GST – 100 Solutions to Taxpayers Problems dated 26-06-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
REGISTRATION
Q. 1 Does aggregate turnover include value of inward supplies received on which RCM is payable?
Ans. Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
Q. 2 What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
Ans. New registration would be required as partnership firm would have new PAN.
Q. 3 A taxable person's business is in many States. All supplies are below ` 10 Lakhs. He makes an inter-State supply from one State. Is he liable for registration?
Ans. He is liable to register if the aggregate turnover (all India) is more than ` 20 lacs or if he is engaged in inter-State supplies.
Q. 4 Can we use provisional GSTIN or do we get new GSTIN?
Can we start using provisional GSTIN
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r aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Ans. Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
Q. 9 If there are two SEZ units within same State, whether two registrations are required to be obtained?
Ans. SEZs under same PAN in a state require one registration. Please see proviso to Rule 8(1) of CGST Rules.
Q. 10 Is an advocate providing inter-state supply chargeable under Reverse Charge liable for registration?
Ans. Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
Q. 11 When is registration in other State required? Will giving service from Nasik to other State require registration in other state?
Ans. If services are being provided from Nasik then registration is required to be taken only
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turnover of all supplies made by you would be added.
Q. 16. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ` 20 lacs?
Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
Q. 17. Is it correct that person dealing exclusively in NIL rated or exempt goods/services liable to register if turnover ` 20/10 Lakh?
Ans. There is no liability of registration if the person is dealing with 100% exempt supplies.
Q. 18 If I register voluntarily though turnover is less than ` 20 Lakhs, am I required to pay tax from 1st supply I make post registration?
Ans. Yes, you would be treated as a normal taxable person.
Q. 19 Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Ans. Separate registration as tax deductor is required.
Q. 20 Is separate registration required for trading and manufacturing b
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omplete its registration formalities from its date of liability to obtain registration.
Q. 25. What If I am not liable to register under GST but I was registered under Service tax?
Ans. You can apply for cancellation of Provisional ID on or before 31st July 2017.
Q. 26. When turnover of agents will be added to that of the principal for registration?
Ans. No.
Q. 27. If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Ans. You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017.
REFUND
Q. 28. I have a pending export refund in Service Tax. What will happen?
Ans. Refunds under earlier laws will be given under the respective laws only.
Q. 29. As an exporter, how do I ensure that my working capital is not blocked as refunds?
Ans. Appropriate provisions have been made in the law by providing for grant o
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The export procedure for Nepal would be same as that to other Countries.
Q. 34. Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
Ans. Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.
Q. 35. How would the sale and purchase of goods to and from SEZ will be treated? Will it be export/input?
Ans. Supply to SEZs is zero rated supplies and supplies by SEZs are treated as imports.
Q. 36. Please clarify status of international export freight under GST as the same was exempt under POPS rules. It is zero rated in most countries.
Ans. POS for transport of goods determinable in terms of Section 12(8) or Section 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies.
Q. 37. When goods are being imported from SEZ who will pay IGST?
Ans. Such supply is treated as import and present procedure of
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thin that State for the same GSTIN only.
Q. 42. In case of service supplied, should the credit be given to the State where it is billed or the state it is rendered?
Ans. Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.
Q. 43. Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Ans. Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
Q. 44. How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR-2 provides for reporting of same by the recipient.
INVOICE
Q. 45. A shop sells taxable & exempt products to the
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h are to be used for construction then delivery challan should be issued.
Q. 49. How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Ans. The supplier may issue credit note to the customers and adjust his liability.
Q. 50. Should we issue Self-invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Ans. For RCM liabilities tax invoice has to be issued on self.
RETURNS
Q. 51. What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance
Ans. Advance refunded can be adjusted in return.
Q. 52. Do registered dealers have to upload sale details of unregistered dealers also in GST?
Ans. Generally not. But required in case of inter-State supplies having invoice value of more than ` 2.50 Lakhs.
Q. 53. How to incorporate two supplies in return for Pharma with same HSN c
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sis. So whether stipend paid to intern will also come under RCM?
Ans. Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.
Q. 58. Salary by partnership firm to Partners as per Income Tax Act liable to GST?
Ans. Salary will not be liable for GST.
Q. 59. Section 9(4) of CGST Act, 2017. Do I need to pay under RCM if I purchase stationary worth ` 100 from an unregistered stationery shop?
Ans. It has been decided that ` 5000/- per day exemption will be given in respect of supplies received from unregistered person.
Q. 60. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?
Ans. Tax is payable on consideration received for the supply.
Q. 61. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?
Ans. GST will be levied on the value charged for the supply only.
Q. 62. How will disposal of sc
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and are required to be separately accounted for.
Q. 66. What is the difference in between 'Nil rated', 'taxable at 0%' and exempted goods and services? Especially in relation with ITC?
Ans. Exempt supply includes Nil rated (taxable at 0%) and non-Taxable supplies and no ITC is available for such supplies.
Q. 67. Will professional tax will be abolished in Maharashtra after introducing of GST?
Ans. Professional tax is not a tax on supply of goods or services but on being in a profession. Professional tax not subsumed in GST.
Q. 68. Employer provides bus service, meal coupon, telephone at residence, gives vehicle for official and personal use, uniform and shoes, any GST?
Ans. Where the value of such supplies is in the nature of gifts, no GST will apply till value of such gifts exceeds ` 50000/- in a financial year.
Q. 69. The definition of composite supply and the description of same under Section 8 differ. Please explain consequences.
Ans. Section 2(30) d
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. What about my dealers stock?
Ans. The dealer will get deemed credit @ 40%/60% of the CGST paid on supply of such goods in GST. If the goods are branded and greater than ` 25,000, full credit using CTD can be availed.
Q. 75. A trader buys from manufacturer not registered in excise as his turnover is below ` 1.5 cr. Then in such case can trader take ITC on stock up to 40%?
Ans. Yes deemed credit will be available subject to satisfaction of other conditions as prescribed.
Q. 76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of 1st July 2017.
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.
Q. 77. If a trader purchases directly from manufacturer & has documents showing excise, will he get full excise credit or 40% of CGST?
Ans. Full transition cre
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nbsp;The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.
Q. 81. What will be the impact of closing stock which has been already paid VAT on 1st July?
Ans. The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.
Q. 82. If in VAT return refund claimed in June 17 & no balance credit in GST. Then what's the position of submission of Form C.
Ans. Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.
Q. 83. Some service was provided on 28-6-2017 but Invoice will be raised on 5-7-2017. Whether we have to charge Service Tax or GST?
Ans. If Point of Tax arises after appointed date, then GST will be chargeable on such supply.
Q. 84. Would we be eligible for credit on Capital Goods in transit and received post GST?
Ans. No provision for such credit is there in
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of Section 140(3) read with Rule 1(4) of Transition Rules are satisfied.
Q. 90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?
Ans. No such provision in GST.
Q. 91. Can ITC of Swach Bharat Cess or Krishi Kalyan Cess be carried forward under GST?
Ans. No
Q. 92. Will Clean Energy CESS on imported Coal @ ` 400 PMT continue to be applicable in GST?
Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess @ ` 400/- per tonne.
Q. 93. Whether closing balance of edu cess and secondary higher education cess prior to 1st March 2015 can be carried forward in GST?
Ans. No it will not be carried forward in GST as it is not covered by definition of “eligible duties and taxes” under Section 140 of the CGST Act.
Q. 94. Can you clarify for 40% benefit on closing stock does 1 year limit apply or not ?
Ans. Deemed credit will be available for all stock procured within
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