Goods and Services Tax

Who is an e-commerce operator?
Question 2
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 o

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What is e-commerce?
Question 1
Bill
Electronic Commerce
FAQ on GST dated 21.9.2016 based on Draft Model GST
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, uni

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Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?
Question 26
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 i

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What is Tax Collected at Source (TCS)?
Question 25
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 supp

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How will the TDS Deductor account for such TDS?
Question 24
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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

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How will the Supplier account for this TDS while filing his return?
Question 23
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. How will the Supplier account for this TDS while filing his return?
Ans. Any amount shown as TDS will be reflected in the electronic cash ledger of the concerned supplier. He can utilize this amount towards discharging his liability towards tax, interest fees and any other amount.
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Statute, statutory provisions l

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What is TDS?
Question 22
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 into th

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What is an E-FPB?
Question 21
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. What is an E-FPB?
Ans. E-FPB stands for Electronic Focal Point Branch. These are branches of authorized banks which are authorized to collect payment of GST. Each authorized bank will nominate only one branch as its E-FPB for pan India Transactions. The E-FPB will have to open accounts under each major head for all governments. Total 38 accounts (one each for CGST, IG

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What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?
Question 20
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?
Ans. Section 35(8) prescribes an order of payment where the taxpayer has tax liability beyond the current return period. In such a situation, the order of payment to be followed is: Firs

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What is a CIN and what is its relevance?
Question 19
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. What is a CIN and what is its relevance?
Ans. CIN stands for Challan Identification Number. It is a 17 digit number that is 14-digit CPIN plus 3-digit Bank Code. CIN is generated by the authorized banks/ Reserve Bank of India (RBI) when payment is actually received by such authorized banks or RBI and credited in the relevant government account h

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What is a CPIN?
Question 18
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. What is a CPIN?
Ans. CPIN stands for Common Portal Identification Number

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Is there a validity period of challan?
Question 17
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. Is there a validity period of challan?
Ans. Yes,

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Can a challan generated online be modified?
Question 16
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. Can a challan generated online be modified?
Ans. No. After logging into GSTN portal for generation of challan, payment particulars have to be fed in by the tax payer or his authorized person. He can save the challan midway for future updation. However once the challan is finalized and CPIN generated, no further changes can be made to it by th

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Can a taxpayer generate challan in multiple sittings?
Question 15
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 15. Can a taxpayer generate challan in multiple sittings?
Ans. Yes, a taxpayer can partially fill in the challan form and temporarily “save” the challan for completion at a later stage. A saved challan can be “edited” before finalization. After the tax payer has finalized the challan, he will generate the challan, for use of payment of

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What is the linkage between GSTN and the authorized Banks?
Question 14
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 14. What is the linkage between GSTN and the authorized Banks?
Ans. There will be real time two way linkage between the GSTN and the Core Banking Solution (CBS) of the Bank. CPIN is automatically routed to the Bank via electronic string for verification and receiving payment and a challan identification number (CIN) is to automatic

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What is an ITC Ledger?
Question 13
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. What is an ITC Ledger?
Ans. Input Tax Credit as self-assessed in

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What is a Cash Ledger?
Question 12
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. What is a Cash Ledger?
Ans. The cash ledger will reflect all depo

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What is a tax liability register?
Question 11
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 11. What is a tax liability register?
Ans. Tax Liability R

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What are E-Ledgers?
Question 10
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. What are E-Ledgers?
Ans. Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered taxpayer. In addition, each taxpayer shall also have an electronic tax liability register. Once a taxpayer is registered on Common Portal (GSTN), 2 e-ledgers (Cash & Input Tax Credit) and an electronic tax liability register will be auto

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Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?
Question 9
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 9. Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?
Ans. It is the date of credit to the

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What happens if the taxable person files the return but does not make payment of tax?
Question 8
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. What happens if the taxable person files the return but does not make payment of tax?
Ans. In such cases, the return is not considered as a valid return. Section 27 (3) of the MGL provides that the return furnished by a taxable person shall not be treated as valid return unless the full tax due as per t

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Whether time limit for payment of tax can be extended or paid in monthly installments?
Question 7
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Whether time limit for payment of tax can be extended or paid in monthly installments?
Ans. No, this is not permitted in case of self-assessed liability. In other cases, competent authority has been empowered to extend the time period or allow payment in installments. (Section 55 of MGL).
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Statut

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When is payment of taxes to be made by the Supplier?
Question 6
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. When is payment of taxes to be made by the Supplier?
Ans. Payment of taxes by the normal taxpayer is to be done on monthly basis by the 20th of the succeeding month. Cash payments will be first deposited in the Cash Ledger and the taxpayer shall debit the ledger while making payment in the monthly returns and shall reflect the relevant

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How can payment be done?
Question 5
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 5. How can payment be done?
Ans. Payment can be done by the following methods:
(i) Through debit of Credit Ledger of the taxpayer maintained on the Common Portal- ONLY Tax can be paid. Interest, Penalty and Fees cannot be paid by debit in the credit ledger..
Tax payers shall be allowed to take credit of taxes paid on inputs (input tax credit) and utilize the same

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What are the main features of GST payment process?
Question 4
Bill
GST Payment of Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What are the main features of GST payment process?
Ans. The payment processes under proposed GST regime will have the following features:
* Electronically generated challan from GSTN Common Portal in all modes of payment and no use of manually prepared challan;
* Facilitation for the taxpayer by providing hassle free, anytime, anywhe

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