Goods and Services Tax

Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes?
Question 15
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 mach

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?
Question 14
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 14. Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?
Ans. No, a person cannot take ITC with respect to goods lost, stolen, destroyed or written off. In addition, ITC with respect of goods given as gifts or free samples are al

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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?
Question 13
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 vehic

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is credit of tax paid on every input used for supply of taxable goods or services or both is allowed under GST?
Question 12
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 r

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Question 11
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?
Ans. The

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is the time limit for taking ITC and reasons therefor?
Question 10
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to ’scenarios)?
Question 9
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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?
Question 8
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 perso

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Can a person take input tax credit without payment of consideration for the supply along with tax to the supplier?
Question 7
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Where the goods against an invoice are received in lots or instalments, how will a registered person be entitled to ITC?
Question 6
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. Where the goods against an invoice are received in lots or instalments, how will a registered person be entitled to ITC?
Ans. The registered person shall be entitled to the credit only upon receipt of the last lot or installment.
–
Statute, statutory provisions legislation

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What are the conditions necessary for obtaining ITC?
Question 5
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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 actu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is credit of all input tax charged on supply of goods or services allowed under GST?
Question 4
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
Question 3
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. Does input tax includes tax (CGST/IGST/SGST) paid on input goods, input services and capital goods?
Ans. Yes, it includes taxes paid on input goods, input services and capital goods. Credit of tax paid on capital goods is permitted to be availed in one instalment.
–
Statute, statutory provision

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Can GST paid on reverse charge basis be considered as input tax?
Question 2
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. Can GST paid on reverse charge basis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What is input tax?
Question 1
Bill
Input Tax Credit
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Should job worker and principal be located in same State or Union territory?
Question 16
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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 Uni

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Is it compulsory that job work provisions should be followed by the principal?
Question 15
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Are the provisions of job work applicable to all categories of goods?
Question 14
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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 tax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Who is responsible for the maintenance of proper accounts related to job work?
Question 13
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
13. Who is responsible for the mainte

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Whether intermediate goods can also be sent for job work?
Question 12
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
Q 12. Whether intermediate goods can also be sent for job

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What would be treatment of the waste and scrap generated during the job work?
Question 11
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Some capital goods like jigs and fixtures are non -usable after their use and normally sold as scrap. What is the treatment of such items in job work provisions?
Question 10
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. Some capital goods like jigs and fixtures are non -usable after their use and normally sold as scrap. What is the treatment of such items in job work provisions?
Ans. The condition of bringing back capital goods within three years is not applicab

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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?
Question 9
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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 pl

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker?
Question 8
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

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
Bill
Job Work
Faq On GST (2nd Edition) Dated 31.3.2017
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 pla

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =