Goods and Services Tax

Question 12 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Can a manufacturer transfer have finished goods sent for testing purpose to the premises of any other taxable person? Ans. Yes, a manufacturer can transfer finished goods sent for testing purpose to the premise of any other registered person on payment of tax in India or without payment of tax for exports within six months (or within the extended period of maximum two mon

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Question 11 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What happens if the job worker does not return the goods within the specified time? Ans. Tax will be payable by the job worker on the said goods if they are not returned to the place of business of the manufacturer within six months (or within the extended period of maximum two months) from the appointed day – Section 141(1), 141(2) – Statutory Provisions, Acts, Rules, Re

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Question 10 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the existing law are returned after completion of job work after the appointed day? Ans. No tax will be payable by the manufacturer or the job worker under the following circumstances: – (i) Inputs/ semi-finished goods are sent to the job worker in ac

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Question 9 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within six months? If, say, goods are returned in GST regime by a buyer within six months from appointed day, will it become taxable in GST? Ans. Where tax has been paid under the existing law [CST, in this case] on any goods at the time of sale, not being earlier than six months

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Question 8 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. A registered person has excess ITC of ₹ 10, 000/- in his last VAT return for the period immediately preceding the appointed day. Under GST he opts for composition scheme. Can he carry forward the aforesaid excess ITC to GST? Ans. The registered person will not be able to carry forward the excess ITC of VAT to GST if he opts for composition scheme – Section 140(1). – St

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Question 7 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Will ITC be allowed to a service provider on VAT paid inputs held as stock on

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Question 6 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Give two examples of registered taxable persons who are not liable to be registered under the existing law (Central Excise / VAT) but are required to be registered under GST? Ans. A manufacturer having a turnover of say ₹ 60 lakh who is enjoying SSI exemption under the existing law will have to be registered under GST as the said turnover exceeds the basic threshold of

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Question 5 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Assuming the registered person has wrongly enjoyed the credit (Refer to Q4) u

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VAT credit was not available on items X & Y as capital goods in the existing law (Central Excise). Since they are covered in GST, can the registered taxable person claim it now? – Question 4 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. VAT credit was not available on items 'X' & 'Y' as capital goods in the existing law (Central Excise). Since they are covered in GST, can the registered taxable person claim it n

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A registered person, say, purchases capital goods under the existing law (Central Excise) in the June quarter of 2017-18. Though the invoice has been received within 30th June but the capital goods are received on 5th July, 2017 (i.e. in GST regime). Will such a person get full credit of CENVAT in GST regime? – Question 3 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. A registered person, say, purchases capital goods under the exist

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Question 2 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. What are those conditions? Ans. The conditions are that: – (i) the said amount of credit is admissible as input tax credit under this Act; (ii) the registered person has furnished all the returns required under the existing law (i.e. Central Excise and VAT) for the period of six months immediately preceding the appointed date; (iii) the said amount of credit does not relate

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Question 1 – Draft-Bills-Reports – Transitional Provisions – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 24. Transitional Provisions Q 1. Will CENVAT credit (or VAT credit) carried forward in the last return prior to GST under existing law be available as ITC under GST? Ans. A registered person, other than a person opting to pay tax under composition scheme, shall be entitled to take credit in his electronic credit ledger the amount of CENVAT (or VAT credit) credit carried forward i

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Question 25 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 25 – Q 25. What are the security measures being taken by GSTN to ensure security of the GST system? Ans. GST Systems project has incorporated state of art security framework for data and service security. Besides high end firewalls, intrusion detection, data encryption at rest as well as in motion, complete audit trail, tamper proofing using consistent hashi

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Question 24 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 24 – Q 24. Will the return and registration data furnished by the taxpayers on the GST Common Portal will remain Confidential? Ans. Yes, all steps are being taken by GSTN to ensure the confidentiality of personal and business information furnished by the taxpayers on GST Common Portal. This will be done by ensuring Role Based Access Control (RBAC) and encryp

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Question 23 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 23 – Q 23. What material will be provided by GSTN, on various aspects of working on GST portal, for the benefit of taxpayers? Ans. GSTN is preparing Computer Based Training materials (CBT s) which have videos embedded into them for each process to be performed on the GST portal. These will be put on the GST portal as well as on the website of all tax authori

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Question 22 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 22 – Q 22. Will existing taxpayers under Central Excise or Service Tax or State VAT have to apply for fresh registration under GST? Ans. No, the existing taxpayers under taxes which are to be subsumed under GST and whose PAN have been validated from CBDT database will not be required to apply afresh. They will be issued provisional GSTIN by GST portal, which

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Question 21 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. Will tax payer be able to change the GST Practiti

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Question 20 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 20 – Q 20. Will GSTN provide separate user ID and password for GST Practitioner to enable them to work on behalf of their customers (Taxpayers) without requiring user ID and password of taxpayers, as happens today? Ans. Yes, GSTN will be providing separate user ID and Password to GST Practitioner to enable them to work on behalf of their clients without aski

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Question 19 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 19 – Q 19. Will GSTN be providing mobile based Apps to view ledgers and other accounts? Ans. The GST portal is being designed in such a way that it can be seen on any smart phone. Thus ledgers like cash ledger, liability ledger, ITC ledger etc. can be seen on a mobile phone using compatible browsers. – Statutory Provisions, Acts, Rules, Regulations, Taxation

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Question 18 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. Will GSTN provide tools for uploading invoice data on GST portal? Ans. Yes, GSTN will provide spreadsheet like tools (such as Microsoft Excel), free of cost, to taxpayers to enable them to compile invoice data in the same and generate files which can then be uploaded on GST portal. This will be an offline tool which can be used to input/capture in

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Question 17 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. Can invoice data be uploaded on day to day basis? Ans. Yes, GST Portal will have functionality for taxpayers to upload invoice data on any time basis. Early upload of invoices by supplier taxpayer will help receiver taxpayer in early reconciliation of data in Invoices as well as help supplier taxpayer in avoiding last minute rush of uploading retu

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Question 16 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Will GSTN generate a unique identification for ea

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Question 15 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. What will be the role of tax officers from State and Central Govt in respect of the GST system being developed by GSTN? Ans. The officers will use information/ application submitted by taxpayer on GST Portal for following statutory functions: • Approval/rejection for enrollment/registration of taxpayers; • Tax administration (Assessment/

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Question 14 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. What are the functions which a taxpayer will perform at the GST Common Portal being developed and maintained by GSTN for the taxpayers? Ans. GST Common Portal is envisaged as one-stopshop for all requirements under GST for the taxpayers. Illustrative list of functions that can be performed by taxpayers through GST Portal managed by GSTN are: &#964

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Question 13 – Draft-Bills-Reports – GSTN and Frontend Business Process on GST Portal – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. What are the benefits to taxpayers in using the GSPs? Ans. At the outset it is clarified that all required functions under GST can be performed by a taxpayer at the GST portal. GSP is an additional channel being made available for performing some of the functions and use of their services is optional. Some of the specific solution(s) which could be offered by the GSPs to meet specific requirements of Taxpayers for GST compliance are given below: 1. Conversion of their current invoice format generated by their existing accounting software, which could be in csv, pdf, excel, word format, into G

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