What is the threshold for opting to pay tax under the composition scheme? – Question 13 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Q
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Can composition tax be collected from customers? – Question 12 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. Can co
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Question 11 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit? Ans. No, customer who buys goods from taxable 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,
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Can the taxable person under composition scheme claim input tax credit? – Question 10 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Que
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Can composition scheme be availed if the taxable person effects inter-State supplies? – Question 9 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. Can composition scheme be availed if the taxable person effects inter-State supplies? Ans. No, composition scheme is applicable subject to the condition that the taxable person does not affect interstate supplies. – Statutory Provisions, Acts, Rules, Regulations, Taxation
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Question 8 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. Will a taxable person be eligible to opt for composition sc
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Who can notify a transaction to be supply of goods and/or services? – Question 7 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question
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Whether supplies made without consideration will also come within the purview of Supply under GST? – Question 6 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 base
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Question 5 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main supplier? Ans. No. In the above case the transaction of supply of watch from consumer to the restaurant will not be an independent supply as the same is not in the course of
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Question 4 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. What will be the implications in case of purchase of goods
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Is the reverse charge mechanism applicable only to services? – Question 3 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q
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Question 2 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. What is the taxable event under GST? Ans. Supply of goods a
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Question 1 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. Where is the power to levy GST derived from? Ans. Article 246A of the Constitution, which was introduced by the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both parliament and state legislatures to make laws with respect to GST. However, -clause 2 of Article 246A read with Article 269A provides exclusive power to the Parliament to
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Question 27 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 27 – Q 27. What are the other legislative requirements for introduction of the GST? Ans. Suitable legislation for the levy of GST (Central GST Bill, Integrated GST Bill and State GST Bills) drawing powers from the Constitution would need to be passed by the Parliament and the State Legislatures. Unlike the Constitutional Amendment which requires 2/3rd maj
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Question 26 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. How are the disputes going to be resolved under the GST regime? Ans. The Constitution (one hundred and first amendment) Act, 2016 provides that the Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute (a) between the Government of India and one or more States; or (b) between the Government of India and any State
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Question 25 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 25 – Q 25. What is GSTN and its role in the GST regime? Ans. GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of GST. The functions of the GSTN would, inter alia, include: (i) facilitating registration; (ii) forwarding the returns to Central and State authorities; (iii) computation and settlement of IGST; (iv) matching of tax payment details with banking network
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Whether the composition scheme will be optional or compulsory? – Question 24 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Qu
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Question 23 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 23 – Q 23. What is the scope of composition scheme under GST? Ans. Small taxpayers with an aggregate turnover in a financial year up to [Rs. 50 lakhs] shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The floor rate of tax for CGST and SGST shall n
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Question 22 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. How will Exports be treated under GST? Ans. Ex
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Question 21 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 21 – Q 21. How will imports be taxed under GST? Ans. Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services ar
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Question 20 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. How will the goods and services be classified under GST regime? Ans. HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2 digit code and the taxpayers whose turnover is ₹ 5 crores and above shal
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Question 19 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 19 – Q 19. What are the benefits available to small tax payers under the GST regime? Ans. Tax payers with an aggregate turnover in a financial year up to [Rs.10 lakhs] would be exempt from tax. [Aggregate turnover shall include the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services and exclude tax
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Question 18 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. Who is liable to pay GST under the proposed GST regime? Ans. Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption, i.e. ₹ 10 lakhs (Rs. 5 lakhs for NE States) except in certain specified cases where the taxable
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Question 17 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 17 – Q 17. How will decisions be taken by GST Council? Ans. The Constitution (one hundred and first amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall have a weightage of 1/3rd
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Question 16 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 16 – Q 16. What is the guiding principle of GST Council? Ans. The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States. It has been provided in the Constitution (one hundred and first amendment) Act, 2016 that the GST Council, in its discharge of various functions, shall
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