What is the time period within which the capital goods sent for job work has to be received back by the principal?
Question 21
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on D
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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?
Question 20
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. 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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Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Question 19
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Ans. Yes, the principal has to reverse the credit along with interest on inputs which have not been received back from j
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What is the time period within which the inputs sent for job work has to be received back by the principal?
Question 18
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Mo
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Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Question 17
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Ans. Yes, the principal is eligible to avail the input tax credit on inputs sent to job worker for job work in terms of Section 16A(2) of the MGL.
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Statute, statutory provisions
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When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?
Question 16
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?
Ans. As pe
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Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..
Question 15
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..
A
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Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is he eligible for ITC?
Question 14
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is
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A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Question 13
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Ans. As per section 16(3) of the MGL, he can avail ITC in respect of inputs he
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What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?
Question 12
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?
Ans. As per section 16(12) of the MGL, the registered taxable person, who was paying tax
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What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
Question 11
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
Ans. As per section 16(12) of the MGL, the registered taxable person who supplies goods and / or services
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What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?
Question 10
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?
Ans. As per section 16(8) of the MGL, the transferor shall be allowed to transfer the input tax credit that remains unutilized in its books of accou
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Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?
Question 9
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?
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Where goods and/or services 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 8
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Where goods and/or services 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?
An
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What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Question 7
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Ans. As per section 16(2A) of MGL, the person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in sem
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A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….
Question 6
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….
An
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What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration? (Section 16(2))
Question 5
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has bee
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Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Question 4
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Ans. Yes, in terms of section 2(54), 2(55) & 2(20) of the MGL respectively. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one instalmen
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Can GST paid on reverse charge be considered as input tax?
Question 3
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Can GST paid on reverse charge be considered as input tax?
Ans. Yes. The definition of input tax includes the tax payable under sub-section (3) of section 7 (Reverse Charge). The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.
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What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Question 2
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Ans. It implies that input tax consists of IGST & CGST in CGST Act and IGST & SGST in SGST Act. In the IGST Act, input tax consists of all three taxes namely, IGST, CGST and
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What is input tax?
Question 1
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is input tax?
Ans. “Input tax” has been defined in section 2 (57) of the MGL and section 2 (1) (d) of the IGST Act. Input tax in relation to a taxable person, means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or f
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Are the provisions of job-work applicable to all category of goods?
Question 9
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Are the provisions of job-work applicable to all category of goods?
Ans. No. The provisions relating to job-work are applicable only when registered taxable person intends to send taxable goods. In other words, these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered
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What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job-worker?
Question 8
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job-worker?
Ans. In the MGL, aspects relating to taking input tax credit in respect of inputs/capital goods sent for job-work have been specifically dealt in Section 16A, which provides that the credi
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Under what circumstances can the principal directly supply goods from the premises of job-worker?
Question 7
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Under what circumstances can the principal directly supply goods from the premises of job-worker?
Ans. The goods can be supplied directly from the place of business of job-worker without declaring it as additional place of business in two circumstances namely where the job-worker is a registered taxab
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Can the principal supply the goods directly from the premises of the job-worker without bringing it back to his own premises?
Question 6
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Can the principal supply the goods directly from the premises of the job-worker without bringing it back to his own premises?
Ans. Yes but with a rider that the principal should have declared the premises of such job-worker as his additional place of business or where the j
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