Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs
GST
Dated:- 30-8-2017
Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs
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Document 1
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FREQUENTLY
ASKED QUESTIONS
GOODS AND SERVICES TAX
Queries relating to GST received from various Sectors have been
scrutinised and developed into short FAQS.
The Fifth part, containig 50 questions and their answers, is given below.
Levy
Part-5
Q1. What is the taxable treatment of the services provided by a Service Provider in respect of such services which are
covered under notification 25/2012-Mega Exemption Notification for Government, railways and other
Departments? Such Services are exempt from Service Tax, hence who will bear the GST tax element of 18%, the
Service Provider or the Principal Employer?
Ans. Exemption notification for services have been notified. Refer Not. No. 12/2017-Central
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two months, then how
the Point of Service
rvice
will be determined?
Ans. Time of supply of services has been explained in Section 13 of CGST Act. The date of issue of Invoice will the time of supply.
Q4. Is
practically feasible that Service Provider submits an Invoice after execution of work and the Principal
Employer makes arrangement for payment of the bill after three months whereas as per point of service rule, the
Point of Service stands for one month from the date of issue of raise invoice or services whichever is earlier and
the Service Provider has to pay Service Tax @ 18% on value of work done although he has not received any
payment from the client till date?
Ans. Time of supply of services has been explained in Section 13 of CGST Act. The terms for payment do not decide the taxability of a
particular transaction. So even if payment for a particular supply has not been received it will still be liable for GST.
Q5. Intermediary services and services provided by Ba
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ourney to a
e in Pakistan, it is taxable because the place of embarkation is in the taxable territory.
place in
Q9. Levy of GST in respect of ticket booked in India if place of boarding is outside India?
Ans. The place of supply is outside India but as the supplier is located in India, it is a case of Inter-State supply and subject to IGST.
It will be zero rated if the sale proceeds are realized in convertible foreign exchange.
Reverse Charge
Q10. If an Assessee pays GST on behalf of an unregistered supplier/SSI/exempted unit, will he be able to take Input Tax
Credit of the GST paid on reverse charge basis?
Ans. Yes, input tax credit of tax paid on reverse charge basis by the recipient is allowed to the recipient and the credit can be taken
even in the same month.
Q11. Whether, any Indian providing services to a U.S. based company on contract basis is required to pay reverse
charges on charges deducted by a U.S. based company?
Ans. It depends on the nature of charges deduc
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miscellaneous
payments to petty contractors. Is GSTN under reverse charge applicable for these payments?
Ans. If you are not registered, payment on reverse charge under Section 9(4) of CGST Act, 2017 is not required. That said, if such
services availed fall within the domain of any service that is subject to reverse charge under Section 9(3) of CGST Act, 2017 you
have to get yourself registered and GST has to be paid.
Q15. Can any unregistered transporter having a turnover below Rs. 20 lakh carry the goods for a registered dealer?
Ans. Yes, GTA can carry the goods. GST on GTA services is liable to be paid on RCM basis by the recipient. The supply of services of
A call Cally the goods.851
goods transport by road transporter other than a GTA and a courier is exempted under Notification No. 9/2017-Central Tax (rate).
Q16. Whether re-imbursement of expenses to staff comes under RCM?
Ans. Re-imbursement is an expense in the course or furtherance of business and if the same is agai
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d get registered and also pay GST on taxable supply.
Q20. Whether the registration under GST is compulsory by Transport Service Provider.
Ans. No, if the entire services supplied by the transporter are covered under the reverse charge mechanism under Section 9(3).
Will from
Q21. Will from 1/7/17, my corner kiranewala charge me GST on goods or services depending on his turnover or both
and give me an authentic/printed memo for purchases?
Ans. Liability for registration under GST arises if the aggregate turnover is more than Rs. 20 Lakh. If the corner kiranewala has
turnover greater r than I
Rs. 20 lakh in the
preceding financial year he is liable to be registered, charge GST and provide you an
invoice for your purchase.
Q22. How will I know if his turnover is below Rs. 20 lakh and if he is exempt from GST and that he will not charge me any
GST?
Ans. Person having turnover over Rs. 20 lakh will take registration and registration certificate will be displayed at a prominent l
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issued in accordance with the provisions of
Section 31(3) of the CGST Act, 2017.
