Question 17 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 17 – Q 17. A person becomes liable to pay tax on 1st August, 2017and has obtained registrati
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Question 16 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. What is the ITC entitlement of a newly registered person? Ans. A person applying for registration can take input tax credit of inputs held in stock and inputs contained in semifinished or finished goods held in stock on the day immediately preceding the date of grant of registration. If the person was liable to take registration and he has applied for registration within thirty
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Question 15 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes? Ans. No. ITC on goods or services by a person for construction of immovable property, other than plant and machinery, is not allowed. Plant and machinery cover only apparatus, equipment, and machinery fixed to earth by foundation or structural support, and
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Question 14 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Sometimes goods are destroyed or lost due to various reasons? Can a person take I
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Question 13 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. A taxable person is in the business of information technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle? Ans. No. ITC on motor vehicles can be availed only if the taxable person is in the business of transport of passengers or goods or is providing the services of imparting training
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Question 12 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST? Ans. Yes, except a small list of items provided in the law, the credit is admissible on all items. The list covers mainly items of personal consumption, inputs use of which results into formation of an immovable property (except plant and machinery), telecommunication
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Question 11 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. Where the registered taxable person has claimed depreciation on the tax component
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Question 10 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. What is the time limit for taking ITC and reasons therefor? Ans. A registered person cannot take ITC in respect of any invoice or debit note for supply of goods or services after the due date for furnishing the return under section 39 for the month of September following the end of financial year to which such invoice/invoice relating to debit note pertains or furnishing of the
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Question 9 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. Who will get the ITC where goods have been delivered to a person other than taxable person ( bill to – ship to scenarios)? Ans. It would be deemed that the registered person has received the goods when the goods have been delivered to a third party on the direction of such taxable person. So ITC will be available to the person on whose order the goods are delivered to third person.
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Question 8 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What would happen of the ITC taken by the registered person if he has not paid the consideration along with tax within 180 days from the date of issue of invoice? Ans. The amount of ITC would be added to output tax liability of the person. He would also be required to pay interest. However, he can take ITC again on payment of consideration and tax. – Statutory Provisions, Acts, Rul
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Question 7 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Can a person take input tax credit without payment of consideration for the supply along with tax to the supplier? Ans. Yes, the recipient can take ITC. But he is required to pay the consideration along with tax within 180 days from the date of issue of invoice. This condition is not applicable where tax is payable on reverse charge basis. – Statutory Provisions, Acts, Rules, Regul
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Question 6 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Where the goods against an invoice are received in lots or instalments, how will a r
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Question 5 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. What are the conditions necessary for obtaining ITC? Ans. Following four conditions are to be satisfied by the registered taxable person for obtaining ITC: (a) he is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both; (c) the supplier has actually paid the tax charged in respect of th
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Question 4 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Is credit of all input tax charged on supply of goods or services allowed under GST? Ans. A registered person is entitled to take credit of input tax charged on supply of goods or services or both to him which are used or intended to be used in the course or furtherance of business, subject to other conditions and restrictions. – Statutory Provisions, Acts, Rules, Regulations, Taxa
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Question 3 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 3 – Q 3. Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and
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Can GST paid on reverse charge basis be considered as input tax? – Question 2 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Can GST paid on re
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Question 1 – Draft-Bills-Reports – Input Tax Credit – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 10. Input Tax Credit Q 1. What is input tax? Ans. Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on supply of goods or services or both made to a registered person. It also includes tax paid on reverse charge basis and integrated tax goods and services tax charged on import of goods. It does not include tax paid und
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Question 16 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. Should job worker and principal be located in same State or Union territory? Ans. No this is not necessary as provisions relating to job work have been adopted in the IGST Act as well as in UTGST Act and therefore job-worker and principal can be located either is same State or in same Union Territory or in different States or Union Territories. – Statutory Provisions, Acts, Rules, Regul
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Question 15 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. Is it compulsory that job work provisions should be followed by the principal? Ans. No. The principal can send the inputs or capital goods after payment of GST without following the special procedure. In such a case, the job-worker would take the input tax credit and supply back the processed goods (after completion of job-work) on payment of GST. – Statutory Provisions, Acts, Rules, Re
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Question 14 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Are the provisions of job work applicable to all categories of goods? Ans. No. The provisions relating to job work are applicable only when registered taxable person intends to send taxable goods. In other words, these provisions are not applicable to exempted or non-taxable goods or when the sender is a person other than registered taxable person. – Statutory Provisions, Acts, Rules, R
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Who is responsible for the maintenance of proper accounts related to job work? – Question 13 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – 13. Who is resp
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Whether intermediate goods can also be sent for job work? – Question 12 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 12 – Q 12. Whether intermediate goods can
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Question 11 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 11 – Q 11. What would be treatment of the waste and scrap generated during the job work? Ans. The waste and scrap generated during the job work can be supplied by the job worker directly from his place of business, on payment of tax, if he is registered. If he is not registered, the same would be supplied by the principal on payment of tax. – Statutory Provisions, Acts, Rules, Regulations, Taxatio
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Question 10 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 10 – Q 10. Some capital goods like jigs and fixtures are non -usable after their use and normally so
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Question 9 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What happens when the inputs or capital goods are not received back or supplied from the place of business of job worker within prescribed time period? Ans. If the inputs or capital goods are not received back by the principal or are not supplied from the place of business of job worker within the prescribed time limit, it would be deemed that such inputs or capital goods had been supplied
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