Author: admin_gst

Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Question 15
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?
Ans. Works contract and catering services shall be treated as supply of service as specified in Schedule-II of MGL.
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Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?
Question 14
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?
Ans. Transfer of right to use goods shall be treated as supply of service because there is no transfer of title in such supplies. Such transactions are specifically treated as s

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What are inter-state supplies and intra-state supplies?
Question 13
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What are inter-state supplies and intra-state supplies?
Ans. Inter-state and intra-state supplies have specifically been defined in Section 3 & 3A of IGST Act respectively. Broadly, where the location of the supplier and the place of supply are in same state it will be intra-state and where it is in different states it wi

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Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?
Question 12
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?
Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is

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A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Question 11
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Ans Yes. As per Schedule-I (1) business assets put to a pri

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An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.
Question 10
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL? Give reasons for the answer.
Ans. No, because supply is not made by the individu

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What do you mean by “supply made in the course or furtherance of business”?
Question 9
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. What do you mean by “supply made in the course or furtherance of business”?
Ans. No definition or test as to whether the activity is in the course or furtherance of business has been specified under the MGL. However, the following business test is normally applied to arrive at a conclusion whether a

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Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Question 8
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction w

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Are self-supplies taxable under GST?
Question 7
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Are self-supplies taxable under GST?
Ans. Inter-state self-supplies such as stock transfers will be taxable as a taxable person has to take state wise registration in terms of Schedule 1(5). Such transactions have been made taxable even if there is no consideration. However, intra-state self-supplies are not taxable.
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Importation of Goods is conspicuous by its absence in Section 3. Why?
Question 6
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Importation of Goods is conspicuous by its absence in Section 3. Why?
Ans. Importation of goods is dealt separately under the Customs Act, 1962, wherein IGST shall be levied as additional duty of customs in addition to basic customs duty.
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Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Question 5
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Ans. Yes. Under certain circumstances such as importation of service (Section 3(1) (b)) or supplies made without consideration, speci

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What are the necessary elements that constitute supply under MGL?
Question 4
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What are the necessary elements that constitute supply under MGL?
Ans. In order to constitute a 'supply', the following elements are required to be satisfied, i.e.-
(i) supply of goods and / or services;
(ii) supply is for a consideration;
(iii) supply is made in the course or furtherance of business;
(iv)

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What is a taxable supply?
Question 3
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What is a taxable supply?
Ans. A 'taxable supply' means

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What is the meaning of ‘Supply’?
Question 2
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is the meaning of 'Supply'?
Ans. The term 'supply' is wide in its import and includes all forms of supply of goods and / or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of se

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What is the taxable event under GST?
Question 1
Bill
Meaning and Scope of Supply
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is the taxable event under GST?
Ans. The taxable event under GST shall be the supply of goods and / or services made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as 'su

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Can the registration certificate be downloaded from the GSTN portal?
Question 43
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 43. Can the registration certi

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Will there be any communication related to the application disposal?
Question 42
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 42. Will there be any communication related to the application disposal?
Ans. The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage.
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What is the process of refusal of registration?
Question 41
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 41. What is the process of refusal of registration?
Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (10) of section 19 of MGL, any rejection of application for regis

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What will be the time of response by the applicant if any query is raised in the online application?
Question 40
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 40. What will be the time of response by the applicant if any query is raised in the online application?
Ans. If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant and to the other tax authority t

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What will be the time limit for the decision on the online application?
Question 39
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 39. What will be the time limit for the decision on the online application?
Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall approve the application and communicate the approval to the common portal within three common working days. The portal will then automa

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Is there any facility for digital signature in the GSTN registration?
Question 38
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 38. Is there any facility for digital signature in the GSTN registration?
Ans. Taxpayers would have the option to sign the submitted application using valid digital signatures (if the applicant is required to obtain DSC under any other prevalent law then he will have to submit his registration application using the same). For

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Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?
Question 37
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 37. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?
Ans. In order to cater to the needs of taxpayers who are not IT savvy, following facilities shall be made available:-
Tax Return Preparer (TRP): A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will prepare the said registration document / return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of inform

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At the time of registration will the assessee have to declare all his places of business?
Question 36
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 36. At the time of registration will the assessee have to declare all his places of business?
Ans. Yes. The principal place of business and place of business have been separately defined under section 2(78) & 2(75) of MGL respectively. The taxpayer will have to declare the principal place of business as wel

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Whether the goods will be permitted to be supplied from the place of business of a job worker?
Question 35
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 35. Whether the goods will be permitted to be supplied from the place of business of a job worker?
Ans. Yes. But only in cases where the job worker is registered or the principal declares the place of business of the job worker as his additional place of business.
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Whether the job worker will have to be compulsorily registered?
Question 34
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 34. Whether the job worker will hav

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