Goods and Services Tax

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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Can GST paid on reverse charge be considered as input tax?
Question 3
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Can GST paid on reverse charge be considered as input tax?
Ans. Yes. The definition of input tax includes the tax payable under sub-section (3) of section 7 (Reverse Charge). The credit can be availed if such goods and/or services are used, or are intended to be used, in the course or furtherance of his business.
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What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Question 2
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?
Ans. It implies that input tax consists of IGST & CGST in CGST Act and IGST & SGST in SGST Act. In the IGST Act, input tax consists of all three taxes namely, IGST, CGST and

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What is input tax?
Question 1
Bill
Input Tax Credit
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 1. What is input tax?
Ans. “Input tax” has been defined in section 2 (57) of the MGL and section 2 (1) (d) of the IGST Act. Input tax in relation to a taxable person, means the {IGST and CGST} in respect of CGST Act and {IGST and SGST} in respect of SGST Act, charged on any supply of goods and/or services to him which are used, or are intended to be used, in the course or f

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Are the provisions of job-work applicable to all category of goods?
Question 9
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Are the provisions of job-work applicable to all category 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

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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 dated 21.9.2016 based on Draft Model GST
Q 8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job-worker?
Ans. In the MGL, aspects relating to taking input tax credit in respect of inputs/capital goods sent for job-work have been specifically dealt in Section 16A, which provides that the credi

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Under what circumstances can the principal directly supply goods from the premises of job-worker?
Question 7
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Under what circumstances can the principal directly supply goods from the premises of job-worker?
Ans. The goods can be supplied directly from the place of business of job-worker without declaring it as additional place of business in two circumstances namely where the job-worker is a registered taxab

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Can the principal supply the goods directly from the premises of the job-worker without bringing it back to his own premises?
Question 6
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 j

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Whether the goods of principal directly supplied from the job-worker’s premises will be included in the aggregate turnover of the jobworker?
Question 5
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. Whether the goods of principal directly supplied from the job-worker's premises will be included in the aggregate turnover of the jobworker?
Ans. No. It will be included in the aggregate turnover of the principal.
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Is a job-worker required to take registration?
Question 4
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. Is a job-worker required to take registration?
Ans. Y

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Can a registered taxable person send goods without payment of tax to his job-worker?
Question 3
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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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
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 S

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What is job-work?
Question 1
Bill
Job Work
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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What will happen if the details remain mismatched?
Question 14
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 th

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What is the concept of matching in e-commerce provisions and how it is going to work?
Question 13
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 suppl

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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
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 amount

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Is the e-commerce operator required to furnish information to the Government?
Question 11
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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;

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How can actual suppliers claim credit of this TCS?
Question 10
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 dis

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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
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 a

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At what time/intervals should the e-commerce operator make such deductions?
Question 8
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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What is Tax Collection at Source (TCS)?
Question 7
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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/collecte

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Is an aggregator required to be registered under GST?
Question 6
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Is an aggregator required to be registered under GST?
Ans. Yes. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to aggregators and they would be liable to be registered irrespective of the value of supply made by them.
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Who is an aggregator?
Question 5
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 c

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Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption?
Question 4
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 re

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Is it mandatory for e-commerce operator to obtain registration?
Question 3
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Is it mandatory for e-commerce operator to obtain registration?
Ans. Yes. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.
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