4502 00 00
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GST
Natural cork, debacked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip (including shar
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8714 20
Upto 21-09-2025 – Goods – Schedule 1 – GST @ 5%
GST
Parts and accessories of carriage for disabled persons
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Notes:
As Inserted vide Notification No. 25/2018-In
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6602 00 00
Upto 21-09-2025 – Goods – Schedule 1 – GST @ 5%
GST
Walking-sticks including seat sticks
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Notes:
As Inserted vide Notification No. 25/2018-Integrated Tax (R
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4501
Upto 21-09-2025 – Goods – Schedule 1 – GST @ 5%
GST
Natural cork, raw or simply prepared
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Notes:
As Inserted vide Notification No. 25/2018-Integrated Tax (Rate) dated 31-12-2018 w.e.f. 1-1-2019
Schedules
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2515 11 00
Upto 21-09-2025 – Goods – Schedule 1 – GST @ 5%
GST
Marble and travertine, crude or roughly trimmed
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As Inserted vide Notification No. 25/2018-Integr
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software services
Query (Issue) Started By: – Madhavan iyengar Dated:- 6-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax – GST
Got 8 Replies
GST
X is a software company based in india and has exported services in fy 13-14/14-15/15-16 to its related party which is a separate incorporated company in europe and also claimed refund of input services under rule 5A as it satisfies all conditions
issue: Due to some international tax judgements in European union there is a upward revision in the pricing of all the earlier contracts and the foreign company has paid the additional amount in fy 17-18 after making calculations based on the judgements and this is a significant amount.
this additional amount which is received in m
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as under: –
The period involved is prior to 01.07.2017, that is, the date on which GST Acts came into force. I presume that since you have exported the service under rule 6A of Service Tax Rules, 1994 you would have complied with conditions specified there. Export of services is exempted from payment of service tax. TAx/duty paid on input services and inputs utilised for exporting the service can be claimed under Rule 5A of CENVAT Credit Rules, 2004. Since the exported service is exempted from payment of service tax, the reduction in serviced charges of the exported service will not affect the credit already availed by you and the claim for refund of the credit of tax/duty paid on input services/inputs will not be affected by such reductio
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reverse charge import of services
Query (Issue) Started By: – Madhavan iyengar Dated:- 6-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax – GST
Got 8 Replies
GST
A Company based X in India has imported services from its related party B in Germany, X has discharged IGST on RCM basis based on invoice of ₹ 100000/- ( converted value) issued by B and claimed ITC of say ₹ 18000
Issue: After 4 months B issues a credit note to A reducing the earlier invoice amount.by rs. 50000/-
Is A required to reverse the ITC of IGST taken earlier in proportion to reduction in value of the invoice – ie is IGST reversal of rs. 9000 to be done by A
If no then reasons for same
Reply By Spudarjunan S:
The Reply:
Dear Sir,
No Need to reverse the same. Reasons for the same is provided below:-
The recipient of a supply has to reverse his Input tax credit if his supplier issues him a TAX CREDIT NOTE under section 34 of CGST Act, 2017. Credit notes can be a Tax Credit note o
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ication ??
or in the books you reduce your purchase value in this case it is services received
but what happens in case of goods if it is a local sale and financial credit note issued by supplier and the differential amount is booked as income ??? is gst to be discharged.
Reply By Spudarjunan S:
The Reply:
In case of financial credit notes in domestic supplies, the query of non-payment of consideration arises. However the same financial credit note can be treated as payment of consideration through book adjustments. so no need to reverse the ITC in relation to such financial credit note. There are CESTATdecisions in Service Tax regime supporting the same
Reply By Madhavan iyengar:
The Reply:
thanks
in case of services there is a challenge if we look at sec 16 which talks about conditions for taking credit- if credit note is issued for deficient supply of services for a certain amount then to that extent can it be inferred that some part of services are not received hence rever
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e discount is not includible in taxable value. However you should be in a position to substantiate with documentation that the financial credit note has been issued for discount for taking this stand.
If the credit note has to been issued for doing anything or achieving anything which is been agreed between the supplier and the recipient the department may take a stand that such credit note is consideration for supply of services as per Schedule II – Sl.no.5(e) of CGST Act, 2017.
Reply By Madhavan iyengar:
The Reply:
thanks
but pls see below points in light of section 16 for receipt of goods/services
in case of services there is a challenge if we look at sec 16 which talks about conditions for taking credit- if credit note is issued for deficient supply of services for a certain amount then to that extent can it be inferred that some part of services are not received hence reversal will trigger
i am only referring to cases in which credit note is given with out gst impact but the
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GST on Travel agent
Query (Issue) Started By: – SHARAD ANADA Dated:- 6-1-2019 Last Reply Date:- 9-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Respected Sir
Greetings
I have few queries on travel agents/ tour operator services. PL give your expert opinion.
1) Travel agent booked ( blocked) 100 air tickets for rs 5000 per tickets from IATA agent. IATA agent will pay commission if RS 200 per tickets with 18% GST. He in turns slaes air tickets with his markup of RS 500 per ticket. He raise of bill of 5500/- on his customer. On which amt GST is applicable? Is it applicable on 5500 or only on 500/-.
2) some times it happens that out of 100 tickets he is able to sale only 85 tickets and for balance tickets he will pay c
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age from Dubai based travel agent. Can it be considered as import of service and Gujarat based travel agent have to pay GST on rcm basis?
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Query-wise reply is as under:-
Reply to Query No.1. It is covered under Rule 32(3) of CGST Rules, 2017 which reads as under :-
The value of the supply of services in relation to booking of tickets for travel by air provided by an air travel agent shall be deemed to be an amount calculated at the rate of five per cent. of the basic fare in the case of domestic bookings, and at the rate of ten per cent. of the basic fare in the case of international bookings of passage for travel by air.
Explanation. – For the purposes of this sub-rule, the expres
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GST – 100 Solutions to Taxpayers Problems dated 26-06-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
REGISTRATION
Q. 1 Does aggregate turnover include value of inward supplies received on which RCM is payable?
Ans. Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
Q. 2 What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
Ans. New registration would be required as partnership firm would have new PAN.
Q. 3 A taxable person's business is in many States. All supplies are below ` 10 Lakhs. He makes an inter-State supply from one State. Is he liable for registration?
Ans. He is liable to register if the aggregate turnover (all India) is more than ` 20 lacs or if he is engaged in inter-State supplies.
Q. 4 Can we use provisional GSTIN or do we get new GSTIN?
Can we start using provisional GSTIN
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r aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Ans. Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
Q. 9 If there are two SEZ units within same State, whether two registrations are required to be obtained?
Ans. SEZs under same PAN in a state require one registration. Please see proviso to Rule 8(1) of CGST Rules.
Q. 10 Is an advocate providing inter-state supply chargeable under Reverse Charge liable for registration?
Ans. Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
Q. 11 When is registration in other State required? Will giving service from Nasik to other State require registration in other state?
Ans. If services are being provided from Nasik then registration is required to be taken only
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turnover of all supplies made by you would be added.
Q. 16. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ` 20 lacs?
Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
Q. 17. Is it correct that person dealing exclusively in NIL rated or exempt goods/services liable to register if turnover ` 20/10 Lakh?
Ans. There is no liability of registration if the person is dealing with 100% exempt supplies.
Q. 18 If I register voluntarily though turnover is less than ` 20 Lakhs, am I required to pay tax from 1st supply I make post registration?
Ans. Yes, you would be treated as a normal taxable person.
Q. 19 Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Ans. Separate registration as tax deductor is required.
Q. 20 Is separate registration required for trading and manufacturing b
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omplete its registration formalities from its date of liability to obtain registration.
