Goods and Services Tax – GST – Dated:- 1-8-2017 – Question 1: Can small mining leaseholders with a turnover less than ₹ 75 lacs operate under composition scheme? Answer: As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed ₹ 75 lakhs, would be eligible for paying GST under the composition scheme. Question 2: What is the GST rate for minerals and ores in Composition Scheme? Answer: In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½% (CGST) and ½% (SGST/UTGST). Question 3: Will they have to deposit GST under SGST/ CGST heads separately? Answer: Yes. GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return. Question 4: Can a small Mine Lease holder undertake inter-State supply if it avails composition scheme? Answer: No. If a
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echanism. Question 8: What is the threshold limit and conditions when a small mine owner/lease holder under Composition Scheme has to migrate into full GST System? Answer: As per section 10(3) of the CGST Act, 2017, the option availed of by the small mine owner/lease holder shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds ₹ 75 lakhs. For details regarding other conditions, section 10 of the CGST Act, 2017 and the rules framed there under may be referred to. Question 9: Is the Return filing and compliance simpler under composition scheme? Answer: Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4. Question 10: Will the basic exemption limit from GST be applicable to the tiny & micro segment in mining? Answer: Yes, the basic exemption limit of ₹ 20 lakhs (Rs.10 lakhs in the case of special category States) is app
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unregistered person pay reverse tax? Answer: A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax under reverse charge mechanism. This exemption will not apply if the value exceeds ₹ 5000/-. Question 13: Can a buyer of goods and services pay the value of services / goods to the supplier and deposit the GST component of the invoice in the supplier s account so that when the buyer claims input credit, he may get the same cross entry tallied from the supplier s account? Answer: No. This option is not available under GST Law. Question 14: In case there are disputes regarding quality, weight, etc. be
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e date of issue of invoice or the date of receipt of payment, whichever is earlier. Accordingly, GST would be payable on advance payment received prior to issuance of the invoice. Question 17: Will the supplier have to issue receipt voucher against each advance received? Answer: Yes, as per section 31(3)(d) of the CGST Act, 2017 the supplier has to issue a receipt voucher for every advance received. Question 18: How do I show the advance received in GSTR 1? Answer: Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances against which the invoices have not been issued till the end of the tax period shall have to be reported on a consolidated basis in Table 11 of Form GSTR-1. As and when the invoices against these advances are issued, they have to be declared in Form GSTR-1 and the adjustment of the tax paid on
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adjusted in totality. While raising the invoice subsequent to receipt of advance, the tax payable will get reduced by the amount of tax paid on the advance and balance amount of advance may be adjusted against future supplies. Question 21: Will GST charged on purchase of all earth moving machinery including JCB, tippers, dumpers by a mining company be allowed as input credit? Answer: The provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor vehicle for specified purposes listed therein. Further, in terms of the provision of Section 2(76) of the CGST Act, 2017 the expression motor vehicle shall have the same meaning as assigned to it in Clause (28) of Section 2 of the Motor Vehicle Act, 1988, which does not include the mining equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST charged on purchase of earth moving machinery including tippers, dumpers used for transportation of goods by a mining company will be allowed as input credit. Question
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ing amount of unutilised input credit be refunded by the Government? Answer: In terms of the provision of Section 54(3) of the CGST Act, 2017 subject to conditions, refund of unutilized input tax credit would be available in respect of zero rated supply or where ITC has accumulated on account of rate of tax on inputs being higher than the rate of taxon the output supply. However, such refund of ITC would not be available if export duty is payable on the goods so exported out of India. Question 26. Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining companies be allowed as input credit? Answer: ITC on any input service/ inputs used in the course or furtherance of business would be available subject to restrictions and other conditions as per the provisions of Chapter-V of the CGST Act, 2017. However, tax paid in respect of canteen service providers shall not be available as cred
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o the buyer if otherwise available. The supplier of the mineral will also pay tax on reverse charge basis on the freight charged by the GTA and the credit of the same will be available to the supplier of the mineral. In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same. The tax on the mineral will be paid on forward charge by the supplier of the mineral and credit will be available to the buyer if otherwise available. Question 29. Will the situation as mentioned above be different if the value of mineral is less than the cost of freight in long distance consignments? Answer: In the aforesaid example relating to FOR contract, the supply under the contract shall be classified as composite suppl
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ess shall be available. Question 32. Will the mining companies be eligible to take ITC for construction of townships, hospitals and schools? Answer: No. Mining companies will not be eligible for ITC on such activities even if used in course or furtherance of business. In this connection, the provisions contained in section 17(5) (c) of the CGST Act, 2017 refer. Question 33. Are minerals sent for export in processed or raw form fully exempted from payment of GST or IGST? Answer: In terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods is considered as zero rated supply. Further, in terms of the provision of Section 16(3) of the IGST Act, 2017 a registered person may export goods (i) without payment of IGST against bond/letter of undertaking and claim refund of unutilised ITC, or (ii) on payment of IGST,utilising eligible ITC and claim refund of such IGST. Question 34. What is the procedure for return of goods under GST? Answer: In terms of Section 34(1) of the CG
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1) of CGST Act. 2017 is applicable on: a) Dept. or establishment of the Central Govt. or State Govt.; or b) Local authority; or c) Govt. agencies; or d) Such persons or category of persons as may be notified by the Govt. on the recommendations of the Council. Answer: TDS, under section 51 (1) of the CGST Act, 2017 will apply to supplies made to such agencies as may be mandated by the Government for TDS. As of now, this section has not been notified and therefore TDS is not applicable on any supplies. . Question 37. What is the requirement for E-way bill for companies operating in the sector? Answer: As per rule 138 of the CGST Rules, 2017, till such time as final rules are issued, the Government may, by notification, specify the documents that the person in-charge of a conveyance shall carry while the goods are in movement or in transit storage. As and when the new e-way bill rules are notified, the person transporting the goods shall carry the said e-way bill generated from the common
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sale/stock transfer under CST Act. The benefit of concessional rate/nil rate is available conditional upon production of the statutory forms. Therefore,allowing migration of the credit that has accrued on account of sale/stock transfer having been made on concessional rate/nil rate should be given only on production of the statutory forms. Even otherwise, the taxpayer would have claimed refund of this ITC and such refund would have been given only on production of the statutory forms. It has been presumed that forms for periods before April 15 would have either been presented or the State would have recovered the additional tax payable on account of non-production of statutory forms. Production of these forms is a statutory liability and the taxpayers have already availed the benefit. Question 40. Education Cess and S&H Education Cess carried forward in ER-1 – whether eligible for ITC under the CGST Act, 2017? Answer: No. Credit of Education Cess and SH Education Cess cannot be ca
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tinuous supply of goods? Answer: Such supplies are in the nature of continuous supply as the invoices are raised periodically. The individual dispatches may be covered under delivery challans and invoice may be issued for the supplies made during a period as per the contract. Question 45. In case of coal, the applicable Compensation Cess is a Fixed Amount of ₹ 400/- per MT. Under above situation, how such apportionment is possible since in case of FSA Sale, supply of different grade of coal as per availability of stock against single bulk receipt of Advance is to be adjusted? Answer: If tax rate is not determinable, the tax rate may be determined and paid on the amount of advance at 18%. Question 46. Whether Railway siding in mining industry exclusively utilized for effecting dispatch of taxable goodsvz.coal (i.e. directly used in the course or furtherance of business) will be treated as Plant and Machinery and ITC under GST will be allowed or treated as civil structure and ITC w
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