Author: admin_gst

What is the time limit for taking a Registration under Model GST Law?
Question 7
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What is the time limit for taking a Registration under Model GST Law?
Ans. Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.
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Which are the cases in which registration is compulsory?
Question 6
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Which are the cases in which registration is compulsory?
Ans. As per paragraph 5 in Schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to

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What is aggregate turnover?
Question 5
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What is aggregate turnover?
Ans. As per section 2 (6) of the MGL, aggregate turnover includes the aggregate value of:
(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act a

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Who are the persons liable to take a Registration under the Model GST Law?
Question 4
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Who are the persons liable to take a Registration under the Model GST Law?
Ans. Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule III

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What will be the effective date of registration?
Question 3
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. What will be the effective date of registration?
Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration. Where an application for registration has been submitted by the ap

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Can a person without GST registration claim ITC and collect tax?
Question 2
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. Can a person without GST registr

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What is advantage of taking registration in GST?
Question 1
Bill
Registration
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is advantage of taking registration in GST?
Ans. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
* Legally recognized as supplier of goods or services.
* Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods o

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Does the model GST Law empower the competent government to exempt supplies from the levy of GST?
Question 22
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. Does the model GST Law empower the competent government to exempt supplies from the levy of GST?
Ans. Yes. Under Section 10 of the Model GST Law, the Central or the State Government, on the recommendation of the GST council can exempt the supplies from the levy of GST either gen

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Whether remission is allowed on goods lost or destroyed for all reasons?
Question 21
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. Whether remission is allowed on goods lost or destroyed for all reasons?
Ans. No, on plain reading of the language of proposed Section 11, remission is allowed only for those cases where supply of goods is found to be deficient in quantity due to natural causes.
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Whether remission is allowed for goods lost or destroyed before supply?
Question 20
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. Whether remission is allowed for goods lost or destroyed before supply?
Ans. Remission of tax will apply only when tax is payable as per law i.e. taxable event should have happened and tax is required to be paid as per law. Under GST Law, levy is applicable upon supply of goods. Where goods are lost or

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Whether remission is allowed under GST law?
Question 19
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. Whether remission is allowed unde

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What is remission of tax/duty?
Question 18
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. What is remission of tax/duty?
Ans. It means relieving the tax payer from the obligation to pay taxon goods when they are lost or destroyed due to any natural causes. Remission is subject to conditions stipulated under the law and rules made thereunder.
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When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax?
Question 17
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax?
Ans. No, the taxable person providing such goods or services shall not collect the tax on such goods or services.

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What is the minimum rate of tax prescribed for composition scheme?
Question 16
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. What is th

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What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme?
Question 15
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme?
Ans. Taxable person who was not eligible for the composition scheme would be liable to p

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How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?
Question 14
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. How to compute 'aggregate turnover' to determine eligibility for composition scheme?
Ans. The methodology to compute aggregate turnover is given in Section 2(6). Accordingly, 'aggregate turnover' means 'Value of all supplies (taxable and non-taxable supplies + Exempt supplies + Exports)

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What is the threshold for opting to pay tax under the composition scheme?
Question 13
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Wha

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Can composition tax be collected from customers?
Question 12
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Can composition tax be colle

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Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit?
Question 11
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit?
Ans. No, customer who buys goods from taxable person who is under composition scheme is not eligible for composition input

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Can the taxable person under composition scheme claim input tax credit?
Question 10
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Can t

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Can composition scheme be availed if the taxable person effects inter-State supplies?
Question 9
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Can composition scheme be availed if the taxable person effects inter-State supplies?
Ans. No, composition scheme is applicable subject to the condition that the taxable person does not affect interstate supplies.
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Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?
Question 8
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?
Ans. No, composition scheme would become applicable for all the business verticals/registrations which are separately held by the person with same PAN
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Who can notify a transaction to be supply of goods and/or services?
Question 7
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Who can notify a transaction to be supply of goods and/or services?
Ans. Central Government or State Government on the recommendation of the GST Council can notify a transaction to be the supply of goods and/or services.
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Whether supplies made without consideration will also come within the purview of Supply under GST?
Question 6
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Whether supplies made without consideration will also come within the purview of Supply under GST?
Ans. Yes only those cases which are specified under Schedule I to the Model GST Law.
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Tax

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In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main supplier?
Question 5
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main

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