Q26. Do traders having turnover less than Rs. 20 lakh need to get registered under GST? If not, how can they purchase
primary goods from other states without having GST Registration No?
GST
NATION
TAX
MARKET
Ans. Traders having turnover of less than Rs. 20 lakh can buy from other States also without registration except in case of those
goods which are subject to reverse charge.
Q27. Do I, a Mutual fund Distributor working in Delhi, need to register under GST, having income Less than Rs. 20 lakh
but working for offices that are registered in Mumbai and have branch offices in Delhi?
Ans. If you are supplying services to the branch office in the same State, it will be Intra-State supply and you will not be liable for
registration. If you are making Inter-State supply, you will be liable for registration and benefit of threshold exemption would not
be admissible.
Q28. We are a private ltd. Co. h
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same?
rifv
Ans. As you are business entity and availing GTA services you are liable to pay GST on GTA services on reverse charge basis and
therefore liable to be registered. Section 24 of CGST Act, 2017 may be referred.
Q31. Please clarify the position of GST in case of licensed Tour Guides having registered office in one state but
providing services Pan India?
Ans. If the presence of tour guide is required in each State and he is supplying services from those States then registration
requirement in each state would be there.
Q32. If I already have a GSTIN, do I need to register separately as an Input Service Distributor?
Ans. Yes, as per Section 24(viii) of the CGST Act 2017, an Input Service Distributor is required to take separate registration under
the Act.
Transition
Q33. How the deemed credit of available stock and Work in progress (WIP) to be availed by an Assessee?
Ans. The provisions relating to deemed credit are contained in the proviso to section 140(3) of the C
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delivery challan. Document as may be
The goods can
prescribed under Rule 138 of the SGST Rules, 2017 will also have to be carried by the person in charge of the conveyance.
Q36. Government has allowed increase in MRP due to additional incidence of GST. Can it be done for stock lying with
dealers & retailers or only for stock lying with manufacturer or importers?
Ans. The prices can be revised where the incidence of tax has increased under the GST. However, one should adhere the
requirements under other statutes like the Legal Metrology Act also.
Q37. Does tax need to be paid on advances in hand as of June 30th for goods to be supplied from July 1?
Ans. No.
Q38. Builder is demanding balance money due to tax rate changed under GST. Do we have to pay service tax on entire
amount of registration under GST, also if abatement provided before GST is available or not?
Ans. GST is operational from 01.07.2017. Only on the balance amount GST will be applicable on future payments. For t
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nth prior to appointed date?
Under transitional provisions all such excess ITC and Cash can be carried forward and GST can be paid from this amount.
Q42. Will the facility of deemed credit of 60/40 percent of CGST under Rule 117(4) CGST Rules be available to both
traders and manufacturers?
Ans. The facility will be available to all persons other than manufacturers or supplier of services. Proviso to Section 140(3) of CGST
Act, 2017 refers.
Q43. There is a GST of 28% on a product of MRP Rs.100 and the costing price of that product is Rs. 90.90/- (taxable
value + 14.5% VAT) so the taxable value of that product will be 79.38 and if the GST of 28% will be added to the
amount without adding any profit then it will be 79.38+22.22 (28% GST) and the total value of the product will be
Rs. 101.60/- which is higher than MRP. So how it will be sold at the value higher than the MRP?
Ans. MRP can be revised albeit with certain precautions and for only for certain time period. Press Note of
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Ans. GST is payable on services supplied after 01.07.2017.
Q46. Certain fabrics were exempt from payment of central excise duty vide Notification No. 30/2004-CE dated
09-07-2004. This exemption was subject to the condition that the manufacturer has not availed Cenvat credit
of duty paid on inputs. Thus the said exemption was not unconditional. Will ITC @40% of CGST be admissible to
the taxable person in respect of such fabrics held in stock?
Ans. Yes, ITC would be admissible.
Miscellaneous
Q47. When would advance ruling applications submission begin?
Ans. The Government is in the process of constituting the Authority. It would be notified soon.
Q48. When are the recommendations of the sector wise task force expected to be submitted to the GST Council. Can
representations still be made to the sectoral task force?
Ans. Representation can be submitted to the sectoral working groups.
Q49. How will I know whatever GST I pay is really paid to government by various makers/sellers
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