Author: admin_gst

Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?
Question 9
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?
Ans. It is the date of credit to the

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What happens if the taxable person files the return but does not make payment of tax?
Question 8
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What happens if the taxable person files the return but does not make payment of tax?
Ans. In such cases, the return is not considered as a valid return. Section 27 (3) of the MGL provides that the return furnished by a taxable person shall not be treated as valid return unless the full tax due as per t

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Whether time limit for payment of tax can be extended or paid in monthly installments?
Question 7
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Whether time limit for payment of tax can be extended or paid in monthly installments?
Ans. No, this is not permitted in case of self-assessed liability. In other cases, competent authority has been empowered to extend the time period or allow payment in installments. (Section 55 of MGL).
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When is payment of taxes to be made by the Supplier?
Question 6
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. When is payment of taxes to be made by the Supplier?
Ans. Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant

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How can payment be done?
Question 5
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. How can payment be done?
Ans. Payment can be done by the following methods:
(i) Through debit of Credit Ledger of the taxpayer maintained on the Common Portal- ONLY Tax can be paid. Interest, Penalty and Fees cannot be paid by debit in the credit ledger..
Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize the same

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What are the main features of GST payment process?
Question 4
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What are the main features of GST payment process?
Ans. The payment processes under proposed GST regime will have the following features:
* Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;
* Facilitation for the taxpayer by providing hassle free, anytime, anywhe

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When is GST payment to be done by the taxable person?
Question 3
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. When is GST payment to be done by the taxable person?
Ans. At the time of supply of Goods as explained in Section 12 and at the time of supply of services as explained in Section 13. The time is generally the earliest of one of the three events, namely receiving payment, issuance of invoice or completion of supply. Different situation

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Who is liable to pay GST?
Question 2
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Who is liable to pay GST?
Ans. In general the supplier of goods or service is liable to pay GST. However in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism. Further, in some cases, the liability to pay is on the third person (say in the case of e-commerce operator responsible

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What are the Payments to be made in GST regime?
Question 1
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What are the Payments to be made in GST regime?
Ans. In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST, going into the account of the Central Government) and the State GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IG

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What are the inclusions specified in Section 15(2) which could be added to Transaction Value?
Question 13
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What are the inclusions specified in Section 15(2) which could be added to Transaction Value?
Ans. The inclusions specified in Section 15(2) which could be added to Transaction Value are as follows:
a) Any amounts paid by recipient that are obligation of supplier to pay;
b) Money value of go

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What are the methods provided for determining the value, in terms of draft GST Valuation Rules?
Question 12
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What are the methods provided for determining the value, in terms of draft GST Valuation Rules?
Ans. Three methods are prescribed under GST Valuation Rules for determining the transaction value i.e., comparative method, computation method and residual method, which are required to be followed

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FM: Infrastructure is key to growth of economy; An institutionalized forum amongst BRICS countries could serve as a regional knowledge hub with exchange of information facilitated through cloud sharing and other electronic methods.
News and Press Release
Dated:- 22-9-2016

Press Information Bureau
Government of India
Ministry of Finance
22-September-2016 13:51 IST
The Union Finance Minister Shri Arun Jaitley said that infrastructure is key to growth of economy. Shri Jaitley said that an institutionalized forum amongst BRICS countries could serve as a regional knowledge hub with exchange of information facilitated through cloud sharing, and other electronic methods. Shri Jaitley said that projects in transportation sector li

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st the Indian Economy like Make in India, 100 smart cities, and liberalised FDI regime. He said that the Government gives high priority to Infrastructure and have taken a number of policy decisions like NIIF, Innovative new financial instruments such as REITS, INVITS, IDFs. He stressed the need for BRICS member countries to share their experiences in financing and delivery of infra projects so that they can collectively move to higher quality and efficiency in the delivery of public services.
Earlier in his welcome address, Secretary, Department of Economic Affairs, Shri Shaktikanta Das said that infrastructure financing, especially in clearly demarketed projects is the need of the hour. He said that National Investment and Infrastructure

