What is advantage of taking registration in GST?

Question 1 – Draft-Bills-Reports – Registration – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is advantage of taking registration in GST? Ans. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business: Legally recognized as supplier of goods or services. Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business. Le

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Does the model GST Law empower the competent government to exempt supplies from the levy of GST?

Question 22 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. Does the model GST Law empower the competent government to exempt supplies from the levy of GST? Ans. Yes. Under Section 10 of the Model GST Law, the Central or the State Government, on the recommendation of the GST council can exempt the supplies from the levy of GST either generally or subject to conditions. – Statutory Provisions, Acts, Rules, Regulat

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Whether remission is allowed for goods lost or destroyed before supply?

Question 20 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 20 – Q 20. Whether remission is allowed for goods lost or destroyed before supply? Ans. Remission of tax will apply only when tax is payable as per law i.e. taxable event should have happened and tax is required to be paid as per law. Under GST Law, levy is applicable upon supply of goods. Where goods are lost or destroyed before supply, taxable event does not occu

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What is remission of tax/duty?

What is remission of tax/duty? – Question 18 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 18 – Q 18. What is remission of tax

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When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax?

When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax? – Question 17 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 17 – Q 17. When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax? Ans. No, the taxable person providing such goods or services shall not collect the tax on such

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What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme?

Question 15 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 15 – Q 15. What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme? Ans. Taxable person who was not eligible for the composition scheme would be liable to pay tax, interest and in addition he shall also be liable to a penalty equivalent to the amount of tax payable. (Section 8 (3

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How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?

Question 14 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. How to compute aggregate turnover to determine eligibility for composition scheme? Ans. The methodology to compute aggregate turnover is given in Section 2(6). Accordingly, aggregate turnover means Value of all supplies (taxable and non-taxable supplies + Exempt supplies + Exports) and it excludesTaxes levied under CGST Act, SGST Act and IGST Act, Value

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Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit?

Question 11 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit? Ans. No, customer who buys goods from taxable person who is under composition scheme is not eligible for composition input tax credit because a composition scheme supplier cannot issue a tax invoice – Statutory Provisions, Acts,

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Can composition scheme be availed if the taxable person effects inter-State supplies?

Can composition scheme be availed if the taxable person effects inter-State supplies? – Question 9 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. Can composition scheme be availed if the taxable person effects inter-State supplies? Ans. No, composition scheme is applicable subject to the condition that the taxable person does not affect interstate supplies. – Statutory Provisions, Acts, Rules, Regulations, Taxation

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In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main supplier?

Question 5 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main supplier? Ans. No. In the above case the transaction of supply of watch from consumer to the restaurant will not be an independent supply as the same is not in the course of

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Where is the power to levy GST derived from?

Question 1 – Draft-Bills-Reports – Levy of and Exemption from Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. Where is the power to levy GST derived from? Ans. Article 246A of the Constitution, which was introduced by the Constitution (101st Amendment) Act, 2016 confers concurrent powers to both parliament and state legislatures to make laws with respect to GST. However, -clause 2 of Article 246A read with Article 269A provides exclusive power to the Parliament to

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What are the other legislative requirements for introduction of the GST?

Question 27 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 27 – Q 27. What are the other legislative requirements for introduction of the GST? Ans. Suitable legislation for the levy of GST (Central GST Bill, Integrated GST Bill and State GST Bills) drawing powers from the Constitution would need to be passed by the Parliament and the State Legislatures. Unlike the Constitutional Amendment which requires 2/3rd maj

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How are the disputes going to be resolved under the GST regime?

Question 26 – Draft-Bills-Reports – Overview of Goods and Services Tax (GST) – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. How are the disputes going to be resolved under the GST regime? Ans. The Constitution (one hundred and first amendment) Act, 2016 provides that the Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute (a) between the Government of India and one or more States; or (b) between the Government of India and any State

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