Can a company have multiple ISD?

Can a company have multiple ISD? – Question 8 – Draft-Bills-Reports – Concept of Input Service Distributor in GST – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. Can a company have mult

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Is the ISD required to file return?

Is the ISD required to file return? – Question 7 – Draft-Bills-Reports – Concept of Input Service Distributor in GST – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Is the ISD required

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It is not possible many a times to establish a one-to-one link between quantum of input services used in the course or furtherance of business by a supplier. In such situations, how distribution of ITC by the ISD is to be done?

Question 5 – Draft-Bills-Reports – Concept of Input Service Distributor in GST – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. It is not possible many a times to establish a one-to-one link between quantum of input services used in the course or furtherance of business by a supplier. In such situations, how distribution of ITC by the ISD is to be done? Ans. In such situations, distribution would be based on a formula. Firstly, distribution would be done only amongst those recipie

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What are the requirements for registration as ISD?

Question 2 – Draft-Bills-Reports – Concept of Input Service Distributor in GST – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. What are the requirements for registration as ISD? Ans. An ISD is required to obtain a separate registration even though it may be separately registered. The threshold limit of registration is not applicable to ISD. The registration of ISD under the existing regime (i.e. under Service Tax) would not be migrated in GST regime. All the existing ISDs will be

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What is Input Service Distributor (ISD)?

Question 1 – Draft-Bills-Reports – Concept of Input Service Distributor in GST – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 11. Concept of Input Service Distributor in GST Q 1. What is Input Service Distributor (ISD)? Ans. ISD means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory ta

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What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods?

Question 34 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 34 – Q 34. What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods? Ans. The registered person would pay an amount equal to ITC reduced by prescribed percentage point or tax on the transaction value, whichever is higher. But in case of refractory bricks, moulds and dies, jigs and fixtures when these are supplied as scrap, the pe

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What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?

Question 33 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 33 – Q 33. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person? Ans. In case of supply of capital goods or plant and machinery on which input tax credit has been taken, the registered person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by the percentage points as may be

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What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return?

Question 30 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 30 – Q 30. What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return? Ans. In case of mismatch, the communication would be made to the both parties. If the mismatch is not rectified, then the amount will be added to the output liability of recipient in the return for the month succ

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What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt?

Question 28 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 28 – Q 28. What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt? Ans. The registered person has to pay an amount equal to the input tax credit in respect of stocks held on the day immediately preceding the date of exercise of option or date of exemption. In respec

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Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on…………..

Question 27 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 27 – Q 27. Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on………….. Ans. Mr. B is eligible for input tax credit on inputs held in stock and inputs contained in semi-finished or finished goods held in stock as on 21st June, 2017. Mr. B cannot take

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Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC?

Question 26 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 26 – Q 26. Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC? Ans. Mr. A is eligible for input tax credit on inputs held in stock and inputs contained in semi-finished or finished goods held in stock and capital goods (reduced by such percenta

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A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?

Question 24 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 24 – Q 24. A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date? Ans. He can avail ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock and on capital goods (reduced by prescribed percentage points) on the day immediately precedin

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Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person?

Question 23 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 23 – Q 23. Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person? Ans. The input tax credit of goods or services or both attributable only to the purpose of business can be taken by registered person. The manner of calculation of eligible credit would be prov

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If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?

Question 21 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 21 – Q 21. If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported? Ans. Zero-rated supplies have been covered within taxable supplies for the purpose of allowing input tax credit. The scope of zero-rated supply is provided in the Integrated Goods and Services

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Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

Question 20 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 20 – Q 20. Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person? Ans. The input tax credit of goods or services or both attributable only to taxable supplies can be taken by registered person. The manner of calculation of eligible credit would be

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What would be input tax eligibility in cases where there is a change in the constitution of a registered person?

Question 19 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 19 – Q 19. What would be input tax eligibility in cases where there is a change in the constitution of a registered person? Ans. The registered person shall be allowed to transfer the input tax credit that remains unutilized in its electronic credit ledger to the new entity, provided that there is a specific provision for transfer of liabilities. – Statutory Provisions, Acts, Rules, Regula

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What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

Question 18 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 18 – Q 18. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration? Ans. The person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in semi- finished goods and finished goods in stock, held on the day immediately preceding the date of registration. – Statutory Provisio

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