Goods and Services Tax

Question 8 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What is the role of Infosys in GSTN? Ans. GSTN has engaged M/S Infosys as a single Managed Service Provider (MSP) for the design, development and deployment of GST system, including all application software, tools and Infrastructure and for operating & maintaining the system for a period of 5 years from the Go-Live date. – Statutory Provisions, A

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Question 7 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. What will be the role of GSTN in registration? Ans. The application for Registration will be made Online on GST Portal. Some of the key data like PAN, Business Constitution, Aadhaar, CIN/DIN etc. (as applicable) will be validated by the GST Portal online with the respective agency i.e. CBDT, UID, MCA etc., thereby ensuring minimum need for submission

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Question 6 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. What is the interface system between GSTN and the States/CBEC? Ans. In GST regime, while taxpayer facing core services of applying for registration, uploading of invoices, filing of return, making tax payments shall be hosted by GST System, all the statutory functions (such as approval of registration, assessment of return, conducting investigation a

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Question 5 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What services will be rendered by GSTN? Ans. GSTN will render the following services through the Common GST Portal: (a) Registration (including existing taxpayer migration, a process which began on 8th Nov 2016); (b) Payment management including payment Gateways and integration with banking systems; (c) Return filing and processing; (d) Taxpayer mana

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Question 4 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. What is the equity structure and Revenue Model of GSTN? Ans. (a) Equity Structure: – In compliance of the Cabinet decision, GST Network was registered as a not-for-profit, non-Government, private limited company under section 8 of the Companies Act, 1956 with the following equity structure: Central Govt 24.5% State Govts 24.5% HDFC 10% HDFC Bank 10% ICICI Bank 10% NSE Strategic Investment Co 10% LIC Housing Finance Ltd 11% The GSTN in its current form was created after taking approval of the Empowered Committee of State Finance Ministers and Union Government after due deliberations over a long p

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Question 3 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. What is the genesis of GSTN? Requirements of strong IT Infrastructure was discussed in the 4th meeting of 2010 of the Empowered Committee of State Finance Ministers held on 21/7/2010. In the said meeting the EC approved creation of an Empowered Group on IT Infrastructure for GST (referred to as EG) under the chairmanship of Dr. Nandan Nilekani with Additional Secretary (Rev), Member (B&C) CBEC, DG (Systems), CBEC, FA Ministry of Finance, Member Secretary EC and five state commissioners of Trade Taxes (Maharashtra, Assam, Karnataka, West Bengal and Gujarat) as members. The Group was mandated to suggest, inter alia, the modalities for setting up a National Information Utility (NIU/ SPV) for implementing the Common Portal to be called GST Network (GSTN) and recommend the structure and terms of reference for the NIU/ SPV, detailed implement

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control of Government, flexibility in organizational structure, agility in decision making and ability to hire and retain competent human resources. In view of the sensitivity of the role of GSTN and the information that would be available with it, the EG also considered the issue of strategic control of Government over GSTN. The Group recommended that strategic control of the Government over the SPV should be ensured through measures such as composition of the Board, mechanisms of Special Resolution and Shareholders Agreement, induction of Government officers on deputation, and agreements between GSTN SPV and Governments. Also, the shareholding pattern would ensure that the Centre individually and States collectively are the largest stakeholders at 24.5% each. In combination, the Government shareholding at 49% would far exceed that of any single private institution. EG also brought out the need to have technology specification to run this company so that there is 100 percent matching

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ove was considered by the Union Cabinet on 12th April 2012 and approved. The Union cabinet also approved the following: i. Suitable and willing non-government institutions will be identified and firmed up by the Ministry of Finance to invest in GSTN-SPV prior to its incorporation. ii. The strategic control of the Government over the SPV would be ensured through measures such as composition of the Board, mechanisms of Special Resolution and Shareholders Agreement, induction of Government officers on deputation, and agreements between GSTN SPV and Governments. iii. The Board of Directors of GSTN SPV would comprise 14 Directors with 3 Directors from the Centre, 3 from the States, a Chairman of the Board of Directors appointed through a joint approval mechanism of Centre and States, 3 Directors from private equity stake holders, 3 independent Directors who would be persons of eminence and a CEO of the GSTN SPV selected through an open selection process. iv. Relaxation in relevant rules to

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Question 2 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. What was need to create GSTN? Ans. The GST System Project is a unique and complex IT initiative. It is unique as it seeks, for the first time to establish a uniform interface for the tax payer and a common and shared IT infrastructure between the Centre and States. Currently, the Centre and State indirect tax administrations work under different laws

