Goods and Services Tax

A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Question 11
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 11. A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?
Ans. Yes. As per Sl. No.1 of Schedule-I, per

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An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer.
Question 10
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 10. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer.
Ans. No, because supply is not made by t

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What do you mean by “supply made in the course or furtherance of business”?
Question 9
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 9. What do you mean by “supply made in the course or furtherance of business”?
Ans. “Business” is defined under Section 2(17) include any trade, commerce, manufacture, profession, vocation etc. whether or not undertaken for a pecuniary benefit. Business also includes any activity or transaction which is incident

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Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Question 8
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 8. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?
Ans. Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be tr

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Are self-supplies taxable under GST?
Question 7
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 7. Are self-supplies taxable under GST?
Ans. Inter-state self-supplies such as stock transfers, branch transfers or consignment sales shall be taxable under IGST even though such transactions may not involve payment of consideration. Every supplier is liable to register under the GST law in the State or Union territory from where he makes a taxable suppl

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Import of Goods is conspicuous by its absence in Section 3. Why?
Question 6
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 6. Import of Goods is conspicuous by its absence in Section 3. Why?
Ans. Import of goods is dealt separately under the Customs Act, 1962, wherein IGST shall be levied as additional duty of customs in addition to basic customs duty under the Customs Tariff Act, 1975.
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Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Question 5
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?
Ans. Yes. Under certain circumstances such as import of services for a consideration whether or not in the course or furtherance of business (

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What are the necessary elements that constitute supply under CGST/SGST Act?
Question 4
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 4. What are the necessary elements that constitute supply under CGST/SGST Act?
Ans. In order to constitute a 'supply', the following elements are required to be satisfied, i.e.-
(i) the activity involve s supply of goods or services or both;
(ii) the supply is for a consideration unless otherwise specifically pr

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What is a taxable supply?
Question 3
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 3. What is a taxable supply?
Ans. A 'taxable supply' means a supply

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What is the scope of ‘supply’ under the GST law?
Question 2
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
Q 2. What is the scope of 'supply' under the GST law?
Ans. The term 'supply' is wide in its import covers all forms of supply of goods or services or both that includes sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. It a

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What is the taxable event under GST?
Question 1
Bill
Meaning and Scope of Supply
Faq On GST (2nd Edition) Dated 31.3.2017
4. Meaning and Scope of Supply
Q 1. What is the taxable event under GST?
Ans. The taxable event under GST shall be the supply of goods or services or both made for consideration in the course or furtherance of business. The taxable events under the existing indirect tax laws such as manufacture, sale, or provision of services shall stand subsumed in the

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What is the difference between casual and nonresident taxable persons?
Question 46
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 46. What is the difference between casual and nonresident taxable persons?
Ans. Casual and Non-resident taxable persons are separately defined in the CGST/SGST Act in Sections 2(20) and 2(77) respectively. Some of the differences are outlined below:
Casual Taxable Person
Non-resident Taxable Person
Occasional undertakes transactions

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Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?
Question 45
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 45. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?
Ans. Yes, as per Section 29(5) of the CGST/SGST Act, every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the electronic cash ledge

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Can cancellation of registration order be revoked?
Question 44
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 44. Can cancellation of registration order be revoked?
Ans. Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of the taxable person or his legal heirs. A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation of registrati

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Can the registration certificate be downloaded from the GSTN portal?
Question 43
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 43. Can the registration certificate be d

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Will there be any communication related to the application disposal?
Question 42
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 42. Will there be any communication related to the application disposal?
Ans. The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage.
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Statute, statutory provisions

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What is the process of refusal of registration?
Question 41
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 41. What is the process of refusal of registration?
Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (2) of section 26 of the CGST Act, any rejection of application for registr

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What will be the time of response by the applicant if any query is raised in the online application?
Question 40
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 40. What will be the time of response by the applicant if any query is raised in the online application?
Ans. If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant and to the other tax authority through the

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What will be the time limit for the decision on the on line registration application?
Question 39
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 39. What will be the time limit for the decision on the on line registration application?
Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within three common working days. If they communicate any deficiency or discrepanc

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Is there any facility for digital signature in the GSTN registration?
Question 38
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 38. Is there any facility for digital signature in the GSTN registration?
Ans. Tax payers would have the option to sign the submitted application using valid digital signatures. There will be two options for electronically signing the application or other submissions- by e-signing through Aadhar number, or through DSC i.e. by registerin

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Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?
Question 37
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 37. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?
Ans. In order to cater to the needs of tax payers who are not IT savvy, following facilities shall be made available: –
Tax Return Preparer(TRP): A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will prepare the said registration document / return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of information con

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At the time of registration will the assessee have to declare all his places of business?
Question 36
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 36. At the time of registration will the assessee have to declare all his places of business?
Ans. Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as

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Whether the goods will be permitted to be supplied from the place of business of a job worker?
Question 35
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 35. Whether the goods will be permitted to be supplied from the place of business of a job worker?
Ans. Yes. But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker as his additional place of business.
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Statute, statutory provisions l

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Whether the job worker will have to be compulsorily registered?
Question 34
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 34. Whether the job worker will have to be com

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Whether all assesses / dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration?
Question 33
Bill
Registration
Faq On GST (2nd Edition) Dated 31.3.2017
Q 33. Whether all assesses / dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration?
Ans. No, GSTN shall migrate all such assessees/dealers to the GSTN network and shall issue a provisional

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