Author: admin_gst

What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?

What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?
Question 11
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?
Ans. At any stage, but before September of the next financial year,

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What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?

What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?
Question 10
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?
Ans. If invoices in GSTR-2 do not match with invoices in counter-party GSTR-1, the ITC will be reversed if the mismatch continues

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Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?

Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?
Question 9
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?
Ans. While a large part of GSTR-2 will be auto-populated, there are some details that only recipient can fill like details of imports, details of purchas

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Can a recipient feed information in his GSTR-2 which has been missed by the supplier?

Can a recipient feed information in his GSTR-2 which has been missed by the supplier?
Question 8
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Can a recipient feed information in his GSTR-2 which has been missed by the supplier?
Ans Yes, the recipient can himself feed the invoices not uploaded by his supplier. The credit on such invoices will also be given provisionally but will be subject to matching. On matchin

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Whether value for each transaction will have to be fed? What if no consideration?

Whether value for each transaction will have to be fed? What if no consideration?
Question 7
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Whether value for each transaction will have to be fed? What if no consideration?
Ans. Yes. Not only value but taxable value will also have to be fed. In some cases both may be different.
In case there is no consideration, but it is supply by virtue of schedule 1, the taxable

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Whether description of each item in the invoice will have to be uploaded?

Whether description of each item in the invoice will have to be uploaded?
Question 6
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Whether description of each item in the invoice will have to be uploaded?
Ans. No. In fact description will not have to be uploaded. Only HSN code in respect of supply of goods and Accounting code in respect of supply of services will have to be fed. The minimum number of digits that

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Whether all invoices will have to be uploaded?

Whether all invoices will have to be uploaded?
Question 5
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Whether all invoices will have to be uploaded?
Ans. No. It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.
For B2B supplies, all invoices, whether Intra-state or Interstate supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching

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Is the scanned copy of invoices to be uploaded along with GSTR-1?

Is the scanned copy of invoices to be uploaded along with GSTR-1?
Question 4
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Is the scanned copy of invoices to be uploaded along with GSTR-1?
Ans. No, scanned copy of invoices is to be uploaded. Only certain prescribed fields of information from invoices need to be uploaded.
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, T

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What type of outward supply details are to be filed in the return?

What type of outward supply details are to be filed in the return?
Question 3
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What type of outward supply details are to be filed in the return?
Ans. A normal registered taxpayer has to file the outward supply details in GSTR-1 in relation to various types of supplies made in a month, namely outward supplies to registered persons, outward supplies to unregistered pers

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Who needs to file Return in GST regime?

Who needs to file Return in GST regime?
Question 2
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Who needs to file Return in GST regime?
Ans. Every registered taxable person – who crosses the threshold limit for payment of taxes. A supplier needs to be registered when the aggregate turnover crosses Rs. nine lacs but he become taxable person ONLY when he crosses Rs. ten lacs. So he will be required to file returns

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What is the purpose of returns?

What is the purpose of returns?
Question 1
Bill
Returns Process and matching of Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the purpose of returns?
Ans.
a) Mode for transfer of information to tax administration;
b) Compliance verification program of tax administration;
c) Finalization of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary in

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What are the consequences of credit distributed in contravention of the provisions of the Act?

What are the consequences of credit distributed in contravention of the provisions of the Act?
Question 17
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. What are the consequences of credit distributed in contravention of the provisions of the Act?
Ans. The credit distributed in contravention of provisions of Act could be recovered from the unit to which it is distributed along with interest.
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Statute, statutory

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The credit of tax paid on input service used by more than one supplier is ________ (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. (b) Distributed equally among all the suppliers. (c)

The credit of tax paid on input service used by more than one supplier is ________ (a) Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. (b) Distributed equally among all the suppliers. (c) Distributed only to one supplier. (d) Cannot be distributed.
Question 15
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. The credit of tax paid on input service used by more than

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How to distribute common credit among all the units of an ISD?

How to distribute common credit among all the units of an ISD?
Question 12
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. How to distribute common credit among all the units of an ISD?
Ans. The common credit used by all the units can be distributed by ISD on pro rata basis i.e. based on the turnover of each unit to the aggregate turnover of all the units to which credit is distributed.
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Statute, statutory provisi

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What are the documents through which the credit can be distributed by an ISD?

What are the documents through which the credit can be distributed by an ISD?
Question 11
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What are the documents through which the credit can be distributed by an ISD?
Ans. The document under which the credit can be distributed is yet to be prescribed. The Act provides that the credit can be distributed only through prescribed document.
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Statute, statutory provisions

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Whether SGST credit can be distributed as IGST credit by an ISD to units located in different States?

Whether SGST credit can be distributed as IGST credit by an ISD to units located in different States?
Question 8
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether SGST credit can be distributed as IGST credit by an ISD to units located in different States?
Ans. Yes, an ISD can distribute SGST credit as IGST for the units located in different States.(Section 17(2)
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Statute, statutory provisions legislation, la

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Whether CGST and IGST credit can be distributed by ISD as IGST credit to units located in different States?

Whether CGST and IGST credit can be distributed by ISD as IGST credit to units located in different States?
Question 7
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Whether CGST and IGST credit can be distributed by ISD as IGST credit to units located in different States?
Ans. Yes, CGST credit can be distributed as IGST and IGST credit can be distributed as IGST by an ISD for the units located in different States (Sect

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What are the provisions for recovery of excess/ wrongly distributed credit by ISD?

What are the provisions for recovery of excess/ wrongly distributed credit by ISD?
Question 6
Bill
Concept of Input Service Distributor in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. What are the provisions for recovery of excess/ wrongly distributed credit by ISD?
Ans. Sections 18(1) and 18(2) provide for recovery of excess/wrongly distributed credit by initiating action against the ISD itself or against the recipient of credit so distributed under section 51

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