Q. 25. What If I am not liable to register under GST but I was registered under Service tax?
Ans. You can apply for cancellation of Provisional ID on or before 31st July 2017.
Q. 26. When turnover of agents will be added to that of the principal for registration?
Ans. No.
Q. 27. If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Ans. You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017.
REFUND
Q. 28. I have a pending export refund in Service Tax. What will happen?
Ans. Refunds under earlier laws will be given under the respective laws only.
Q. 29. As an exporter, how do I ensure that my working capital is not blocked as refunds?
Ans. Appropriate provisions have been made in the law by providing for grant o
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The export procedure for Nepal would be same as that to other Countries.
Q. 34. Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
Ans. Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.
Q. 35. How would the sale and purchase of goods to and from SEZ will be treated? Will it be export/input?
Ans. Supply to SEZs is zero rated supplies and supplies by SEZs are treated as imports.
Q. 36. Please clarify status of international export freight under GST as the same was exempt under POPS rules. It is zero rated in most countries.
Ans. POS for transport of goods determinable in terms of Section 12(8) or Section 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies.
Q. 37. When goods are being imported from SEZ who will pay IGST?
Ans. Such supply is treated as import and present procedure of
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thin that State for the same GSTIN only.
Q. 42. In case of service supplied, should the credit be given to the State where it is billed or the state it is rendered?
Ans. Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.
Q. 43. Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Ans. Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
Q. 44. How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR-2 provides for reporting of same by the recipient.
INVOICE
Q. 45. A shop sells taxable & exempt products to the
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h are to be used for construction then delivery challan should be issued.
Q. 49. How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Ans. The supplier may issue credit note to the customers and adjust his liability.
Q. 50. Should we issue Self-invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Ans. For RCM liabilities tax invoice has to be issued on self.
RETURNS
Q. 51. What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance
Ans. Advance refunded can be adjusted in return.
Q. 52. Do registered dealers have to upload sale details of unregistered dealers also in GST?
Ans. Generally not. But required in case of inter-State supplies having invoice value of more than ` 2.50 Lakhs.
Q. 53. How to incorporate two supplies in return for Pharma with same HSN c
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sis. So whether stipend paid to intern will also come under RCM?
Ans. Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.
Q. 58. Salary by partnership firm to Partners as per Income Tax Act liable to GST?
Ans. Salary will not be liable for GST.
Q. 59. Section 9(4) of CGST Act, 2017. Do I need to pay under RCM if I purchase stationary worth ` 100 from an unregistered stationery shop?
Ans. It has been decided that ` 5000/- per day exemption will be given in respect of supplies received from unregistered person.
Q. 60. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?
Ans. Tax is payable on consideration received for the supply.
Q. 61. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?
Ans. GST will be levied on the value charged for the supply only.
Q. 62. How will disposal of sc
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and are required to be separately accounted for.
Q. 66. What is the difference in between 'Nil rated', 'taxable at 0%' and exempted goods and services? Especially in relation with ITC?
Ans. Exempt supply includes Nil rated (taxable at 0%) and non-Taxable supplies and no ITC is available for such supplies.
Q. 67. Will professional tax will be abolished in Maharashtra after introducing of GST?
Ans. Professional tax is not a tax on supply of goods or services but on being in a profession. Professional tax not subsumed in GST.
Q. 68. Employer provides bus service, meal coupon, telephone at residence, gives vehicle for official and personal use, uniform and shoes, any GST?
Ans. Where the value of such supplies is in the nature of gifts, no GST will apply till value of such gifts exceeds ` 50000/- in a financial year.
Q. 69. The definition of composite supply and the description of same under Section 8 differ. Please explain consequences.
Ans. Section 2(30) d
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. What about my dealers stock?
Ans. The dealer will get deemed credit @ 40%/60% of the CGST paid on supply of such goods in GST. If the goods are branded and greater than ` 25,000, full credit using CTD can be availed.
Q. 75. A trader buys from manufacturer not registered in excise as his turnover is below ` 1.5 cr. Then in such case can trader take ITC on stock up to 40%?
Ans. Yes deemed credit will be available subject to satisfaction of other conditions as prescribed.
Q. 76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of 1st July 2017.
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.
Q. 77. If a trader purchases directly from manufacturer & has documents showing excise, will he get full excise credit or 40% of CGST?
Ans. Full transition cre
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nbsp;The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.
Q. 81. What will be the impact of closing stock which has been already paid VAT on 1st July?
Ans. The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.
Q. 82. If in VAT return refund claimed in June 17 & no balance credit in GST. Then what's the position of submission of Form C.
Ans. Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.
Q. 83. Some service was provided on 28-6-2017 but Invoice will be raised on 5-7-2017. Whether we have to charge Service Tax or GST?
Ans. If Point of Tax arises after appointed date, then GST will be chargeable on such supply.
Q. 84. Would we be eligible for credit on Capital Goods in transit and received post GST?
Ans. No provision for such credit is there in
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of Section 140(3) read with Rule 1(4) of Transition Rules are satisfied.
Q. 90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?
Ans. No such provision in GST.
Q. 91. Can ITC of Swach Bharat Cess or Krishi Kalyan Cess be carried forward under GST?
Ans. No
Q. 92. Will Clean Energy CESS on imported Coal @ ` 400 PMT continue to be applicable in GST?
Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess @ ` 400/- per tonne.
Q. 93. Whether closing balance of edu cess and secondary higher education cess prior to 1st March 2015 can be carried forward in GST?
Ans. No it will not be carried forward in GST as it is not covered by definition of “eligible duties and taxes” under Section 140 of the CGST Act.
Q. 94. Can you clarify for 40% benefit on closing stock does 1 year limit apply or not ?
Ans. Deemed credit will be available for all stock procured within
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GST — FAQ on Handicrafts dated 31-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Question 1 : How will imports be taxed under GST?
Answer : All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services.
Question 2 : How will exports be treated under GST?
Answer : All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST by utilizing ITC or in cash at the time of export and claim refund of IGST paid.
Question 3 : How can IGST be paid?
Answer : The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for pay
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an unutilized input tax credit be allowed as refund to exporters?
Answer : Yes. Section 54(3) of the CGST Act, 2017 provides for refund of any unutilised input tax credit of inputs and input services at the end of any tax period except where
(i) goods exported out of the India are subjected to export duty; or
(ii) the exporter claims drawback of CGST or refund of IGST paid on such export.
Question 6 : What is the procedure for claiming refund by exporters?
Answer : Refund can be claimed by filing an application electronically in prescribed form along with required documents through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner. The refundable amount shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. For details Chapter X of the CGST Rules, 2017 relating to refund may be referred to.
In c
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ax credit provisionally accepted will be refunded provisionally within seven days from the date of acknowledgement.
Question 8 : Will the principle of unjust enrichment apply to exports?
Answer : The principle of unjust enrichment is not applicable in case of exports of goods or services as the recipient is located outside the taxable territory.
Question 9 : Today under VAT/CST merchant-exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?
Answer : No, there is no such provision in GST. Tax will be payable on their inward supplies and they can claim refund of the accumulated ITC.
Question 10 : Whether goods sent by a taxable person to a job worker be treated as supply and will they be liable to GST?
Answer : No, the goods sent by a registered person to a job worker is not a supply, as there is no transfer of title and no consideration for the goods is involved. In terms of section 1
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p;Is a job worker required to take registration?
Answer : As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds the prescribed threshold of Rs. 20 lakhs or, as the case may be, Rs. 10 Lakhs.
Question 12 : Whether exemption from all duties of Customs be available on imports under exemption schemes such as EPCG, Advance licence, etc. under GST regime?
