Goods and Services Tax

Question 17 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. Whether supply of software would be treated as supply of goods or supply of services under GST law? Ans. Development, design, programming, customization, adaptation, upgradation, enhancement, implementation of information technology software shall be treated as supply of services as listed in Sl. No. 5 (2)(d) of Schedule -II of the model GST law. – Statutory Provision

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Question 16 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Whether Works contracts and Catering services will be treated as suppl

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Question 15 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why? Ans. Transfer of right to use goods shall be treated as supply of service because there is no transfer of title in such supplies. Such transactions are specifically treated as supply of service in Schedule-II of CGST/SGST Act. – Statutory Provisions, Acts, Rules, Regul

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Question 14 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. What are inter-state supplies and intra-state supplies? Ans. Inter-state and intra-state supplies have specifically been defined in Section 7(1), 7(2) and 8(1), 8(2) of the IGST Act respectively. Broadly, where the location of the supplier and the place of supply are in same state it will be intrastate and where it is in different states it will be inter-state supplie

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What are the different types of supplies under the GST law? – Question 13 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. What are

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Question 12 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not? Ans. Yes. Provision of facilities by a club, association, society or any such body to its members shall be treated as supply. This is included in the definition of business in section 2(17) of CGST/SGST Act. – Statutory Provisions, Acts, Rules, Re

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Question 11 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply? Ans. Yes. As per Sl. No.1 of Schedule-I, permanent transfer or disposal of business assets where input as credit has been availed on such assets shall constitute a supply under GST even where no con

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Question 10 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer. Ans. No, because supply is not made by the individual in the course or furtherance of business. Further, no input tax credit was admissible on such car at the time of its acquisition as it was mea

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Question 9 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What do you mean by supply made in the course or furtherance of business ? Ans. Business is defined under Section 2(17) include any trade, commerce, manufacture, profession, vocation etc. whether or not undertaken for a pecuniary benefit. Business also includes any activity or transaction which is incidental or ancillary to the aforementioned listed activities. In additi

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Question 8 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods? Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1) (b). In some cases, possession ma

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Question 7 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Are self-supplies taxable under GST? Ans. Inter-state self-supplies such as stock transfers, branch transfers or consignment sales shall be taxable under IGST even though such transactions may not involve payment of consideration. Every supplier is liable to register under the GST law in the State or Union territory from where he makes a taxable supply of goods or servic

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Question 6 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Import of Goods is conspicuous by its absence in Section 3. Why? Ans. Imp

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Question 5 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST? Ans. Yes. Under certain circumstances such as import of services for a consideration whether or not in the course or furtherance of business (Section 3(1) (b)) or supplies made without consideration, specified under Schedule-I of CGST /SGST Act, whe

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Question 4 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. What are the necessary elements that constitute supply under CGST/SGST Act? Ans. In order to constitute a supply , the following elements are required to be satisfied, i.e.- (i) the activity involve s supply of goods or services or both; (ii) the supply is for a consideration unless otherwise specifically provided for; (iii) the supply is made in the course or furtheranc

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What is a taxable supply? – Question 3 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. What is a taxable supply? Ans. A taxable suppl

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Question 2 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. What is the scope of supply under the GST law? Ans. The term supply is wide in its import covers all forms of supply of goods or services or both that includes sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It also includes import of service. The mode

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Question 1 – Draft-Bills-Reports – Meaning and Scope of Supply – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 4. Meaning and Scope of Supply Q 1. What is the taxable event under GST? Ans. The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the taxable event known as

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Question 46 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 46 – Q 46. What is the difference between casual and nonresident taxable persons? Ans. Casual and Non-resident taxable persons are separately defined in the CGST/SGST Act in Sections 2(20) and 2(77) respectively. Some of the differences are outlined below: Casual Taxable Person Non-resident Taxable Person Occasional undertakes transactions involving supply of goods or services in a state or UT

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Question 45 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 45 – Q 45. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled? Ans. Yes, as per Section 29(5) of the CGST/SGST Act, every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs conta

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Question 44 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 44 – Q 44. Can cancellation of registration order be revoked? Ans. Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of the taxable person or his legal heirs. A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation of registration within 30 days from the date

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Can the registration certificate be downloaded from the GSTN portal? – Question 43 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 43 – Q 43. Can the registr

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Question 42 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 42 – Q 42. Will there be any communication related to the application disposal? Ans. The applica

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Question 41 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 41 – Q 41. What is the process of refusal of registration? Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (2) of section 26 of the CGST Act, any rejection of application for registration by one authority (i.e.

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Question 40 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 40 – Q 40. What will be the time of response by the applicant if any query is raised in the online application? Ans. If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant and to the other tax authority through the GST Common Portal within 3 common working days. The applicant will reply to the q

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Question 39 – Draft-Bills-Reports – Registration – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 39 – Q 39. What will be the time limit for the decision on the on line registration application? Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within three common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have

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