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 dated 21.9.2016 based on Draft Model GST – 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 with a rider that the principal should have declared the premises of such job-worker as his additional place of business or where the job-worker is a registered person or where the goods have been notified. – Statutory Provisions, Acts, Rules

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Can a registered taxable person send goods without payment of tax to his job-worker?

Question 3 – Draft-Bills-Reports – Job Work – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 3 – Q 3. Can a registered taxable person send goods without payment of tax to his job-worker? Ans. Yes. Section 43A of the MGL provides that the registered taxable person (principal) can send the taxable goods to a job-worker for job-work without payment of tax. He can further send the goods from one job-worker to another job-worker and so on subject to certain condition. It may be noted

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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 dated 21.9.2016 based on Draft Model GST – 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. No. It will not be treated as a supply. In terms of proviso to Para 5 of Schedule I of the MGL the supply of goods by a registered taxable person (principal) to jobworker, in terms of Section 43A, shall not be regarded as supply of goods. Therefore, it can be inferred th

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What is job-work?

Question 1 – Draft-Bills-Reports – Job Work – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is job-work? Ans. Section 2(62) of the MGL provides that job-work means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression job-worker shall be construed accordingly. This definition is much wider than the one given in Notification No. 214/86 – CE dated 23rd March, 1986 as amended, wherein job-work has

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What will happen if the details remain mismatched?

Question 14 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 14 – Q 14. What will happen if the details remain mismatched? Ans. As per section 43C (8), 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 calend

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

Question 13 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 13 – Q 13. What is the concept of matching in e-commerce provisions and how it is going to work? Ans. As per section 43C (6), 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 filed

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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 12 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 12 – Q 12. 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, in terms of Section 43C (4), every operator is required to furnish a statement, electronically, of all amounts collected as TCS towards outward supplies of goods and/or services effected through it, during a calendar month

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Is the e-commerce operator required to furnish information to the Government?

Question 11 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 11 – Q 11. Is the e-commerce operator required to furnish information to the Government? Ans. Yes. In terms of section 43C(10), an officer not below the rank of Joint Commissioner may require the operator to furnish details relating to: (i) supplies of goods / services effected through the operator during any period; (ii) stock of goods held by actual supplier making supplies

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How can actual suppliers claim credit of this TCS?

Question 10 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 10 – Q 10. How can actual suppliers claim credit of this TCS? Ans. Such TCS which is deposited by the operator into government account 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 resp

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What is the time within which such TCS is to be remitted by the e-commerce operator to Government account? Is the operator required to file any returns for this purpose?

Question 9 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 9 – Q 9. What is the time within which such TCS is to be remitted by the e-commerce operator to Government account? Is the operator required to file any returns for this purpose? Ans. In terms of Section 43C(3) of the MGL, the amount collected by the operator is to be paid to the credit of appropriate government within 10 days after the end of the month in which amount was so

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At what time/intervals should the e-commerce operator make such deductions?

Question 8 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 8 – Q 8. At what time/intervals should the e-commerce operator make such deductions? Ans. The timings for such collection/deduction are earlier of the two events: (i) the time of credit of any amount to the account of the actual supplier of goods and / or services; (ii) the time of payment of any amount in cash or by any other mode to such supplier. – Statutory Provisions, Act

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What is Tax Collection at Source (TCS)?

Question 7 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 7 – Q 7. What is Tax Collection at Source (TCS)? Ans. In terms of Section 43C(1) of the MGL, the e-commerce operator is required to collect (i.e. deduct) an amount out of the consideration paid or payable to the actual supplier of goods or services in respect of supplies of goods and / or services made through such operator. The amount so deducted/collected is called as Tax Co

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Who is an aggregator?

Question 5 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 5 – Q 5. Who is an aggregator? Ans. Section 43B(a) of the MGL defines aggregator to mean a person, who owns and manages an electronic platform, and by means of the application and communication device, enables a potential customer to connect with the persons providing service of a particular kind under the brand name or trade name of the said aggregator. For instance, Ola cabs

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

Question 4 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 4 – Q 4. Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption? Ans. No. Section 19 r/w Schedule-III of the MGL, provides that 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. – Statutory Provisions, Acts, Rules, Re

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Who is an e-commerce operator?

Question 2 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 2 – Q 2. Who is an e-commerce operator? Ans. Section 43B(e) of the MGL defines an Electronic Commerce Operator (Operator) as every person who, directly or indirectly, owns, operates or manages an electronic platform which is engaged in facilitating the supply of any goods and/or services. Also a person providing any information or any other services incidental to or in connect

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What is e-commerce?

Question 1 – Draft-Bills-Reports – Electronic Commerce – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 1 – Q 1. What is e-commerce? Ans. Section 43B(d) of the MGL defines an Electronic Commerce to mean the supply or receipt of goods and/ or services, or transmitting of funds or data, over an electronic network, primarily the internet, by using any of the applications that rely on the internet, like but not limited to e-mail, instant messaging, shopping carts, web services, univ

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Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?

Question 26 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 26 – Q 26. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment? Ans. Yes. The taxpayer would be required to pre-register his credit card, from which the tax payment is intended, with the Common Portal maintained on GSTN. GSTN may also attempt to put in a system with banks in getting the credit card verified by taking a confirmation from the

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What is Tax Collected at Source (TCS)?

Question 25 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 25 – Q 25. What is Tax Collected at Source (TCS)? Ans. This provision is applicable only for E-Commerce Operator under section 43C of MGL. Every E-Commerce Operator needs to withhold a percentage (to be notified later on the recommendation of the GST Council) of the amount which is due from him to the supplier at the time of making actual payment to the supplier. Such withheld

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How will the TDS Deductor account for such TDS?

Question 24 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 24 – Q 24. How will the TDS Deductor account for such TDS? Ans. TDS Deductor will account for such TDS in the following ways: 1. Such deductors needs to get compulsorily registered under section 19 read with Schedule III of MGL. 2. They need to remit such TDS collected by the 10th day of the month succeeding the month in which TDS was collected and reported in GSTR 7. 3. The a

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What is TDS?

Question 22 – Draft-Bills-Reports – GST Payment of Tax – FAQ on GST dated 21.9.2016 based on Draft Model GST – Question 22 – Q 22. What is TDS? Ans. TDS stands for Tax Deducted at Source (TDS). As per section 37, this provision is meant for Government and Government undertakings and other notified entities making contractual payments in excess of ₹ 10 Lakhs to suppliers. While making such payment, the concerned Government/authority shall deduct 1% of the total payable amount and remit it

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