Answer : No. Exemption will be available only from Basic Customs Duty. IGST will be payable on such imports. However, the importer can avail ITC of IGST paid and utilise the same or claim refund in accordance with the provisions of the CGST Act, 2017 and rules made thereunder.
Question 13 : Can duty credit scrips received as incentive by exporters such as MEIS, SEIS, etc. be utilised for payment of all duties at the time of import?
Answer : No, these scrips can be utilised only for payment of Basic Custom
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of scrips has to be treated as supply of goods. GST at applicable rate will therefore be payable.
Question 16 : Would GST be payable on goods not intended to be sold, taken out for participation in overseas exhibitions and trade fairs and brought back into India as these goods are meant for exhibition only?
Answer : GST is not payable in such cases. Exporters will need exhibition participation letter and no foreign exchange involved letter from the concerned bank for the purpose of exchange control requirements. At the time of re-import, identity of goods imported with export goods needs to be established to seek exemption from import duty in accordance with Customs provisions. IGST will be exempted at the time of re-import in view of exemptions granted under Customs.
Question 17 : Will an exporter be required to pay GST in case of goods procured from unregistered persons?
Answer : In case of supply by an unregistered person, the registered person i.e., exporter
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FAQ on Health Services & Family Welfare dated 08-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1 What is meant by health care services under GST?
Ans. Under the ambit of GST, healthcare services may refer to any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India, and includes services by way of transportation of the patient to and from a clinical establishment, but does not include hair transplant or cosmetic or plastic surgery, except when undertaken to restore or to reconstruct anatomy or functions of body affected due to congenital defects, developmental abnormalities, injury or trauma.
Q. 2 In what
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Simplification of the processes and overall reduction in entire value chain in the production of the manufacturing of drugs and medicines, medical devices would lead to better healthcare services in the long run. Under GST, duty charged on the import of technical machinery and equipment needed by the health sector would be allowed as a credit. This benefit of the overall reduction in the cost of technology is due to implementation of GST.
Q. 4 How will GST impact life-saving drugs and equipment?
Ans. Life-saving drugs, healthcare services, and medical devices would continue to be tax-free under GST. Hence, the prices will not be impacted in the short run. However, ease of processes and overall reduction in the magnitude of taxes thr
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FAQ on IGST refunds on goods exported out of India dated 23-02-2018
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q.1 What is zero rated supply under GST?
Ans. Under GST, exports and supplies to SEZ are zero-rated as per Section 16 of the IGST Act, 2017. By zero-rating, it is meant that the entire supply chain of a particular supply is tax free, i.e., there is no burden of tax either on the input side or output side.
Q.2 What are the options for getting refunds for persons making zero rated supplies?
Ans. As per Section 16(3) of the IGST Act, 2017, a registered person making a zero-rated supply is eligible to claim refund in accordance with the provisions of Section 54 of the CGST Act, 2017, under either of the following options, namely :
(i) He may supply goods or services or both under bond or letter of undertaking, subject to such conditions, safeguards and procedure as may be prescribe
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on payment of IGST are eligible to get the refund of integrated tax so paid subject to certain conditions related to filing of correct and sufficient information in both GSTN and Customs system.
Q.5 How to file application for getting IGST refund from Customs?
Ans. As per Rule 96 of the CGST Rules, 2017, dealing; with refund of IGST paid on goods exported out of India, the shipping bill filed by an exporter shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India, once both the export general manifest (EGM) and valid return in Form GSTR-3 or Form GSTR-3B, as the case may be, has been filed. Thus, once the shipping bill and the EGM is filed and a valid return is filed, the application for refund shall be considered to have been filed and refund shall be processed.
Q.6 Who would process IGST refund claim?
Ans. The IGST refund module has been designed to have an in-built mechanism to automatically process and grant r
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nderstood that cases where such validations fail are on account of :
(i) Both GSTR-1/Table 6A and GSTR-3B have not been filed for that supply or there are missing invoices in GSTR-1 for that supply.
(ii) Invoices provided in Table 6A of GSTR-1/1E are incomplete, e.g., details of shipping bill and port number/code are not mentioned.
(iii) IGST paid under Table 3.1(b) of GSTR-3B being less than total IGST claimed in Table 6A of GSTR-1/1E of the same period. The claim cannot be more than that of the amount of IGST paid.
Q.9 What steps are to be taken in cases of errors mentioned above and who should be contacted in such cases?
Ans. Correction of errors need to be done in the GST return filed. Table 9A has been provided to carry out those corrections. If the exporter finds that even after the correct filing of return, their shipping bills do not refle
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thereafter transmitted electronically to the Customs system wherein the GST return data is matched with the shipping bill data. If the matching is successful, ICES processes the claim for refund and the relevant amount of IGST paid with respect to each shipping bill or bill of export is electronically credited to the exporter's bank account as registered with the Customs authorities. But, wherever the matching fails on account of some error, the refund do not get sanctioned.
The matching between the two data sources is done at invoice level and any mis-match of the laid down parameters results in one or more of the following errors/responses :
Code
Meaning
SB000
Successfully validated
SB001
Invalid SB details
SB002
EGM not filed
SB003
GSTIN mismatch
SB004
Record already received and validated
SB005
Invalid invoice number
SB006
Gateway EGM not available
Q.12 What should be done for error code SB001?
Ans. This may occur due mention of wrong shipping bill numb
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of shipping bill – invoice record from GSTN. The previous transmission would have already been validated for IGST refund by ICES.
Q.16 What should be done for error code SB005?
Ans. This is the most common error committed by the exporters, which occurs due to mis-match of invoice number as declared in the invoice table of the shipping bill and that declared in the GSTR-1 for the same supply. This can happen due to :
(i) Typographical mistake while entering data in GSTR-1 or the SB.
(ii) The exporter uses two sets of invoices, one invoice for GST and another invoice for exports resulting in mismatch of invoice numbers.
After the implementation of GST, it was explained in the advisories that the details an exporter is required to enter in the “invoice” column while filing the SB pertains to the invoice issued by him compliant to GST Invoice Rules. The invoice number shall be matched with GSTN to validate exports and IGST payment It was convey
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unds shall only be available as a onetime measure for the past SBs. It is advised that the exporters should take care so as not to repeat such mistakes in future and ensure that the same GST compliant export invoice is declared at both ends.
Q.17 What should be done for error code SB006?
Ans. In case of exports through ICDs, if the gateway EGM is not filed electronically or it contains some error, response code SB006 appears. It is noticed that gateway EGM in case of many ICD shipping bills have been manually filed, leading to such refunds not being processed. While the Customs at gateway ports are pursuing this matter with the shipping lines, the exporters can also approach their shipping line to file the EGMs electronically.
Q.18 What is the exporters' role in case of IGST refunds?
Ans. Exporters have to ensure that only correct as well as sufficient information is filed by them in both the GSTN and the Customs system.
(i) The exporter has the opt
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00 (Successfully Validated) is the response code which comes when all the decided parameters like GSTIN, SB number, invoice number etc. match between GSTN and Customs databases. This code implies that the SB is ready for inclusion in the IGST refund scroll. However, it might happen that even with SB000, the SB does not appear in the refund scroll. This could be due to :
(i) The exports might have been made under bond or LUT, hence not eligible for refund.
(ii) If a shipping bill covers multiple invoices, few of the invoices might have been successfully validated with code SB000 whereas other invoices might be containing other types of error/s.
(iii) Composite rate of drawback has been claimed for that SB during the transitional period between 1-7-2017 to 30-9-2017, thus making the SB ineligible for IGST refund.