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Question 1 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 23. GSTN and Frontend Business Process on GST Portal Q 1. What is GSTN? Ans. Goods and Services Tax Network (GSTN) is a not-forprofit, non-government company promoted jointly by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments including tax payers and other stakeholders. The

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Question 18 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply? Ans. The location of the recipient of services on the records of the supplier of insurance services shall be the place of supply. So Gurgaon shall be the place of supply. (proviso clause to section 11(13) of th

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Question 17 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply? Ans. If the service is not linked to the account of person, place of supply shall be Kullu i.e. the location of the supplier of services. However, if the service is linked to the account of the person, the place of supply shall be Mum

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Question 16 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. A person in Goa buys shares from a broker in Delhi on NSE (in

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Question 15 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. What will be the place of supply for mobile connection? Can it be the location of supplier? Ans. For domestic supplies: The location of supplier of mobile services cannot be the place of supply as the mobile companies are providing services in multiple states and many of these services are inter-state. The consumption principle will be broken if the location

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Question 14 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply? Ans. In the above case, the place of embarkation will not be available at the time of issue of invoice as the right to passage is for future use. Accordingly, place of supply cannot be the place of embarkation. In such cases, the defau

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Question 13 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. What will be the place of supply of passenger transportation service, if a person travels from Mumbai to Delhi and back to Mumbai? Ans. If the person is registered, the place of supply shall be the location of recipient. If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embark

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Question 12 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. What will be the place of supply of goods services by way of transportation of goods, including mail or courier? Ans. In case of domestic supply: If the recipient is registered, the location of such person shall be the place of supply. However, if the recipient is not registered, the place of supply shall be the place where the goods are handed over for trans

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Question 11 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states? Ans. In case of an event, if the recipient of service is registered, the place of supply of services for organizing the event shall be the location of such person. However, if the recipient is not registered, the place of s

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Question 10 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply? Ans. Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to th

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Question 9 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What is the default presumption for place of supply in respect of unregistered recipients? Ans. In respect of unregistered recipients, the usual place of supply is location of recipient. However, in many cases, the address of recipient is not available, in such cases, location of the supplier of services is taken as proxy for place of supply. – Statutory Provisi

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Question 8 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What is the default presumption for place of supply in respect of B2B supply of services? Ans. The terms used in the IGST Act are registered taxpayers and non-registered taxpayers. The presumption in case of supplies to registered person is the location of such person. Since the recipient is registered, address of recipient is always there and the same can be ta

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Question 7 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle? Ans. In respect of goods, the place of supply shall be the location at which such goods are taken on board. (Section 9 of IGST Act) However, in respect of services, the place of supply shall be the location o

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Question 6 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person? Ans. It would be deemed that the third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. (Section 9 of IGST Act) – Statutory Provisions, Acts, Rules, Regulations, Ta

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What would be the place of supply where goods are removed? – Question 5 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What

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Question 4 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions? Ans. In respect of B2B transactions, the taxes paid are taken as credit by the recipient so such transactions are just pass through. GST collected on B2B supplies effectively create a liability fo

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Question 3 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. What proxies or assumptions in a transaction can be used to determine the place of supply? Ans. The various element involved in a transaction in services can be used as proxies to determine the place of supply. An assumption or proxy which gives more appropriate result than others for determining the place of supply, could be used for determining the place of su

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Question 2 – Draft-Bills-Reports – Place of Supply of Goods and Service – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Why are place of supply provisions different in respect of goods and services? Ans. Goods being tangible do not pose any significant problems for determination of their place of consumption. Services being intangible pose problems w.r.t determination of place of supply mainly due to following factors: (i) The manner of delivery of service could be altered easily. For example, telecom service could change from mostly post-paid to mostly pre-paid; billing address could be changed, billers address could be changed, repair or maintenance of software could be changed from onsite to online; banking services were

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distribution and exhibition of film could be assigned for many states in single transaction or an advertisement or a programme is broadcasted across the country at the same time. An airline may issue seasonal tickets, containing say 10 leafs which could be used for travel between any two locations in the country. The card issued by Delhi metro could be used by a person located in Noida, or Delhi or Faridabad, without the Delhi metro being able to distinguish the location or journeys at the time of receipt of payment; (v) Services are continuously evolving and would thus continue to pose newer challenges. For example, 15-20 years back no one could have thought of DTH, online information, online banking, online booking of tickets, internet,

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