Goods and Services Tax

Question 5 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What are the conditions necessary for obtaining ITC? Ans. Following four conditions are to be satisfied by the registered taxable person for obtaining ITC: (a) he is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both; (c) the supplier has actually paid the tax charged in respect of th

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Question 4 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Is credit of all input tax charged on supply of goods or services allowed under GST? Ans. A registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of business, subject to other conditions and restrictions. – Statutory Provisions, Acts, Rules, Regulations, Taxa

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Question 3 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and

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Can GST paid on reverse charge basis be considered as input tax? – Question 2 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can GST paid on re

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Question 1 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 10. Input Tax Credit Q 1. What is input tax? Ans. Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on supply of goods or services or both made to a registered person. It also includes tax paid on reverse charge basis and integrated tax goods and services tax charged on import of goods. It does not include tax paid und

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Question 16 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Should job worker and principal be located in same State or Union territory? Ans. No this is not necessary as provisions relating to job work have been adopted in the IGST Act as well as in UTGST Act and therefore job-worker and principal can be located either is same State or in same Union Territory or in different States or Union Territories. – Statutory Provisions, Acts, Rules, Regul

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Question 15 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Is it compulsory that job work provisions should be followed by the principal? Ans. No. The principal can send the inputs or capital goods after payment of GST without following the special procedure. In such a case, the job-worker would take the input tax credit and supply back the processed goods (after completion of job-work) on payment of GST. – Statutory Provisions, Acts, Rules, Re

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Question 14 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Are the provisions of job work applicable to all categories of goods? Ans. No. The provisions relating to job work are applicable only when registered taxable person intends to send taxable goods. In other words, these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered taxable person. – Statutory Provisions, Acts, Rules, R

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Who is responsible for the maintenance of proper accounts related to job work? – Question 13 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – 13. Who is resp

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Whether intermediate goods can also be sent for job work? – Question 12 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Whether intermediate goods can

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Question 11 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What would be treatment of the waste and scrap generated during the job work? Ans. The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax. – Statutory Provisions, Acts, Rules, Regulations, Taxatio

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Question 10 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Some capital goods like jigs and fixtures are non -usable after their use and normally so

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Question 9 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What happens when the inputs or capital goods are not received back or supplied from the place of business of job worker within prescribed time period? Ans. If the inputs or capital goods are not received back by the principal or are not supplied from the place of business of job worker within the prescribed time limit, it would be deemed that such inputs or capital goods had been supplied

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Question 8 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker? Ans. Principal shall be entitled to take credit of taxes paid on inputs or capital goods sent to a job worker whether sent after receiving them at his place of business or even when such the inputs or capital goods are directly sent to a job worker without their being first brought to

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Question 7 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Under what circumstances can the principal directly supply goods from the premises of job worker without declaring the premises of job worker as his additional place of business? Ans. The goods can be supplied directly from the place of business of job worker without declaring it as additional place of business in two circumstances namely where the job worker is a registered taxable person

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Question 6 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises? Ans. Yes. But the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker. The Commissioner may al

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Question 5 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? Ans. Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which

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Question 4 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Whether the goods of principal directly supplied from the job worker s premises will be included in the aggregate turnover of the job worker? Ans. No. It will be included in the aggregate turnover of the principal. However, the value of goods or services used by the job worker for carrying out the job work will be included in the value of services supplied by the job worker. – Statutory Pr

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Is a job worker required to take registration? – Question 3 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Is a job worker required to take registratio

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Question 2 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Whether goods sent by a taxable person to a job worker will be treated as supply and liable to GST? Why? Ans. It will be treated as a supply as supply includes all forms of supply such as sale, transfer, etc. However, the registered taxable person (the principal), under intimation and subject to such conditions as may be prescribed send any inputs and/or capital goods, without payment of t

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Question 1 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 9. Job Work Q 1. Q 1. What is job work? Ans. Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called job worker and the person to whom the goods belongs is called principal . This definition is much wider than the one given in Notification No. 2

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Question 17 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. Are there any additional powers to tax officers available? Ans. Any authority

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Question 16 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. What will happen if the details remain mismatched? Ans. The value of a supply relating to any payment in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output liability of the said supplier, for the calendar month succeeding the calendar mo

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Question 15 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. What is the concept of matching in e-commerce provisions and how it is going to work? Ans. The details of supplies and the amount collected during a calendar month, and furnished by every operator in his statement will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same calendar month or any preced

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Question 14 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Ans. Yes, every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount co

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