(iv) Where the IGST claimed amount is less than ₹ 1000/-.
In all the above cases, the scroll amount shall automatically become zer
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n the final scroll, the exporters are advised to furnish correct bank account details to the proper officer (Customs field formation) in order to update the same in ICES.
(iv) As the status of refund claims is available in ICEGATE login, in cases where the corrective action has been already taken by the exporter, he may write to ICEGATE/gateway port Customs for redressal.
(v) in general, any grievance related to the IGST refund claim may be brought to the notice of the Pr. Commissioner or Commissioner of the Customs of the gateway port for necessary action.
Common Errors and Rectification Procedures
Code
Meaning
Rectification
SB000
Successfully validated
SB001
Invalid SB details
Amend GSTR-1 by using Form 9A and fill correct SB details
SB002
EGM not filed
Approach, shipping line for filing of EGM
SB003
GSTIN mismatch
Amend GSTR-1 by using Form 9A
SB004
Record already received and
validated
No action required
SB005
Invalid Invoice Number
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FAQ for GST on IT/ITES dated 18-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Question 1 : Whether software is regarded as goods or services in GST?
Answer : In terms of Schedule II of the CGST Act, 2017, development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software and temporary transfer or permitting the use or enjoyment of any intellectual property right are treated as services.
But, if a pre-developed or pre-designed software is supplied in any medium/storage (commonly bought off-the-shelf) or made available through the use of encryption keys, the same is treated as a supply of goods classifiable under heading 8523.
Question 2 : What are the implications of recognising the development, design, programming, customisation, adaptation, upgradation, enhancement, and implementation of information technology software as a service?
Answer : The primary impli
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oftware code from individuals which he then integrates and supply as a package to clients. These individuals are having small turnover of ₹ 5 to 10 lakh, and therefore are not registered in GST. Whether there is any liability on 'B' in respect of services provided by such individuals?
Answer : If the supplies are made by unregistered suppliers, GST is liable to be paid by the recipient, who is a registered person, under section 9(4) of the CGST Act, 2017. Therefore, in this case 'B' is liable to pay GST on services provided by these individuals. 'B' can claim credit of this tax paid by him on reverse charge.
Question 5 : What is the rate of tax on IT services?
Answer : The rate of GST on IT services is 18%.
Question 6 : Whether exports of software services attract GST?
Answer : Exports and supplies to SEZ units and SEZ developers are zero-rated in GST. Zero-rating effectively means that no tax is payable on exports but the exporter/supplier is entitl
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f service is outside India;
(4) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(5) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with explanation 1 of section 8 of the IGST Act, 2017.
Question 8 : How do I determine the place of supply of IT/ITES services?
Answer : Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and 13 of the IGST Act, 2017. However, if the recipient is not registered and his address is not available on the records of the supplier, the place of supply would be the location of the supplier.
Question 9 : How to determine the location of the recipient?
Answer : Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as locate
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ed to pay the consideration is immaterial.
Question 11 : I am an Indian Company who makes software and sells it outside the country. I have hired a firm (not a related party) 'C' located abroad to facilitate the supply of software in Europe and the USA; would I be liable to pay GST on the payments that I make to this entity abroad?
Answer : No. In this case, 'C' is covered by the definition of 'intermediary' [section 2(13) of the IGST Act, 2017]. The place of supply of such intermediary service is location of the supplier in terms of section 13(8) of the IGST Act, 2017. As 'C' is located outside India, GST is not payable in this case.
Question 12 : What factors determine the location of 'C' (in question 11) as being outside India?
Answer : In terms of section 2(15) of the IGST Act, 2017, the location of a service provider is to be determined by applying the following steps sequentially :
(1) where a supply is made from
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convertible foreign exchange. Whether GST liability arises in this case?
Answer : You are an intermediary and the place of supply of the service provided by you to the principal is in India irrespective of the mode of payment. Hence, GST is payable on the services provided by you as an intermediary to the principal.
Question 14 : I have more than one SEZ unit in different States; do I need to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration?
Answer :
(1) Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However, a single registration can be taken for all your SEZ units within a State, whether located in one SEZ or more than one SEZ.
(2) A person having unit(s) in a Special Economic Zone as well as outside the SEZ in a State shall make a separate application for registration for
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p;I am obtaining online database access services from a company abroad over the net, would I have to pay tax on reverse charge?
Answer : The recipient, if registered, has to pay the applicable IGST on reverse charge basis. If the recipient is not registered, the matter is treated as an online information and database access or retrieval service (OIDAR) and the OIDAR service provider is liable to take registration and pay tax.
Question 18 : When would it be construed that I have made a supply of services involving temporary transfer or permitting the use or enjoyment of any intellectual property right?
Answer : Generally, the End User Licence Agreement (EULA) is the legal contract between a software application author or publisher and the user of that application governing the usage. The agreement is renewable and/or could be amended from time to time. To find out as to whether there is an element of supply involved when software is delivered to its customer, the terms
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oice is issued.
Question 20 : What would be the tax liability on replacement of parts (no consideration is charged from a customer) under a warranty and whether the supplier is required to reverse the input tax credit?
Answer : As parts are provided to the customer without a consideration under warranty, no GST is chargeable on such replacement. The value of supply made earlier includes the charges to be incurred during the warranty period. Therefore, the supplier who has undertaken the warranty replacement is not required to reverse the input tax credit on the parts/components replaced.
Question 21 : An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to 'D', who bills the OEM for the services he provides to the customer. What is the tax liability of 'D'?
Answer : 'D' is providing service to the OEM. GST is payable on the value of any supplies made by
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f the supplier to the recipient, the supply could be visualized as consisting of two distinct supplies. First supply – the different branches of the supplier located across different States are making the supply to the main branch which entered into a contact or an agreement with the recipient for the supply of such service. Second supply – main branch is making a supply to the customer. GST is to be levied accordingly. In such a scenario, the main branch would get input tax credit of GST paid by the other branches on supplies made by them to the main branch.
Question 24 : In the scenario envisaged in previous question, the main branch is said to be entitled to ITC of the GST paid by the other branches. Thus, it is a revenue neutral situation. What are the valuation guidelines for such services?
Answer : The second proviso to rule 28 of the CGST Rules, 2017 provides that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be de
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GST — FAQ on Mining dated 31-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
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 : Ca
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om unregistered suppliers. As the mine owner who is paying tax under composition scheme is registered, the recipients need not pay GST on reverse charge mechanism.
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 l
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the same Permanent Account Number, to be computed on all India basis but excludes Central tax, State tax, Union territory tax, integrated tax and compensation cess.
Question 12 : Will the buyer of goods from 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 buye
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ce for supply of goods from a mining lease holder or it will be applicable on the amount of advance received by the mining company for booking the order?
Answer : No. As per the provisions of section 12(2) of the CGST Act, 2017 the time of supply of goods shall be the 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
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to be made from various loading point and time. In such situation how will the billing person at one point realize how much “balance advance” is available for adjustment while raising invoice at his end at a specific point of time?
Answer : Under GST gross amount of advance is to be reported and tax has to be paid. Advance can be 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 a
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of business, would be allowed as ITC.
Question 24 : What is the time limit for availing input credit under GST?
Answer : As per provisions of Section 16(4) of the CGST Act, 2017 the ITC is not available after the due date of furnishing the return for the month of September of the next year or furnishing of the annual return, whichever is earlier.
Question 25. Would the net outstanding 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 tax on 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, environme
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transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer irrespective of the ownership of the transporting vehicle?
Answer : In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply where the consideration will be inclusive of the transportation cost. Therefore, GST on forward charge will be payable by the supplier of the mineral and credit will be available to 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
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be eligible to take ITC under GST?
