Goods and Services Tax

Question 10 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST? Ans. Yes. In terms of Sub-section (3) of Section 25, a person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. – Statut

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Question 9 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. Whether a person having multiple business verticals in a state can obtain for different registrations? Ans. Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed. – Statutory Provisions, Acts, Rules, Regulations,

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Question 8 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration? Ans. No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 22 of the CGST/SGST Act. – Statutory Provision

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Question 7 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. What is the time limit for taking a Registration under GST? Ans. A person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules. A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prio

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Question 6 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Which are the cases in which registration is compulsory? Ans. As per Section 24 of the CGST/SGST Act, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit: i) persons making any inter-State taxable supply; ii) casual taxable persons; iii) persons who are required to pay tax under reverse charge; iv) electronic commerce

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Question 5 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What is aggregate turnover? Ans. As per section 2(6) of the CGST/SGST Act aggregate turnover includes the aggregate value of: (i) all taxable supplies, (ii) all exempt supplies, (iii) exports of goods and/or service, and, (iv) all inter-state supplies of a person having the same PAN. The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act,

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Question 4 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Who are the persons liable to take a Registration under the Model GST Law? Ans. As per Section 22 of the CGST/SGST Act 2017, every supplier (including his agent) who makes a taxable supply i.e. supply of goods and / or services which are leviable to tax under GST law, and his aggregate turn over in a financial year exceeds the threshold limit of twenty lakh rupees shall be liable to re

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Question 3 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. What will be the effective date of registration? Ans. Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be the date on which he became liable for registration. Where an application for registration has been submitted by the applicant after thirty days fr

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Can a person without GST registration claim ITC and collect tax? – Question 2 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can a person without G

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Question 1 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 3. Registration Q 1. What is advantage of taking registration in GST? Ans. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business: • Legally recognized as supplier of goods or services. • Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both

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Question 25 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 25 – Q 25. When exemption from whole of tax collected on goods or services or

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Question 24 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 24 – Q 24. Does the GST Law empower the Government to exempt supplies from the levy of GST? Ans. Yes. In the public interest, the Central or the State Government can exempt either wholly or partly, on the recommendations of the GST council, the supplies of goods or services or both from the levy of GST either absolutely or subject to conditions. Further the Government can exe

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Question 23 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 23 – Q 23. What are the penal consequences if a person opts for the composition scheme in violation of the conditions? Ans. If a taxable person has paid tax under the composition scheme though he was not eligible for the scheme then the person would be liable to penalty and the provisions of section 73 or 74 shall be applicable for determination of tax and penalty. – Statutor

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Question 22 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 22 – Q 22. How to compute aggregate turnover to determine eligibility for composition scheme? Ans. The methodology to compute aggregate turnover is given in Section 2(6). Accordingly, aggregate turnover means value of all outward supplies (taxable supplies+exempt supplies+exports + inter-state supplies) of a person having the same PAN and it excludes taxes levied under centra

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Can composition tax be collected from customers? – Question 21 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. Can composition t

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Question 20 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 20 – Q 20. Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit? Ans. No, customer who buys goods from registered person who is under composition scheme is not eligible for composition input tax credit because a composition scheme supplier cannot issue a tax invoice. – Statutory Provisions, Acts, Rule

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Can the registered person under composition scheme claim input tax credit? – Question 19 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 19

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Question 18 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. Who are not eligible to opt for composition scheme? Ans. Broadly, five categories of registered person are not eligible to opt for the composition scheme. These are: (i) supplier of services other than supplier of restaurant service; (ii) supplier of goods which are not taxable under the CGST Act/SGST Act/UTGST Act. (iii) an inter-State supplier of goods; (iv) pers

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Question 17 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. Can composition scheme be availed of by a manufacturer and a service supplier? Ans. Yes, a manufacturer can opt for composition scheme generally. However, a manufacturer of goods, which would be notified on the recommendations of the GST Council, cannot opt for this scheme. This scheme is not available for services sector, except restaurants. – Statutory Provisions

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Question 16 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Will a taxable person, having multiple registrations, be eligible to opt for composition scheme only for a few of registrations? Ans. All registered persons having the same Permanent Account Number (PAN) have to opt for composition scheme. If one registered person opts for normal scheme, others become ineligible for composition scheme. – Statutory Provisions, Acts,

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A person availing composition scheme during a financial year crosses the turnover of ₹ 50 Lakhs during the course of the year i.e. say he crosses the turnover of ₹ 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? – Question 15 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. A person availing composition scheme during a financial year

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Question 14 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. What are the rates of tax for composition scheme? Ans. There are different rates for different sectors. In normal cases of supplier of goods (i.e. traders), the composition rate is 0.5 % of the turnover in a State or Union territory. If the person opting for composition scheme is manufacturer, then the rate is 1% of the turnover in a State or Union territory. In ca

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Question 13 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. What is the threshold for opting to pay tax under the composition s

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Question 12 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Can any person other than the supplier or recipient be liable to pay tax under GST? Ans. Yes, the Central/State government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the p

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Question 11 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What will be the implications in case of receipt of supply from unr

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