LATEST 50 SOLUTIONS TO TAXPAYERS PROBLEMS (SHORT FAQ) dated 20-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
REGISTRATION
Q. 1. If I buy raw material from a supplier unregistered under GST, do I have to pay GST in RCM and can I avail ITC of the same?
Ans. Yes, you have to pay GST via Reverse Charge Mechanism (RCM). You can avail ITC of the GST so paid if you are otherwise eligible.
Q. 2. Can an unregistered dealer supply goods to other States if his turnover is below ₹ 20 lakh?
Ans. No. The supplier would be liable to obtain registration in case of Inter-State supplies irrespective of his turnover.
Q. 3. Existing taxpayer registering a branch office in another state comes under fresh registration or under existing taxpayer registration?
Ans. For every State, a fresh registration is needed.
Q. 4. Is registration necessary if only Inter-State supply of Nil rated goods is being made?
Ans. If exclusiv
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claim refunds.
Q. 9. Can a person operating two different companies with different names but with same PAN get two GST registrations?
Ans. One PAN holder gets one registration in every State, but he has the option of getting different registrations for different business verticals.
Q. 10. Is a job-worker required to register? Whether composition scheme is available to a job-worker?
Ans. Job-workers making taxable supplies above the threshold aggregate turnover need to register. Composition scheme is not available to job-workers. They can, however, avail benefit of Section 143 of the CGST Act.
Q. 11. I am a service provider with turnover of ₹ 50 lakh in one State only. Am I eligible for the composition scheme?
Ans. Service providers, except restaurants/caterers, are not eligible for composition scheme.
Q. 12. I am an ice-cream manufacturer with sales in one State only. Can I avail the option of composition?
Ans. No. The manu
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dealer. If my turnover crosses ₹ 75 lakh, can I continue in the scheme for the remaining part of the financial year?
Ans. No, a taxpayer becomes ineligible for composition scheme on the day his turnover crosses ₹ 75 lakh.
Q. 16. If I was registered earlier but not required to register under GST, what to do about provisional ID and accumulated ITC?
Ans. Please apply for cancellation of registration under Section 29(1) of the CGST Act, 2017 read with Rule 24(4) of CGST Rules, 2017. You will be required to calculate and pay ITC availed on goods held in stock on the date of cancellation of registration.
Q. 17. I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?
Ans. In your new registration application, if you have referred to your past registration no. of Central Excise or Service Tax, you will be eligible for transitional credit
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ou are not liable to be registered under GST. There is no requirement of registration for making Inter-State purchases.
Q. 21. Is GST registration mandatory for small retailers to buy from dealers/wholesalers?
Ans. There is no such requirement under GST law.
TRANSITION
Q. 22. After implementation of GST, will EOU scheme continue or not?
Ans. GST has no special dispensation for EOUs. As to whether they exist for any other purpose may be seen from the FTP.
Q. 23. I was unregistered in Excise before and now in 18% slab? Can I take credit of stock if I don't have invoices?
Ans. Deemed credit will be available to you for stock as duty paying documents are not available, subject to provisions of Section 140(3) of the CGST Act, 2017 read with Rule 117(4) of CGST Rules, 2017.
Q. 24. I was not required to register earlier, as I was availing SSI Exemption in Excise and did not register; how do I now take credit of stock lying with me?
Ans.  
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1st July, 2017 then GST will not be applicable.
Q. 28. If rent was received in advance before the appointed day and person was not liable to Service Tax then does RCM liability arise?
Ans. The liability of RCM under GST will arise only after 1st July, 2017.
Q. 29. Is there any format for invoice under GST? If yes, please provide the link of the same.
Ans. No, there is no particular format. Rule 46 of the CGST Rules, 2017 prescribes the particulars that a tax invoice should contain.
Q. 30. Whether from 1st July sequence of invoice no. will change? Or can we follow the same sequence?
Ans. Same sequence can be followed provided conditions laid down in Section 31 of the CGST Act, 2017 read with Rule 46 of CGST Rules, 2017 are met.
Q. 31. Whether existing UT-1, Bond will suffice? Whether existing ARE-1 form will exist?
Ans. Circular No. 4/4/2017-GST, dated 7-7-2017 has clarified that the existing Bonds/LUTs shall be valid till 31-7-201
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rs and have stock older than 1 year on which Excise is paid. Will we get Input Tax Credit?
Ans. You will be entitled to carry forward closing balance of Cenvat credit shown in your last return filed under the Central Excise Act.
Q. 35. I was unregistered earlier. Now I want to register under composition scheme. Can I take ITC of my duty paid stock?
Ans. No, a person registering under the composition scheme cannot take ITC on inputs.
Q. 36. I have Excise registration. I now want to migrate using composition scheme. What is to be the treatment of ITC?
Ans. ITC is not allowed under composition scheme. Your ITC lying in balance will lapse.
Q. 37. I paid for a service in June 2017 but am likely to receive the service in August 2017. Can I avail ITC for the same?
Ans. Credit on such inputs services will be allowed subject to satisfaction of conditions prescribed in Section 140(5) of the CGST Act.
Q. 38. For taxpayers with centralized re
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llan and make a single bill at the end of the month. Can the same be done under GST?
Ans. If in every instance you are making a supply then an invoice needs to be issued. For any other movement of goods other than supply (as specified in Rule 55 of CGST Rules, 2017), a delivery challan may be issued.
Q. 42. Will service charge, as charged by some restaurants, be treated as consideration for a supply and hence considered liable for tax?
Ans. There is no distinction between goods or services under GST. Service charge like any other consideration for supply will be leviable to GST. It is also clarified that service charge is not a statutory levy. It is not levied by the Government.
Q. 43. What to do with stock lying with me on 1-7-2017? Do I need to charge GST?
Ans. Yes, you need to charge GST on supplies of such stock, but you can use transition credit, if available on the said goods.
Q. 44. I am a small manufacturer who supplies cycle parts to t
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to be charged with 40% GST. Will I be charged 40% on the whole amount?
Ans. No, these are two independent supplies at two different prices, they will be charged at the GST rate applicable to them even if they are purchased on the same invoice.
Q. 47. I am going to a jewelry shop and selling 10 gm gold and purchasing a 20 gm set in return. GST will be charged on 10 gm or 20 gm ?
Ans. The value to be charged on such transaction will be the open market value of the entire transaction as per Rule 27(a) of the CGST Rules, 2017. Therefore, GST should be charged on the entire 20 gm.
Q. 48. As a composition dealer, will I have to issue a self-invoice if I purchase goods from an unregistered person?
Ans. Yes, a composition dealer will issue a self-invoice as he is required to pay GST. He will not be eligible for ITC also.
Q. 49. Can I use my CGST/SGST credit to set off my IGST liability?
Ans. CGST credit can be first used to set off CGST liabili
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