Answer : Rigs, capitalized in the books of accounts as capital goods are used in the course or furtherance of business. Hence, it will be eligible as capital goods and ITC will be available under GST.
Question 31. Will ITC be available for holding Environmental Clearance (EC) and Forestry Clearance (FC) meetings and for obtaining 'consent to operate' the Mines?
Answer : Yes, ITC on expenses incurred in the course or furtherance of business 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 I GST?
Answer :&ems
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g of returns, as huge mines are located throughout the districts in the country, especially in rural and backward areas, and the problem will be aggravated as the huge number of mines are operating without any IT infrastructure?
Answer : Returns may be filed from the central office of the Company which are usually located in areas with infrastructure required for filing such returns.
Question 36. Whether GST TDS will be applicable on Works Contract Jobs (to be renamed as Supply of Services) in case of PSUs, since such GST TDS U/s. 51(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 no
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will be able to distribute the available credit even if the invoices are received after the appointed day.
Question 39. In Table 5(b) of GST-TRAN-1, the details of Form C, F and H/I are to be given for the period April 15 to June 17 (i.e. for 27 months) which would be a voluminous task. Reasons of furnishing the details for last 27 months may please be clarified?
Answer : In cases where sales were covered by Forms C, F, H and I, the input tax credit has remained in the account of the taxpayer because the taxpayer has availed of the benefit of concessional rate/nil rate of tax on the sale/stock transfer under CGST 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
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laimed as refund under the Central Excise Law.
Question 42. Whether credit of Green Cess (Clean Energy Cess) paid on coal and available at the time of transition be eligible for being carried over?
Answer : No. Credit of Clean Energy Cess cannot be carried forward on transition.
Question 43. Whether stock held by mining companies on which Clean Energy Cess has been paid be chargeable to compensation cess in GST regime?
Answer : Yes. Compensation cess will be charged on supply of such stock.
Question 44. Can supplies of coal under a particular order or under FSA (Fuel Supply Agreement) be eligible under the definition of 'continuous 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 Com
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te. Clarity on the same may be provided by the Government
Answer : Chapter 68 covers value added articles of sandstone etc. which are further worked other than by way of roughly trimmed or merely cut into blocks or slabs.
Question 48. Whether supply of HSD free of cost for mining operation would attract GST and whether the input tax credit would be available for GST so charged by the Service provider?
Answer : HSD is outside GST and therefore, input tax credit would not be admissible.
Question 49 : Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose?
Answer : Credit will not be available if these goods are supplied for construction of an immovable property. But if these are temporarily placed for protective purposes, credit will be available.
Question 50 : As per Section 54(3), it is clear that no refund of ITC will be available for export in the cases
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FAQ on Railways dated 07/07/2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1 What is Goods and Services Tax (GST)?
Ans. It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
Q. 2 What is the taxable event under GST?
Ans. Taxable event under GST is supply of goods or services or both except those specifically exempted. CGST and SGST/ UTGST will be levied on intra-State supplies. IGST will be levied on inter-State supplies.
Q
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roperty
* Sale of Scrap
Q. 6 In which class and category of trains, GST is applicable?
Ans. GST is applicable on total fare of AC and First class only of all categories of trains. GST is not applicable in other classes like second sleeper, second class (reserved & unreserved) etc.
Q. 7 What is the rate of GST on passenger fare?
Ans. GST is levied @ 5% on the total passenger fare of AC and First class.
Q. 8 Whether any difference of fare shall be collected if the ticket has been booked before 1-7-2017?
Ans. No
Q. 9 If the ticket is booked on or after 1-7-2017, whether refund of GST is applicable in case of cancellation of ticket?
Ans. Yes, however GST would be levied on the cancellation/clerkage charge.
Q.
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ls, defence and military equipments, etc.
* On Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways.
* On Inter-state movement of trains between stations/workshops/sheds/ depots, etc., for the purpose of :
(1) Carrying goods or passengers or both; or
(2) For repairs and maintenance;
Q. 13 How has Indian Railway registered in GST? How are the GST compliances ensured?
Ans. Ministry of Railway has initiated process of Registration in each State/UT. Provisional GSTIN numbers of Ministry of Railways in each State/UT are already notified. In each State/UT, General Manager of a Zonal Railway has been nominated as
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FAQ (short) on GST Registration dated 16-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1. I have applied for registration and have not received ARN? What shall I do?
Ans. Please complete your application procedure, ARN will be generated
Q. 2 I have not received ARN or have received ARN but not GSTIN, how do I supply goods or services or both?
Ans. You can supply goods or services or both on invoice without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon
Q. 3 I have migrated and received provisional ID but not GSTIN, how do I supply goods or services or both?
Ans.
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FAQs on Relaxation of Legal Metrology (Packaged Commodities) Rules, 2011 for facilitation of implementation of GST dated 12-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1 What is MRP?
Ans. MRP is the maximum retail sale price inclusive of all taxes.
Q. 2 Whether GST is included in MRP?
Ans. Yes. The MRP on a pre-packaged commodity is inclusive of all taxes that can be levied from the consumer, including the GST.
Q. 3 Whether any retailer may charge GST over MRP?
Ans. No. GST is included in MRP and is not to be charged over MRP.
Q. 4 Is it allowed to revise the MRP if there is any price change after coming into force of the GST law?
Ans. With coming into force of the GST law, i
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have to issue two advertisements in one or more newspapers and intimate the Director Legal Metrology and Controllers of Legal Metrology in the states.
Q. 5 How new MRP will be calculated for the purposes of labeling?
Ans. New MRP of unsold stock manufacture/packed/imported prior to 1st July, 2017 should not be calculated mechanically but after factoring in and taking into consideration extra availability of input tax credit under GST [including deemed credit available to traders under provision to sub-section (3) of section 140 of the CGST Act, 2017].
Q. 6 How upward revision of prices can be displayed?
Ans. After declaration of the price by the manufacturer/Packer/Importer by complying with the procedure explained in answers
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e case may be or a Wholesaler/Retailer shall affix the sticker displaying reduced MRP as per the price fixed and communicated by the Manufacturer/Packer/Importer.
Q. 8 Does the order on MRP issued by the department of Consumer Affairs apply to all the goods?
Ans. The order applies only to the goods sold in the pre-packaged form, excluding scheduled formulations and non-scheduled formulation covered under the drugs (price control) order. Commodities sold in loose condition are not covered under the said order.
Q. 9 What is the time limit for display of revision of MRP through stickers/stamps/online printing, on unsold stocks?
Ans. The time limit is 30th September, 2017 or till the stock remains unsold, whichever is earlier.
Q.
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RECENT AMENDMENTS IN ‘INTEGRATED GOODS AND SERVICES TAX RULES, 2017
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 5-1-2019
Introduction
The 'Integrated Goods and Services Tax Rules, 2017' ('Rules' for short) was made by the Central Government and notified vide Notification No. 04/2017-Integrated Tax, dated 28.06.2017. The said Rules have been further amended vide Notification No. 12/2017-Integrated Tax, dated 15.11.2017 with effect from 15.11.2017.
Now the Central Government amended the said Rules in accordance with the decisions taken in the recent GST Council. The said amendment has been notified vide Notification No. 04/2018-Integrated tax, dated 31.12.2018. The said Rules came into effect from 01.01.2019.
