Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption?

Question 4 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption? Ans. No. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them. – Statutory Provisions, Acts, Rules, Re

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Who is an e-commerce operator?

Question 2 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. Who is an e-commerce operator? Ans. Section 43B(e) of the MGL defines an Electronic Commerce Operator (Operator) as every person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also a person providing any information or any other services incidental to or in connect

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What is e-commerce?

Question 1 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is e-commerce? Ans. Section 43B(d) of the MGL defines an Electronic Commerce to mean the supply or receipt of goods and/ or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services, univ

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Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?

Question 26 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment? Ans. Yes. The taxpayer would be required to pre-register his credit card, from which the tax payment is intended, with the Common Portal maintained on GSTN. GSTN may also attempt to put in a system with banks in getting the credit card verified by taking a confirmation from the

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What is Tax Collected at Source (TCS)?

Question 25 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 25 – Q 25. What is Tax Collected at Source (TCS)? Ans. This provision is applicable only for E-Commerce Operator under section 43C of MGL. Every E-Commerce Operator needs to withhold a percentage (to be notified later on the recommendation of the GST Council) of the amount which is due from him to the supplier at the time of making actual payment to the supplier. Such withheld

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How will the TDS Deductor account for such TDS?

Question 24 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 24 – Q 24. How will the TDS Deductor account for such TDS? Ans. TDS Deductor will account for such TDS in the following ways: 1. Such deductors needs to get compulsorily registered under section 19 read with Schedule III of MGL. 2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7. 3. The a

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What is TDS?

Question 22 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. What is TDS? Ans. TDS stands for Tax Deducted at Source (TDS). As per section 37, this provision is meant for Government and Government undertakings and other notified entities making contractual payments in excess of ₹ 10 Lakhs to suppliers. While making such payment, the concerned Government/authority shall deduct 1% of the total payable amount and remit it

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What is an E-FPB?

Question 21 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 21 – Q 21. What is an E-FPB? Ans. E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GST. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST,

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What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?

Question 20 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also? Ans. Section 35(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: First self-assessed tax and interest for the previous period; thereafter self-assesse

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What is a CIN and what is its relevance?

Question 19 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. What is a CIN and what is its relevance? Ans. CIN stands for Challan Identification Number. It is a 17 digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account held with them. It is

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What is a CPIN?

What is a CPIN? – Question 18 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. What is a CPIN? Ans. CPIN stands for Common Portal

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Can a challan generated online be modified?

Question 16 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – Q 16. Can a challan generated online be modified? Ans. No. After logging into GSTN portal for generation of challan, payment particulars have to be fed in by the tax payer or his authorized person. He can save the challan midway for future updation. However once the challan is finalized and CPIN generated, no further changes can be made to it by the taxpayer. – Statutory

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Can a taxpayer generate challan in multiple sittings?

Question 15 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 15 – Q 15. Can a taxpayer generate challan in multiple sittings? Ans. Yes, a taxpayer can partially fill in the challan form and temporarily save the challan for completion at a later stage. A saved challan can be edited before finalization. After the tax payer has finalized the challan, he will generate the challan, for use of payment of taxes. The remitter will have option o

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What is the linkage between GSTN and the authorized Banks?

Question 14 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. What is the linkage between GSTN and the authorized Banks? Ans. There will be real time two way linkage between the GSTN and the Core Banking Solution (CBS) of the Bank. CPIN is automatically routed to the Bank via electronic string for verification and receiving payment and a challan identification number (CIN) is to automatically sent by the Bank to the Common Por

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What is an ITC Ledger?

What is an ITC Ledger? – Question 13 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What is an ITC Ledger? Ans. Input Tax Credit

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What is a Cash Ledger?

What is a Cash Ledger? – Question 12 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. What is a Cash Ledger? Ans. The cash ledger

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What are E-Ledgers?

Question 10 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. What are E-Ledgers? Ans. Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have an electronic tax liability register. Once a taxpayer is registered on Common Portal (GSTN), 2 e-ledgers (Cash & Input Tax Credit) and an electronic tax liability register will be

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Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?

Question 9 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. Which date is considered as date of deposit of the tax dues- Date of pr

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What happens if the taxable person files the return but does not make payment of tax?

Question 8 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. What happens if the taxable person files the return but does not make payment of tax? Ans. In such cases, the return is not considered as a valid return. Section 27 (3) of the MGL provides that the return furnished by a taxable person shall not be treated as valid return unless the full tax due as per the said return has been paid. It is only the valid return that woul

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When is payment of taxes to be made by the Supplier?

Question 6 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 6 – Q 6. When is payment of taxes to be made by the Supplier? Ans. Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant debit entry number in his return.

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