting to pay tax under the composition scheme?
Ans. The threshold for composition scheme is ₹ 50 Lakhs of aggregate turnover in the preceding financial year. The benefit of composition scheme can be availed up to the turnover of ₹ 50 Lakhs in current financial year.
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Can any person other than the supplier or recipient be liable to pay tax under GST?
Question 12
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. Can any person other than the supplier or recipient be liable to pay tax under GST?
Ans. Yes, the Central/State government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act

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What will be the implications in case of receipt of supply from unregistered persons?
Question 11
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. What will be the implications in case of receipt of supply from unregistered persons?
Ans. In case of receipt of supply from an unregistered person, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism.
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Statute, statutory provis

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Is the reverse charge mechanism applicable only to services?
Question 10
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. Is the reverse charge mec

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What is meant by Reverse Charge?
Question 9
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. What is meant by Reverse Charge?
Ans. It means the li

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Are all goods and services taxable under GST?
Question 8
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. Are all goods and services taxable under GST?
Ans. Supplies of all goods and services are taxable except alcoholic liquor for human consumption. Supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be taxable with effect from a future date. This date would be no

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What is the treatment of composite supply and mixed supply under GST?
Question 7
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. What is the treatment of composite supply and mixed supply under GST?
Ans. Composite supply shall be treated as supply of the principal supply. Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax.
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Statute, statutory provisions legislation, law,

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What are composite supply and mixed supply? How are these two different from each other?
Question 6
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. What are composite supply and mixed supply? How are these two different from each other?
Ans. Composite supply is a supply consisting of two or more taxable supplies of goods or services or both or any combination thereof, which are bundled in natural course and are supplied in conjunction with e

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Who can notify a transaction to be supply of goods or services?
Question 5
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. Who can notify a transaction to be supply of goods or services?
Ans. Central Government or State Government, on the recommendations of the GST Council, can notify an activity to be the supply of goods and not supply of services or supply of services and not supply of goods or neither a supply of goods nor a supply of ser

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Will giving away essential commodities by a charitable institution be taxable activity?
Question 4
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. Will giving away essential commodities by a charitable institution be taxable activity?
Ans. In order to be a supply which is taxable under GST, the transaction should be in the course or furtherance of business. As there is no quid pro quo involved in supply for charitable activities, it is not a

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Whether supplies made without consideration will also come within the purview of supply under GST?
Question 3
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. Whether supplies made without consideration will also come within the purview of supply under GST?
Ans. Yes, but only those activities which are specified in Schedule I to the CGST Act / SGST Act. The said provision has been adopted in IGST Act as well as in UTGST Act also.
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Stat

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What is the taxable event under GST?
Question 2
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. What is the taxable event under GST?
Ans. Taxable

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Where is the power to levy GST derived from?
Question 1
Bill
Levy of and Exemption from Tax
Faq On GST (2nd Edition) Dated 31.3.2017
2. Levy of and Exemption from Tax
Q 1. Where is the power to levy GST derived from?
Ans. Article 246A of the Constitution, which was introduced by the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both, Parliament and State Legislatures to make laws with respect to GST i.e. central tax (CGST) and state tax (SGST) or un

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