The amendment inserted new rules from 4 to 9 after Rule No. 3. The said Rules deal with the following-
* Supply of services in relation to immovable property – Section 12(3) of IGST Act – New Rule No.4;
* Place of supply of services
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state agents,
any service provided by way of-
* grant of rights to use immovable property; or
* for carrying out or co-ordination of construction work; or
(b) lodging accommodation by a hotel, inn, guest house, home stay, club or campsite, by whatever name called, and including a houseboat or any other vessel ; or
(c) accommodation in any immovable property for organizing any marriage or reception or matters related thereto, official, social, cultural, religious or business function including services provided in relation to such function at such property; or
(d) any services ancillary to the services referred to in clauses (a), (b) and (c)
where such immovable property or boat or vessel is located in more than one State or Union territory, shall be taken as being in each of the respective States or Union territories.
In the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of th
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uch services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the area of the immovable property lying in each State or Union territory;
* in case of services provided by way of lodging accommodation by a house boat or any other vessel and services ancillary to such services, the supply of services shall be treated as made in each of the respective States or Union territories, in proportion to the time spent by the boat or vessel in each such State or Union territory, which shall be determined on the basis of a declaration made to the effect by the service provider.
Place of supply of services provided by way of event (Rule 5)
The supply of services attributable to different States or Union territories in the case of-
* services provided by way of organization of a cultural, artistic, sporting, scientific, educational or entertainment event , including supply of services in relation to a conference, fair exhi
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nstalled in more than one State or Union territory and a consolidated amount is charged for supply of such services, shall be taken as being in each of the respective States or Union territories, and in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined in the following manner-
* The number of points in a circuit shall be determined in the following manner-
* in the case of a circuit between two points or places, the starting point or place of the circuit and the end point or place of the circuit will invariably constitute two points;
* any intermediate point or place in the circuit will also constitute a point provided that the benefit of the leased circuit is also available at that intermediate point;
* The supply of services shall be treated as made in each of the respective States or
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erritories, and the proportion of value attributable to each such State and Union territory in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, shall be determined in the following manner-
* in the case of services supplied on the same goods, by equally dividing the value of the service in each of the States and Union territories where the service is performed;
* in the case of services supplied on different goods, by taking the ratio of the invoice value of goods in each of the States and Union territories, on which service is performed, as the ratio of the value of the service performed in each State or Union territory;
* in the case of services supplied to individuals, by applying the generally accepted accounting principles.
The proportion of value of services attributable to different States or Union territories in relat
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rovisions of rule 4, mutatis mutandis.
The proportion of value of services attributable to different States or Union territories in relation events (Rule 9)
The proportion of value attributable to different States or Union territories, in the case of-
* supply of services by way of admission to, or
* organization of a cultural, artistic, sporting, scientific, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and
* of services ancillary to such admission or organization,
where the location of the supplier of services or the location of the recipient of services is outside India, and where such services are provided in more than one State or Union territory, in the absence of any contract or agreement between the supplier of service and recipient of services for separately collecting or determining the value of the services in each such State or Union territory, as the case maybe, shall be determined by applying the provisions
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FAQs (Short) on Services dated 06-09-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1 Will GST be charged on actual tariff or declared tariff for accommodation services?
Ans. Declared or published tariff is relevant only for determination of the tax rate slab. GST will be payable on the actual amount charged (transaction value).
Q. 2 What will be GST rate if cost goes up (more than declared tariff) owing to additional bed.
Ans. GST rate would be determined according to declared tariff for the room, and GST at the rate so determined would be levied on the entire amount charged from the customer. For example, if the declared tariff is ₹ 7000 per unit per day but the amount charged from the customer on account of extra bed is ₹ 8000, GST shall be charged at 18% on ₹ 8000.
Q. 3 Where will the declared tariff be published?
Ans. Tariff declared anywhere, say on the websites through which business is being procured or printed on tariff c
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2017-Central Tax (Rate), dated the 28th June, 2017 entry 34, GST on the service of admission into casino under Heading 9996 (Recreational, cultural and sporting services) has been levied @ 28%. Since the Value of supply rule has not specified the method of determining taxable amount in casino, Casino Operators have been informed to collect 28% GST on gross amount collected as admission charge or entry fee. The method of levy adopted needs to be clarified.
Ans. Relevant part of entry 34 of the said CGST notification reads as under:
“Heading 9996 (Recreational, cultural and sporting services) – …
(iii) Services by way of admission to entertainment events or access to amusement
facilities including exhibition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as Indian Premier League and the like. – 14%
(iv)…
(v) Gambling. – 14 %”
As is evident from the notification, “entry to casi
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8377; 100, GST leviable will be ₹ 28/-.
Q. 9 Whether for the purpose of entries at Sl. Nos. 34(ii) [admission to cinema] and 7(ii)(vi)(viii) [Accommodation in hotels, inns, etc.], of Notification No. 11/2017-C.T. (Rate), dated 28th June, 2017, price/declared tariff includes the tax component or not?
Ans. Price/declared tariff does not include taxes.
Q. 10 Whether rent on rooms provided to in-patients is exempted? If liable to tax, please mention the entry of CGST Notification No. 11/2017-C.T. (Rate)
Ans. Room rent in hospitals is exempt
Q. 11 What will be the rate of tax for bakery items supplied where eating place is attached – manufacturer for the purpose of composition levy?
Ans. Any service by way of serving of food or drinks including by a bakery qualifies under section 10(1)(b) of CGST Act and hence GST rate of composition levy for the same would be 5%
Q. 12 Whether homestays providing accommodation through an Electronic Commerce Operator, below threshold limit
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]
3. The books are printed/publi-shed/sold on paying copyright fees to a foreign publisher for publishing Indian edition (same language) of foreign books. [e.g. Penguin (India) Ltd. pays fees to Routledge (London)]
The books are printed/publi-shed/sold on paying copyright fees to a foreign publisher for publishing Indian language edition (translated). [e.g. Ananda Publishers Ltd. pays fees to Penguin (NY)]
Ans. The supply of books shall be treated as supply of goods as long as the supplier owns the books and has the legal rights to sell those books on his own account.
Q. 14 Whether legal services other than representational services provided by an individual advocate or a senior advocate to a business entity are liable for GST under reverse charge mechanism?
Ans. Yes. In case of legal services including representational services provided by an advocate including a senior advocate to a business entity, GST is required to be paid by the recipient of the service un
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FAQ for GST on Tourism Consumers dated 07-07-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. – What rates will be applicable for accommodation in various hotels/guest houses/inns, etc. in India?
Ans. – The GST rates applicable for accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes will depend upon the tariff per unit per day declared by the respective accommodation establishment. The slabs of GST rates applicable are given in the table below :
S. No.
Declared Tariff (per unit per day)
GST rates applicable
1
Less than ₹ 1000
Nil
2
₹ 1000 and above but less than ₹ 2500
12%
3
₹ 2500 and above but l
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er day and 40% discount is available on the same, then GST rate of 28% (for tariff of ₹ 7500/- and above) will be applicable on ₹ 6000/- i.e. on the actual tariff charged. Therefore, the actual billing amount will be ₹ 6000/- + (28% of 6000) = ₹ 7680/-
Q. – What rates will be applicable for restaurants?
Ans. – Supply of Food/Drinks in Restaurants will be charged as per the rates given in the following table :
S. No.
Description
GST rates applicable
1
Food/Drinks in restaurant not having the facility of air conditioning or central heating at any time during the year and not having the license to serve liquor
12%
2
Food/drinks in restaurant having licence to serve liquor
18%
3
Food/drinks in restaurant hav
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ition of cinematograph films, theme parks, water parks, joy rides, merry-go rounds, go-carting, casinos, race-course, ballet, any sporting event such as IPL and the likes, GST rate of 28% will be applicable.
