What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker?

Question 8 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker? Ans. Principal shall be entitled to take credit of taxes paid on inputs or capital goods sent to a job worker whether sent after receiving them at his place of business or even when such the inputs or capital goods are directly sent to a job worker without their being first brought to

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Under what circumstances can the principal directly supply goods from the premises of job worker without declaring the premises of job worker as his additional place of business?

Question 7 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. Under what circumstances can the principal directly supply goods from the premises of job worker without declaring the premises of job worker as his additional place of business? Ans. The goods can be supplied directly from the place of business of job worker without declaring it as additional place of business in two circumstances namely where the job worker is a registered taxable person

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Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises?

Question 6 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 6 – Q 6. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises? Ans. Yes. But the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker. The Commissioner may al

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Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises?

Question 5 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? Ans. Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which

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Whether the goods of principal directly supplied from the job worker’s premises will be included in the aggregate turnover of the job worker?

Question 4 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Whether the goods of principal directly supplied from the job worker s premises will be included in the aggregate turnover of the job worker? Ans. No. It will be included in the aggregate turnover of the principal. However, the value of goods or services used by the job worker for carrying out the job work will be included in the value of services supplied by the job worker. – Statutory Pr

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Whether goods sent by a taxable person to a job worker will be treated as supply and liable to GST? Why?

Question 2 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Whether goods sent by a taxable person to a job worker will be treated as supply and liable to GST? Why? Ans. It will be treated as a supply as supply includes all forms of supply such as sale, transfer, etc. However, the registered taxable person (the principal), under intimation and subject to such conditions as may be prescribed send any inputs and/or capital goods, without payment of t

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What is job work?

Question 1 – Draft-Bills-Reports – Job Work – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 9. Job Work Q 1. Q 1. What is job work? Ans. Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called job worker and the person to whom the goods belongs is called principal . This definition is much wider than the one given in Notification No. 2

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What will happen if the details remain mismatched?

Question 16 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 16 – Q 16. What will happen if the details remain mismatched? Ans. The value of a supply relating to any payment in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return for the month in which discrepancy is communicated shall be added to the output liability of the said supplier, for the calendar month succeeding the calendar mo

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What is the concept of matching in e-commerce provisions and how it is going to work?

Question 15 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 15 – Q 15. What is the concept of matching in e-commerce provisions and how it is going to work? Ans. The details of supplies and the amount collected during a calendar month, and furnished by every operator in his statement will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same calendar month or any preced

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Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement?

Question 14 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 14 – Q 14. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Ans. Yes, every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services returned through it, and the amount co

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How can actual suppliers claim credit of this TCS?

Question 13 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 13 – Q 13. How can actual suppliers claim credit of this TCS? Ans. The amount of TCS deposited by the operator with the appropriate government will be reflected in the cash ledger of the actual registered supplier (on whose account such collection has been made) on the basis of the statement filed by the operator. The same can be used at the time of discharge of tax liability in respect

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What is meant by “net value of taxable supplies”?

Question 9 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 9 – Q 9. What is meant by net value of taxable supplies ? Ans. The net value of taxable supplies means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator, made during any month by all registered persons through such operator reduced by the aggregate value of taxable supplies returned to t

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It is very common that customers of ecommerce companies return goods. How these returns are going to be adjusted?

Question 8 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 8 – Q 8. It is very common that customers of ecommerce companies return goods. How these returns are going to be adjusted? Ans. An e-commerce company is required to collect tax only on the net value of taxable supplies. In other words, value of the supplies which are returned are adjusted in the aggregate value of taxable supplies. – Statutory Provisions, Acts, Rules, Regulations, Taxati

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What is Tax Collection at Source (TCS)?

Question 7 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 7 – Q 7. What is Tax Collection at Source (TCS)? Ans. The e-commerce operator is required to collect an amount calculated at the rate not exceeding one percent of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS). – Statutory Prov

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Will an e-commerce operator be liable to pay tax in respect of supply of goods or services made through it, instead of actual supplier?

Question 5 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 5 – Q 5. Will an e-commerce operator be liable to pay tax in respect of supply of goods or services made through it, instead of actual supplier? Ans. Yes, but only in case of certain notified services. In such cases tax shall be paid by the electronic commerce operator if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce opera

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

Question 4 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 4 – Q 4. Whether a supplier of goods or services supplying through e-commerce operator would be entitled to threshold exemption? Ans. No. 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. This requirement, however, is applicable only if the supply is made through such electronic commerce

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Who is an e-commerce operator?

Who is an e-commerce operator? – Question 2 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 2 – Q 2. Who is an e-commerce operator? Ans. Electronic Co

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What is Electronic Commerce?

What is Electronic Commerce? – Question 1 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST (2nd Edition) dated 31.3.2017 – Question 1 – 8. Electronic Commerce Q 1. What is Electronic Commerce?

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