Author: admin_gst

Can a manufacturer transfer finished goods sent for testing purpose to the premises of any other taxable person
Question 11
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. Can a manufacturer transfer finished goods sent for testing purpose to the premises of any other taxable person?
Ans. Yes, a manufacturer can as per the provisions of the earlier law transfer the said goods to the premises of any registered taxable person on payment of t

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Whether in an appeal the FAA can pass an order enhancing the quantum ofduty/fine/penalty/reduce the amount of refund/ITC from the one passed by the original authority?
Question 10
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Whether in an appeal the FAA can pass an order enhancing the quantum ofduty/fine/penalty/reduce the amount of refund/ITC from the one passed by the original authority?
Ans. The FAA is empoweredto pass a

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What happens if the job worker does not return the goods within the specified time
Question 10
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What happens if the job worker does not return the goods within the specified time?
Ans. Tax would be payable by the job worker. Further, the manufacturer will also be liable to pay tax on expiry of the specified time limit – section 150 (1) & section 151(1).
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Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the earlier law are returned after completion of job work after the appointed day
Question 9
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the earlier law are returned after completion of job work

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What is the amount in dispute?
Question 9
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What is the amount in dispute?
Ans. As per explanation to Section 79(6) of MGL, the expression “amount in dispute” shall include-
(i) amount determined under section 46 or 47 or 48 or 51;
(ii) amount payable under rule-of the GST Credit Rules 201…; and
(iii) amount of fee levied or penalty imposed.
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Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within 6 months? If, say, goods are returned in GST by a buyer after 6 months of sales, will it become taxable in CST or GST
Question 8
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within 6 months? If, say, goods are returned in GST by a buyer after

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What is the amount of mandatory pre-deposit which should be made alongwith every appeal?
Question 8
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What is the amount of mandatory pre-deposit which should be made alongwith every appeal?
Ans. 10% of amount in dispute (however, for SGST, there are additional provisions for which the model law may be referred to, see question no 12 and 13).
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A registered taxable person has 1000 ITC credited to his electronic credit ledger from the last return under the earlier law. Now, he switches over to composition scheme in GST, will he get refund of that ITC.
Question 7
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. A registered taxable person has ₹ 1000 ITC credited to his electronic credit ledger from the last return under the earlier law. Now, he switches over to composition schem

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The order passed by First Appellate Authority has to be communicated to whom?
Question 7
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. The order passed by First Appellate Authority has to be communicated to whom?
Ans. First appellate authority has to communicate the copy of order to the appellant and the adjudicating authority with a copy to jurisdictional Commissioner of CGST and SGST.
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Will ITC be allowed to a service provider on VAT paid inputs held as stock on the appointed day
Question 6
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GS

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Whether the first appellate authority has any powers to allow additional grounds not specified in the appeal memo?
Question 6
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Whether the first appellate authority has any powers to allow additional grounds not specified in the appeal memo?
Ans. Yes. He has the powers to allow additional grounds if he is satisfied that the omission was not wilful or unreasonable.
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Give two examples of registered taxable persons who were not liable to be registered under the earlier law but are required to be registered under GST
Question 5
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Give two examples of registered taxable persons who were not liable to be registered under the earlier law but are required to be registered under GST?
Ans. A manufacturer having a turnover of say ₹ 60 lakhs was enjoying SSI exe

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Assuming such a person wrongly enjoyed the credit, will the recovery be done in GST or earlier law
Question 4
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Assuming such a person wrongly enjoyed the credit, will the recovery be done in GST or earlier law?
Ans. The recovery relating to ITC wrongfully enjoyed will be done under GST only – section 143 to 146.
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Whether the first appellate authority has any powers to condone the delay in filing appeal?
Question 5
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Whether the first appellate authority has any powers to condone the delay in filing appeal?
Ans. Yes. He can condone a delay of upto one month from the end of the prescribed period of 3 months for filing the appeal (3+1), provided there is “sufficient cause” as laid down in the p

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VAT credit was not available on items 'X' & 'Y' as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now?
Question 3
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. VAT credit was not available on items 'X' & 'Y' as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now?
Ans. He shall be entitled to credit only

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A registered taxable person say, purchases capital goods in the last quarter of 2016-17. Though the invoice is received within 31st March but the capital goods are received on 5th April, 2017 (i.e. in GST regime). Will such a person get full credit of CENVAT in 2017-18?
Question 2
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. A registered taxable person say, purchases capital goods in the last quarter of 2016-17. Though the invoice is rece

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Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?
Question 1
Bill
Transitional Provisions
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?
Ans. Yes, the registered taxable person shall be entitled to such credit and it will get credited to his electronic credit ledger – section 143.
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Whether this time limit applies even for the departmental appeal/application filed consequent to order of Commissioner of CGST?
Question 4
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Whether this time limit applies even for the departmental appeal/application filed consequent to order of Commissioner of CGST?
Ans. Yes. It applies even for such applications filed which are to be treated as appeal and all the provisions of ap

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What is the time limit to file appeal to First Appellate Authority?
Question 3
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What

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When Commissioner of CGST feels that the order passed is not legal and proper, whether he can revise the order himself?
Question 2
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. When Commissioner of CGST feels that the order passed is not legal and proper, whether he can revise the order himself ?.
Ans. No. The Commissioner of CGST cannot revise the order. In the model law, for CGST and SGST, there are different provisions in

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Whether any person aggrieved by any order or decision passed against him has the right to appeal?
Question 1
Bill
Appeals, Review and Revision in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. Whether any person aggrieved by any order or decision passed against him has the right to appeal?
Ans. Yes. Any person aggrieved by any order or decision passed against him has the right to appeal. It must be an order or decision passed by an “adjudicating authority”.
Howe

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What happens when the estate of a taxable person is under the control of Court of Wards?
Question 20
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. What happens when the estate of a taxable person is under the control of Court of Wards?
Ans. Where the estate of a taxable person owning a business in respect of which any tax, interest or penalty is payable is under the control of the Court of Wards/Administrator General / Official Trustee / Re

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What happens to the tax liability of a taxable person, whose business is carried on by any guardian / trustee or agent of a minor?
Question 19
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. What happens to the tax liability of a taxable person, whose business is carried on by any guardian / trustee or agent of a minor?
Ans. Where the business in respect of which any tax is payable is carried on by any guardian / trustee / agent of a minor or

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What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax?
Question 18
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax?
Ans. Partners of any firm shall jointly and severally liable for payment of any tax, interest or penalty. Firm/ partner shall intimate the retirement of any partner to the Commissioner by a no

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What happens to tax dues where the Company (taxable person) goes into liquidation?
Question 17
Bill
Demands and Recovery
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. What happens to tax dues where the Company (taxable person) goes into liquidation?
Ans. When any company is wound up and any tax or other dues determined whether before or after liquidation that remains unrecovered, every person who was a director of the company during the period for which the tax was

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