Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: If I have multiple manufacturing units in a State/UT, do I have to register all my companies separately or as a group? Answer: You shall be granted a single registration in the State/UT. However, you have the option to take separate registration for each of your business verticals (as defined in section 2(18) of the CGST Act, 2017) in the State/UT. Question 2: A registered person is sending semi-cooked food from his manufacturing unit at Gurgaon to his branch in Delhi. Is he required to pay any tax? Answer: In accordance with the provisions of section 25(4) of the CGST Act, 2017, branches in different States are considered as distinct persons. Further, as per Schedule I, this constitutes supply made in the course or furtherance of business between distinct persons even if made without consideration. As it is an inter-State supply, the registered person is required to pay IGST. Question 3: A registered person is supplying ma
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the recipient reduces the claim of ITC to that extent if ITC was availed by him. (Credit Note must bear reference of original invoice No.) Question 6: What will be the rate of tax on cold drinks ( non- alcoholic beverages ) and ice cream when served in non-AC Restaurant along with food ? Answer: The rate of tax shall be 12 %. In the event of the supply being made in an AC restaurant, the rate of tax shall be 18%. If the restaurant was availing compoistion scheme (can do so only if ice cream is not manufactured by the restaurant), the rate of tax shall be 5% of the aggregate turnover. Question 7: The supplier has sold machinery for hotel industry on 28-06-2017. The purchaser has received the invoice and machinery on 05-07-2017. Whether ITC of Duty / VAT paid ( under the existing law ) on machinery can be allowed to be claimed ? Answer: No. Such credit is not admissible in case of machinery, being capital goods. As per Section 140 ( 5 ) of the CGST Act, 2017, credit of eligible duties a
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put in a unit container and bearing a registered brand name is taxable @ 5%. In accordance with the provisions of section 22 of the CGSTAct, 2017 (applicable in your case), a person becomes liable to be registered in the State/UT from where he makes taxable supply of goods or services or both if his aggregate turnover (which includes value of exempt supplies as well) in a financial year exceeds ₹ 20 Lakh. Hence, liability to get registration accrues in your case from the date the aggregate turnover in the current financial year exceeds ₹ 20 lakh. (ii) The suppliers of basmati rice (branded) are saying that they will charge 5% IGST and I must get myself registered to avail the ITC. What do I do? Answer: As rice put up in a unit container and bearing a registered brand name is taxable @ 5%, the suppliers of branded basmati rice located in other States would be charging IGST @ 5%, whose credit can be availed only when the recipient is registered under the CGST Act, 2017.There
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issued by a registered person under rule 46 of the CGST Rules, 2017. An unregistered person cannot issue a tax invoice. (v) Assuming, I apply for voluntary registration and obtain GST registration: (a) Will I get ITC on the IGST paid on branded rice lying in stock on the date prior to the date of my liability? Yes, a person who takes voluntary registration is entitled to take credit of input tax in respect of inputs held in stock on the day immediately preceding the date of grant of registration. In this connection, section 18(1)(b) read with section 25(3) of the CGST Act, 2017 refers. (b) Will I get ITC on CGST & SGST paid on packing materials, office stationery, computer and accounting software purchased and lying with me as stock as business assets on the date preceding the date from which I have become liable to pay tax under GST? A person who takes voluntary registration is entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-fi
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registration number? Only from date the registration has been granted. The tax invoice also can be issued from that date only. Prior to it neither you can issue tax invoice nor charge any tax on the invoice. (d) Will I have to issue tax invoice for all sales that I make i.e. branded or un-branded after getting registered? Rice put up in a unit container and bearing a registered brand name is taxable @ 5% and tax invoice has to be issued for supply of taxable goods [ Section 31(1) of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017]. For sale of goods exempt from tax i.e. unbranded rice, a bill of supply has to be issued [ Section31(3)(c) of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017]. (e) Is it compulsory to show the tax amount separately on the face of the tax invoice? Yes, it is mandatory under section 33 of the CGST Act, 2017. (f) I have three shops in the city, can I issue tax invoices using prefix for these different locations? Yes. It may, however,
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se one tax invoice for both food and liquor or not? Answer: Tax invoice has to be issued for supply of food, while for liquor a bill of supply has to be issued or any invoice as may be required under the provisions of local VAT or sales tax law of the concerned State. (iii) What will the rate of tax to be charged for supplies of food made from their takeaway counter? Answer: Tax has to be charged @18% on supplies of food made from their takeaway counter. (iv) Can they claim ITC of CGST and SGST paid on crockery items to be used in the restaurant? Answer: Yes, they can claim ITC of CGST and SGST paid on crockery items to be used in the restaurant. It may be stated that they are entitled to the credit of even IGST paid where such goods are procured from outside the State against a tax invoice. (v) Whether they will be eligible for ITC on crockery items purchased locally in the month of March, 2017 paying VAT of ₹ 72,500/-. The goods have been shown as business assets. Answer: If th
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