(Source : Schedule of rates for services, Notification No. 11/2017-Central Tax (Rate), dated June 28th, 2017)
Q. – What rates will be applicable for travel by air?
Ans. – The GST rates applicable on air tariffs are as below :
S. No.
Description
GST rates applicable
1
Travel by economy class
5%
2
Travel by other than economy class
12%
(Source : Schedule of rates for services)
Q. – What rates will be applicable for travel by railways/other modes of public transport?
Ans. – The GST rates applicable on train tariffs and other
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FAQ for Traders dated 16-08-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q 1. How will GST benefit the Trading Community?
Ans. Under GST, a trader would be entitled to avail input tax credit paid on their domestic procurements of goods and services unlike the present indirect tax regime. Presently, a significant portion of indirect taxes namely Central Excise and Service Tax form part of the cost component for a trader. This will not be the case under GST. He will now be able to take credit of all taxes paid by him.
In respect of imports, the landed cost is expected to reduce significantly under GST. Hence, the traders will gain significantly in terms of input tax credit on their operating expenses thereby decreasing their operating costs.
CST which was non-creditable has been subsumed in GST. This will be a huge benefit for the traders. Entry tax has also been subsumed in GST. Removal of CST and entry tax shall immensely benefit the traders. Traders
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orm GSTR-1, made by the trader depends upon the nature of supplies made. The provisions are as follows:
i) intra-State supplies to consumers (B2C supplies) – tax-rate wise summary;
ii) inter-State supplies to consumers (B2C supplies) of value up to ₹ 2.5 lakhs – State-wise and tax-rate wise summary;
iii) inter-State supplies to consumers (B2C supplies) of value above ₹ 2.5 lakhs – specified invoice wise details;
iv) supplies to resellers (B2B) – specified invoice wise details.
Q 5. Under GST, will traders be required to declare their IEC at the time of imports and exports?
Ans. For the time being both GSTIN and IEC have to be declared. But over a period of time, traders need to declare only their GSTIN instead of IEC at the time of imports and exports.
Q 6. Can traders get the credit of IGST paid at the time of imports for discharging their domestic liabilities under GST? If yes, how?
Ans. Yes. Under GST, traders will be on par with manufacturers. IGST paid at the
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preceding financial year did not cross ₹ 75 Lakhs. In the case of following 9 states, the limit of turnover is ₹ 50 Lakhs in the preceding financial year:-
a) Arunachal Pradesh
b) Assam
c) Manipur
d) Meghalaya
e) Mizoram
f) Nagaland
g) Sikkim
h) Tripura and
i) Himachal Pradesh
Q 9. What is the rate of tax under Composition levy?
Ans. The rate for traders shall be 1% (0.5% CGST plus 0.5% SGST) of the turnover in the state.
Q 10. Who are the persons(traders) not eligible for composition scheme?
Ans. Following persons will not be allowed to opt for composition scheme:
a) supplier of services (except restaurants)
b) a person engaged in making any supply of goods which are not leviable to tax under this Act;
c) a person engaged in making any inter-State outward supplies of goods;
d) a supplier making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and
Thus from traders' point of view, he s
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hs/Rs. 50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?
Ans. No. The option availed shall lapse from the day on which his aggregate turnover during the financial year exceeds ₹ 75 Lakhs/50 Lakhs. Once he crosses the threshold, he shall file an intimation for withdrawal from the scheme in FORM GST CMP-04 within seven days of the occurrence of such event.
Every person who has furnished such an intimation, may electronically furnish at the common portal, a statement in FORM GST ITC-01 containing details of the stock of inputs and inputs contained in semi-finished or finished goods held in stock as well as the capital goods held by him on the date on which the option is withdrawn, within a period of thirty days from the date from which the option is withdrawn.
Q 13. How will aggregate turnover be computed for the purpose of composition?
Ans. It will be computed on the basis of turnover on all India
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take credit on his input supplies, nor issue taxable invoice to his buyer. He is required to issue a bill of supply and cannot charge tax from the recipient. Therefore the person purchasing from him cannot take any credit.
Q 16. Are monthly returns required to be filed by the person opting to pay tax under the composition scheme?
Ans. No. Such persons need to file a simplified quarterly returns in Form GSTR-4. The GSTR-4 needs to be filed electronically on the GSTN common portal by the 18th day of the month succeeding the quarter relating to the supplies.
Q 17. What is the basic information that need to be furnished in Form GSTR 4?
Ans. It should contain details of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable on reverse charge basis in case of purchases made from unregistered persons and tax payable.
Q 18. A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Wil
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GST CMP-02. Persons filing fresh registration application can also give the option in Part B of Form GST REG 01, and this will be treated as an intimation.
Q 20. In case a person has registration in multiple states? Can he opt for payment of tax under composition levy only in one state and not in other state?
Ans. No. Any intimation under sub-rule (1) or sub-rule (3) of Rule 3 of the CGST Rules, 2017 in respect of any place of business in any State or Union territory shall be deemed to be an intimation in respect of all other places of business registered on the same Permanent Account Number.
Q 21. What is the effective date of composition levy?
Ans. There can be three situations which are as follows:
Situation
Effective date of composition levy
Persons who have been granted provisional registration and who opt for composition levy (Intimation is filed under Rule 3(1) in Form GST CMP-01)
The appointed date i.e. 22nd June, 2017
Persons opting for composition levy at the tim
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ace outside India or received from his branch situated outside the State or from his agent or principal outside the State;
(c) the goods held in stock by him have not been purchased from an unregistered supplier and where purchased, he pays the tax under reverse charge mechanism;
(d) he shall pay tax under reverse charge mechanism where he purchases goods or services from an unregistered person;
(e) he was not engaged in the manufacture of notified goods namely icecream and other edible ice, pan masala and tobacco and manufactured tobacco products;
(f) he shall mention the words “composition taxable person, not eligible to collect tax on supplies” at the top of the bill of supply issued by him; and
(g) he shall mention the words “composition taxable person” on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.
Q 23. What is the validity of composition levy?
Ans. The option exercised by
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elve months immediately preceding the appointed day;
(e) the supplier of services is not eligible for any abatement.
Q 25. What is a credit transfer document? How can it help the traders?
Ans. A manufacturer may have cleared some goods to a dealer prior to the GST, and in case a dealer who was not registered under the Central Excise Act, however is registered under CGST Act, 2017. A special provision has been made in the CENVAT Credit Rules, 2004 to take care of such cases. In such a situation, the manufacturer may issue a credit transfer document to the dealer subject to the following conditions:
(a) The value of such goods is higher than rupees twenty-five thousand per piece, bears the brand name of the manufacturer or the principal manufacturer and are identifiable as a distinct number such as chassis / engine no. of a car.
(b) Verifiable records of clearance and duty payment relatable to each piece of such goods is maintained by the manufacturer and are made available for ver
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mediate dealers, is maintained by the dealer availing credit using CTDs.
(g) CTD shall not be issued in favour of a dealer to whom invoice was issued for the same goods before the appointed date.
(h) A dealer availing credit using Credit Transfer Document on manufactured goods shall not be eligible to avail credit under provision of rule 117 (4) of the CGST Rules, 2017 on identical goods manufactured by the same manufacturer available in the stock of the dealer.
(i) The dealer availing credit on the basis of Credit Transfer Document shall, at the time of making supply of such goods, mention the corresponding Credit Transfer Document number in the invoice issued by him under section 31 of the CGST Act, 2017.
Q 26. Traders are presently not entitled to take cenvat credit. They will be having duty paid stock as on 1st July, 2017. However, it is possible that the traders may not have duty paid documents in respect of such stock. Is there any scheme under GST, where such traders will be
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ying documents are not available with the trader
In case of intra-State supplies
* 60% of the Central Tax paid (in case rate of total tax is 18% or 28%)
* 40% of the Central tax paid (in case rate of total tax is 5% or 12%)
In case of inter-State supplies, 30% or 20% of integrated tax paid will be allowed.
