GST – GST FAQ 2nd Edition – June 2017 as Updated as on 1.1.2018 – 07 – Q 1. What are the Payments to be made in GST regime? Ans. In the GST regime, for any intra-state supply, taxes to be paid are the Central GST (CGST), going into the account of the Central Government) and the State/UT GST (SGST, going into the account of the concerned State Government). For any inter-state supply, tax to be paid is Integrated GST (IGST) which will have components of both CGST and SGST. In addition, certain categories of registered persons will be required to pay to the government account Tax Deducted at Source (TDS) and Tax Collected at Source (TCS). In addition, wherever applicable, Interest, Penalty, Fees and any other payment will also be required to be made. Q 2. Who is liable to pay GST? Ans. In general, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
supply. Different situations envisaged and different tax points have been explained in the aforesaid sections. Q 4. What are the main features of GST payment process? Ans. The payment processes under GST Act(s) have the following features: Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan; Facilitation for the tax payer by providing hassle free, anytime, anywhere mode of payment of tax; Convenience of making payment online; Logical tax collection data in electronic format; Faster remittance of tax revenue to the Government Account; Paperless transactions; Speedy Accounting and reporting; Electronic reconciliation of all receipts; Simplified procedure for banks Warehousing of Digital Challan. Q 5. How can payment be done? Ans. Payment can be done by the following methods: (i) Through debit of Credit Ledger of the tax payer maintained on the Common Portal – ONLY Tax can be paid. Interest, Penalty and Fees cannot be pa
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return. As mentioned earlier, payment can also be debited from the Credit Ledger. Payment of taxes for the month of March shall be paid by the 20th of April. Composition tax payers will need to pay tax on quarterly basis. Q 7. Whether time limit for payment of tax can be extended or paid in monthly installments? Ans. No, this is not permitted in case of self-assessed liability. In other cases, competent authority has been empowered to extend the time period or allow payment in instalments. (Section 80 of the CGST/SGST Act). Q 8. What happens if the taxable person files the return but does not make payment of tax? Ans. In such cases, the return is not considered as a valid return. Section 2(117) defines a valid return to mean a return furnished under sub-section (1) of section 39 on which self-assessed tax has been paid in full. It is only the valid return that wou
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ll reflect the total tax liability of a taxpayer (after netting) for the particular month. Q 12. What is a Cash Ledger? Ans. The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST. Q 13. What is an ITC Ledger? Ans. Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and no other amounts such as interest, penalty, fees etc. Q 14. What is the linkage between GSTN and the authorized Banks? Ans. There will be real time two-way linkage between the GSTN and the Core Banking Solution (CBS) of the Bank. CPIN is automatically routed to the Bank via electronic string for verification and receiving payment and a challan identification number (CIN) is automatically sent by the Bank to the Common Portal confirming payment receipt. No
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ration and thereafter it will be purged from the System. However, the tax payer can generate another challan at his convenience. Q 18. What is a CPIN? Ans. CPIN stands for Common Portal Identification Number (CPIN) given at the time of generation of challan. It is a 14-digit unique number to identify the challan. As stated above, the CPIN remains valid for a period of 15 days. Q 19. What is a CIN and what is its relevance? Ans. CIN stands for Challan Identification Number. It is a 17-digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account held with them. It is an indication that the payment has been realized and credited to the appropriate government account. CIN is communicated by the authorized bank to taxpayer as well as to GSTN. Q 20. What is the sequence of payment of tax where that taxpayer has l
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
r head for all governments. Total 38 accounts (one each for CGST, IGST and one each for SGST for each State/UT Govt.) will have to be opened. Any amount received by such E-FPB towards GST will be credited to the appropriate account held by such E-FPB. For NEFT/RTGS Transactions, RBI will act as E-FPB. Q 23. What is TDS? Ans. TDS stands for Tax Deducted at Source (TDS). As per section 51, this provision is meant for Government and Government undertakings and other notified entities making contractual payments where total value of such supply under a contract exceeds ₹ 2.5 Lakhs to suppliers. While making any payments under such contracts, the concerned Government/authority shall deduct 2% of the total payment made (1% under each Act and 2% in case of IGST) and remit it into the appropriate GST account. Q 24. How will the Supplier account for this TDS? while filing his return? Ans. Any amount shown as TDS will be reflected in the electronic cash ledger of the concerned supplier. He
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
mount calculated at the rate not exceeding one percent of the net value of taxable supplies made through it where the consideration with respect to such supplies is to be collected by the operator. Such withheld amount is to be deposited by such E-Commerce Operator to the appropriate GST account by the 10th of the next month. The amount deposited as TCS will be reflected in the electronic cash ledger of the supplier. Q 27. What does the expression Net value of taxable supplies mean? Ans. The expression net value of taxable supplies means the aggregate value of taxable supplies of goods or services, other than services notified under Section 9(5), made during any month by all registered taxable persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. Q 28. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment? Ans. Yes. The taxpayer would be required to pre-register his credit card,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =