Goods and Services Tax

What is the time limit for taking ITC?
Question 28
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 28. What is the time limit for taking ITC?
Ans. As per Section 16 (15) of the MGL, ITC cannot be taken beyond the month of September of the following FY to which invoice pertains or date of filing of annual return, whichever is earlier.
The underlying reasoning for this restriction is that no change in return is permitted after September of next FY. If

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Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to’ scenarios)?
Question 27
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 27. Who will get the ITC where goods have been delivered to a person other than taxable person ('bill to'- 'ship to' scenarios)?
Ans. As per explanation clause to section 16(11) of the MGL, for this purpose of receiving the goods, it would be deemed that the ta

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Where the goods against an invoice are received in lots or instalments, how will a registered taxable person be entitled to ITC?
Question 26
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 26. Where the goods against an invoice are received in lots or instalments, how will a registered taxable person be entitled to ITC?
Ans. As per proviso to section 16(11) of the MGL, the registered taxable person shall be entitled to the credit upon receipt of the

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What are the conditions necessary for obtaining ITC?
Question 25
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 25. What are the conditions necessary for obtaining ITC?
Ans. As per Section 16(11) of the MGL, following four conditions are stipulated:
(a) The registered taxable person should be in possession of tax paying document issued by a supplier;
(b) The taxable person must have received the goods and / or services;
(c) The tax charged on suc

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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 24
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 24. 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?

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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 23
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. 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 mo

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What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?
Question 22
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. What is the liability of the principal if the capital goods sent to job worker have not been received within 2 years from the date of being sent?
Ans. Principal has to pay an amount equal to credit taken on such capital goods along with interes

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What is the time period within which the capital goods sent for job work has to be received back by the principal?
Question 21
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on D

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Which of the following is included for computation of taxable supplies for the purpose of availing credit: (a) Zero-rated supplies; (b) Exempt supplies; (c) Both?
Question 20
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. Which of the following is included for computation of taxable supplies for the purpose of availing credit:
(a) Zero-rated supplies;
(b) Exempt supplies;
(c) Both?
Ans. Zero rated supplies.
–
Statute, statutory provi

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Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Question 19
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?
Ans. Yes, the principal has to reverse the credit along with interest on inputs which have not been received back from j

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What is the time period within which the inputs sent for job work has to be received back by the principal?
Question 18
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Mo

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Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Question 17
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?
Ans. Yes, the principal is eligible to avail the input tax credit on inputs sent to job worker for job work in terms of Section 16A(2) of the MGL.
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Statute, statutory provisions

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When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?
Question 16
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?
Ans. As pe

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Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..
Question 15
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..
A

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Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is he eligible for ITC?
Question 14
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is

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A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Question 13
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. A dealer paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?
Ans. As per section 16(3) of the MGL, he can avail ITC in respect of inputs he

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What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?
Question 12
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?
Ans. As per section 16(12) of the MGL, the registered taxable person, who was paying tax

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What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
Question 11
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?
Ans. As per section 16(12) of the MGL, the registered taxable person who supplies goods and / or services

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What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?
Question 10
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?
Ans. As per section 16(8) of the MGL, the transferor shall be allowed to transfer the input tax credit that remains unutilized in its books of accou

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Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?
Question 9
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Where goods and/or services received by a taxable person are used for the purpose of business and non-business supplies, whether the input tax credit is available to the registered taxable person?

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Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
Question 8
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Where goods and/or services received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?
An

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What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Question 7
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?
Ans. As per section 16(2A) of MGL, the person who obtains voluntary registration is entitled to take the input tax credit of input tax on inputs in stock, inputs in sem

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A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….
Question 6
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. A person becomes liable to pay tax on 1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….
An

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What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration? (Section 16(2))
Question 5
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. What is the ITC entitlement of a person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has bee

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Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Question 4
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or capital goods?
Ans. Yes, in terms of section 2(54), 2(55) & 2(20) of the MGL respectively. It may be noted that credit of tax paid on capital goods also is permitted to be availed in one instalmen

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