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elegates from BRICS countries and senior officers of the Ministry of Finance alongwith senior executives of the private sector are also participating in the one-day seminar organised in the national capital by Department of Economic Affairs, Ministry of Finance, Government of India with the organisational support of Confederatin of Indian Industries (CII).
India assumed the Chairmanship of the BRICS in 2016. As part of the run up to the BRICS Summit scheduled for October, 2016, a number of events are being organised. The Seminar is a part of these events and aims at knowledge sharing amongst BRICS Countries on best practices in Public Private Partnerships (PPPs) and catalysing innovative Long-term Infrastructure Financing.
The Seminar bro

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What are the reasons for doubting transaction value declared?
Question 11
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What are the reasons for doubting transaction value declared?
Ans. The reasons have been indicated in Rule 7(b) of the draft GST Valuation Rules. It is:- (i) comparable supplies are at significantly higher value; (ii) transaction is at significantly lower or higher than market value of supplies; and (iii) misdeclaration in par

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When are Valuation Rules applicable?
Question 10
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. When are Valuation Rules applicable?
Ans. Valuation R

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Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?
Question 9
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?
Ans. No, provided it is allowed in the course of normal trade practice and has been duly recorded in the invoice.
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Statute, statutory provisions legislation, law, ena

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Whether post-supply discounts or incentives are to be included in the transaction value?
Question 8
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether post-supply discounts or incentives are to be included in the transaction value?
Ans. Yes. Unless the post-supply discount is established as per the agreement and is known at or before the time of supply and specifically linked to relevant invoice.
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Statute, statutory provisions legislati

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Can the transaction value declared under section 15(1) be accepted?
Question 7
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Can the transaction value declared under section 15(1) be accepted?
Ans. Yes, it can be accepted after examining for inclusions in section 15(2). Furthermore, the transaction value can be accepted even where the supplier and recipient are related, provided the relationship has not influenced the price. (Rule 3(4) of draft

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What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?
Question 6
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?
Ans. Section 15(2) provides the list of adjustments that may be made to make the price of a transaction reliable for purposes of determining tax payable

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Is reference to Valuation Rules required in all cases?
Question 5
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Is reference to Valuation Rules required in all cases?
Ans. No. Reference to Valuation Rules is required only in cases listed under section 15(4) i.e., where consideration payable is not money, or parties to the transaction are related.
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation

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Is contract price not sufficient to determine valuation of supply?
Question 4
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Is contract price not sufficient to determine valuation of supply?
Ans. Contract price is more specifically referred to as 'transaction value' and that is the basis for computing tax. However, when the price is influenced by some factors like relationship of parties or certain transactions are deemed to be supply, which do

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Are there separate valuation provisions for CGST, SGST and IGST and Goods and Services?
Question 3
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Are t

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What is transaction value?
Question 2
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is transaction value?
Ans. Transaction value refers to the price actually paid or payable for the supply of goods and or services where the supplier and the recipient are not related and price is the sole consideration for the supply. It includes any amount which the supplier is liable to pay but which has been incurred by the recipient of the supply.
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What is the value of taxable supply to be adopted for the levy of GST?
Question 1
Bill
Valuation in GST
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the value of taxable supply to be adopted for the levy of GST?
Ans. The value of taxable supply of goods and services shall ordinarily be 'the transaction value' which is the actually the price paid or payable, when the parties are not related and price is the sole consideration. The MGL further elaborates vario

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Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?
Question 14
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Let's say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued be

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What will be the time of supply in continuous supply of services?
Question 13
Bill
Time of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What will be the time of supply in continuous supply of services?
Ans. The time of supply shall be the due date of payment, if ascertainable from the contract. If not ascertainable, it will be earliest of date of receipt of payment or the date of issue of invoice or completion of event where payment is linked to completion o

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