Author: admin_gst

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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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxati

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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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Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?
Question 14
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?
Ans. No, a person cannot take ITC with respect to goods lost, stolen, destroyed or written off. In addition, ITC with respect of goods given as gifts or free samples are al

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A taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle?
Question 13
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 13. A taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehic

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Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST?
Question 12
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST?
Ans. Yes, except a small list of items provided in the law, the credit is admissible on all items. The list covers mainly items of personal consumption, inputs use of which r

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Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Question 11
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Ans. The

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What is the time limit for taking ITC and reasons therefor?
Question 10
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. What is the time limit for taking ITC and reasons therefor?
Ans. A registered person cannot take ITC in respect of any invoice or debit note for supply of goods or services after the due date for furnishing the return under section 39 for the month of September following the end of financial year to which such invoice/invoice relating t

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Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to ’scenarios)?
Question 9
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. Who will get the ITC where goods have been delivered to a person other than taxable person ('bill to'- 'ship to 'scenarios)?
Ans. It would be deemed that the registered person has received the goods when the goods have been delivered to a third party on the direction

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