Goods and Services Tax – General FAQ on GST – Frequently Asked Questions – 170720-01 – 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 exclusively making supplies of Nil rated goods, registration is not compulsory. Kindly refer Section 23 of CGST A
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ne 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 manufacturers of following goods, namely – Ice-cream and other edible ice, whether or not containing cocoa, Pan-masala, Tobacco and manufactured tobacco substitutes, are not eligible for benefit of composition scheme. Q.
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rlier 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 under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017. Q. 18. I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both? Ans. Provisional ID (PID) will be your GSTIN. You can supply goods or services or both specifying PID as your GSTI
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s. 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. Credit may be availed on the basis of document evidencing payment of duty on inputs as per Section 140(3) of the CGST Act, 2017 read with Rule 117(4) of CGST Rules, 2017. Q. 25. As textile traders or manufacturers, with input stock without payment of Excise duty but GST being charged on final sale, will we get credit on such stock? Ans. Credit on stock which was unconditionally exempt from Exci
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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 31-7-2017 after which the Bonds/LUTs shall have to be executed in the newly prescribed formats. New formats of bond and LUT have been prescribed under Rule 96A of CGST Rules, 2017. ARE-1 procedure is being dispensed with, except with reference to commodities which continue to attract Central Excise duty. Q. 32. Can we get ITC for capital expenditures like vehicles, solar panels, etc. for company use? Ans. ITC on capital goods is generally available if they are used in the course or furtherance of bu
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e 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 registration under Excise/ST, what will be treatment of Cenvat after migration? Ans. Cenvat credit lying in balance in the return filed for period upto 30th June, 2017 is to be allowed as CGST credit as per Section 140(8) of the CGST Act, 2017 read with Rule 117(2) of CGST Rules, 2017. OTHERS Q. 39. Which documents should be used in case of Inter-State supply of goods until e-way bill rules are notified? Ans. The documents specified under Rule 48 of the CGST Rules, 2017 may please be referred. Triplicate copy of invoices for supply of goods and duplicate copy of invoice for supply of
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tatutory 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 two manufacturing units in the same area. For every supply, I generate an invoice and take ₹ 500 flat for cartage and loading charges. What tax rate is to be charged on the cartage and loading expenses? Ans. This is a composite supply where the principal supply (the goods) cannot be supplied without the cartage/unloading/transportation expenses. Therefore, the GST rate applicable will be the same as that of the principal supply, i.e., cycle parts, as provided under Section 8 of the CGST Act, 2017. Q. 45. I run a restaurant where I serve alcohol and provide food etc. How do I generate my invoices? What will attract GST and what will attract VAT? Ans. In this case, yo
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