Q 27. Will the compliance process under GST be complicated for traders under GST? What measures have been put in place to ease burden of compliance on small traders?
Ans. No. The compliance process will be automated and easy for traders. The following steps have been taken by the Government in this regard.
a) Small traders with a turnover below ₹ 20 Lakhs need not register under GST.
b) An easy to understand and comply composition scheme for traders having turnover upto ₹ 75 lakhs where tax can be paid quarterly as a percentage of turnover.
c) GST seva kendras have been opened in all Commisssionerates (upto range office) under CBEC to help small trader
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terface with the tax officer. Acknowledgment of refund claim will be given in 15 days and the claim will be processed in 60 days failing which interest will be paid. For Exports, provisional refund up to 90% of the claim will be sanctioned upfront without any verification. The amount of refund will be directly credited to beneficiary's bank account.
Q 28. Stock transfers have been made taxable in GST. Will it impact adversely?
Ans. The objective of taxing the stock transfers is just to ensure that the ITC moves along with the supply of goods to the place where a supply is finally consumed. This is to ensure that the taxes accrue to the State where a supply is consumed. If the stock transfers are not taxed, the ITC would not flow to other State along with the supply and trader will not be able to utilise the credit in another State. Therefore, taxing of stock transfers in in the interest of traders and is perfectly revenue neutral for the trader.
Q 29. How will the stock transfers b
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FAQ ON TRANSPORT & LOGISTICS dated 5-1-2018
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q1. I am a single truck owner-operator and I ply my truck mostly between States, carrying the goods booked for my truck by an agent; aggregate value of service which I provided exceeded twenty lakh rupees during last year. Am I supposed to take registration?
Ans. You are not liable to registration, as services provided by way of transportation of goods by road are exempt. Please refer to Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.
Q2. I own a single truck and I rent it to a major player, who provides GTA service; should I take a registration? Does my monthly rental/lease income attract GST?
Ans. Registration is not required since services by way of giving on hire, a means of transportation of goods to a GTA are exempt from tax vide entry No. 22 of Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017.
Q3. I
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ransporter, am I required to maintain any records of my services of transportation?
Ans. Yes, in terms of Section 35(2) of the CGST Act, 2017 you are required to maintain records of the consigner, consignee and other relevant details of the goods. Further, in terms of Rule 56 of the CGST Rules, 2017 you are required to maintain records of goods transported, delivered and goods stored in transit by you along with the GSTIN of the registered consigner and consignee for each of your branches.
Q6. Are intermediary and ancillary services, such as, loading/unloading, packing/unpacking, transhipment and temporary warehousing, provided in relation to transportation of goods by road to be treated as part of the GTA service, being a composite supply, or these services are to be treated as separate supplies.
Ans. The GTA provides service to a person in relation to transportation of goods by road in a goods carriage, which is a composite service. The composite service may include
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d charged separately, whether in the same invoice or separate invoices, they shall be treated as separate supplies.
Q7. As per Notification No. 5/2017-Central Tax, dated 19th June, 2017, the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of Section 9 of the CGST Act, 2017 are exempted from obtaining registration under the said Act. Please clarify whether a GTA providing service in relation to transportation of goods by road under Reverse Charge Mechanism (RCM) can avail of the benefit of this exemption.
Ans. Yes, a GTA providing service in relation to transportation of goods by road under RCM can avail of the benefit of this exemption.
Q8. Can a GTA obtain registration for one vertical (Rail, Cargo, Renting, Warehousing etc.) for which tax needs to be paid while not obtaining registration fo
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ial for a consideration would therefore attract GST regardless of whether ITC has been availed or not.
Q10. Please clarify whether Input Tax Credit is available to the recipient of service, when the GST paid by him is at a concessional rate of 5% under RCM.
Ans. Yes, Input Tax Credit is available in such cases.
Q11. When a GTA hires a truck (with driver) from another GST registered entity for the purpose of providing goods transport service to a registered recipient, whether tax credit is available to the GTA on the GST paid by him to the owner of the truck registered under GST.
Ans. Services by way of giving on hire to a GTA, a means of transportation of goods are exempt from GST under Notification No. 12/2017-Central Tax (Rate), dated 28th June, 2017. When the tax is not payable, the question of taking any tax credit does not arise.
Q12. In terms of Section 12(9) of the IGST Act, 2017 the place of supply of passenger transportation service to a person ot
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opovers do not cause a break in continuous journey. Thus a travel on Delhi-London-New York on a single ticket with a halt at London will be covered by the definition of continuous journey. However, the return journey of New York-London-Delhi will be treated as a separate journey and will be outside the scope of a continuous journey.
Q13. How GST is to be charged on a multi-leg International journey, say Delhi-Dubai-Boston-Dubai-Delhi? Is GST chargeable for the entire journey and discharged at Delhi, or the GST is to be charged for Delhi-Dubai sector alone and discharged at Delhi, or GST is to be charged up to the farthest point of return, i.e. Delhi-Dubai-Boston at Delhi?
Ans. In this case if a single ticket or invoice has been issued for the Delhi-Dubai-Boston then it is a continuous journey even if there is a stopover at Dubai and the tax (CGST + SGST) would be charged at Delhi. The return journey of Boston-Dubai-Delhi would not be a continuous journey. The return journey
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r or not serially numbered, and whether or not containing the address of the recipient of service but containing other information as mentioned under Rule 46 of the Rules ibid. As the electronic tickets issued by the Airlines are in the global standard format, such electronic ticket receipts are not required to be signed or digitally signed.
Q16. Whether the Airlines are required to issue invoice to the customers transaction-wise, (i.e. Airway Bill-wise, Ticket Journey-wise) or a consolidated invoice, capturing the details of all individual invoices for a particular entity, can be issued on a monthly or fortnightly basis?
Ans. A single invoice incorporating the details of all the supplies for a particular entity can be issued subject to provisions of Section 31 of the CGST Act, 2017. In such a case the ticket issued by the Airlines would not take the character of an invoice.
Q17. Would GST be applicable on air travel undertaken on or after 1st July, 2017 on tickets is
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Concessional Tax Rate under CST Act Applies to Inter-State Goods for Mining; Also Valid under GST Regime.
Case-Laws
VAT and Sales Tax
Benefit of concessional rate of tax under CST Act, 1956 –
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GST on employee expenses
Query (Issue) Started By: – Dhruv Dua Dated:- 4-1-2019 Last Reply Date:- 7-1-2019 Goods and Services Tax – GST
Got 6 Replies
GST
Company A reimburses employees for the expenses incurred by them in the field (airfare / travel etc). Some of the invoices are in the personal name of the employee and some in the name of the company.
Whether Company A is required to pay reverse charge on applicable reimbursements (employee pays to Goods transport agency for shifting of goods for example) ?
Reply By KASTURI SETHI:
The Reply:
Yes. Simply explaining who bears freight expenses will pay GST under RCM. The employee is paying to GTA for and on behalf of the Company. The Co.is reimbursing to the employee. The Co.i
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Time of supply for preparing Service Invoice
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 4-1-2019 Last Reply Date:- 5-1-2019 Goods and Services Tax – GST
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GST
XYZ issued Service Invoice towards rental charges for laboratory equipment. The period contract is for the period 31.07.2018 to 02.11.2018 and the Invoice for the same is issued on 01.12.2018. Is it in line with the provisions under GST? If not, on which date invoice was required to be issued?
Reply B
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