What is the threshold for opting to pay tax under the composition scheme?
Question 13
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 13. Wha
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Can composition tax be collected from customers?
Question 12
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 12. Can composition tax be colle
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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
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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
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Can the taxable person under composition scheme claim input tax credit?
Question 10
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 10. Can t
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Can composition scheme be availed if the taxable person effects inter-State supplies?
Question 9
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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.
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Statute, statutory provisions legislation, law, enactment, Acts, Rules,
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Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?
Question 8
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 8. Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?
Ans. No, composition scheme would become applicable for all the business verticals/registrations which are separately held by the person with same PAN
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Who can notify a transaction to be supply of goods and/or services?
Question 7
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 7. Who can notify a transaction to be supply of goods and/or services?
Ans. Central Government or State Government on the recommendation of the GST Council can notify a transaction to be the supply of goods and/or services.
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Whether supplies made without consideration will also come within the purview of Supply under GST?
Question 6
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 6. Whether supplies made without consideration will also come within the purview of Supply under GST?
Ans. Yes only those cases which are specified under Schedule I to the Model GST Law.
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Statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Tax
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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
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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
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What will be the implications in case of purchase of goods from unregistered dealers?
Question 4
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 4. What will be the implications in case of purchase of goods from unregistered dealers?
Ans. The receiver of goods will not be able to get ITC. Further, the recipients who are registered under composition schemes would be liable to pay tax under reverse charge.
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Is the reverse charge mechanism applicable only to services?
Question 3
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 3. Is the reverse cha
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What is the taxable event under GST?
Question 2
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 2. What is the taxable event under GST?
Ans. Supply of goods and/or services. CGST & SGST will be levied on intra-state supplies while IGST will be levied on inter-state supplies. The charging section is section 7 (1) of CGST/SGST Act and Section 4(1) of the IGST Act.
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Where is the power to levy GST derived from?
Question 1
Bill
Levy of and Exemption from Tax
FAQ on GST dated 21.9.2016 based on Draft Model GST
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 p
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What are the other legislative requirements for introduction of the GST?
Question 27
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
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
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How are the disputes going to be resolved under the GST regime?
Question 26
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
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)
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What is GSTN and its role in the GST regime?
Question 25
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 25. What is GSTN and its role in the GST regime?
Ans. GSTN stands for Goods and Service Tax Network (GSTN). A Special Purpose Vehicle called the GSTN has been set up to cater to the needs of GST. The GSTN shall provide a shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders for implementation of GST. The functions of the GSTN would, inter alia, include: (i) facilitating registration; (ii) forwarding the returns to Central and State authorities; (iii) computation and settlement of IGST; (iv) matching of tax payment de
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Whether the composition scheme will be optional or compulsory?
Question 24
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 24. Whe
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What is the scope of composition scheme under GST?
Question 23
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 23. What is the scope of composition scheme under GST?
Ans. Small taxpayers with an aggregate turnover in a financial year up to [Rs. 50 lakhs] shall be eligible for composition levy. Under the scheme, a taxpayer shall pay tax as a percentage of his turnover during the year without the benefit of ITC. The floor rate
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How will Exports be treated under GST?
Question 22
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 22. How will Exports be treated under GST?
Ans. Exports will be treated as zero rated supplies. No tax will be payable on exports of goods or services, however credit of input tax credit will be available and same will be available as refund to the exporters.
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Statute, statutory provisions legislation, law, enactment, Acts
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How will imports be taxed under GST?
Question 21
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 21. How will imports be taxed under GST?
Ans. Imports of Goods and Services will be treated as inter-state supplies and IGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goo
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How will the goods and services be classified under GST regime?
Question 20
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 20. How will the goods and services be classified under GST regime?
Ans. HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above ₹ 1.5 crores but below ₹ 5 crores shall use 2 digit code and the taxpayers whos
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What are the benefits available to small tax payers under the GST regime?
Question 19
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 19. What are the benefits available to small tax payers under the GST regime?
Ans. Tax payers with an aggregate turnover in a financial year up to [Rs.10 lakhs] would be exempt from tax. [Aggregate turnover shall include the aggregate value of all taxable and non-taxable supplies, exempt suppli
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Who is liable to pay GST under the proposed GST regime?
Question 18
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 18. Who is liable to pay GST under the proposed GST regime?
Ans. Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services. Liability to pay tax arises when the taxable person crosses the threshold exemption, i.e. ₹ 10 lakhs (Rs. 5 lakhs for NE States) except in cer
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How will decisions be taken by GST Council?
Question 17
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 17. How will decisions be taken by GST Council?
Ans. The Constitution (one hundred and first amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting. The vote of the Central Government shall
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What is the guiding principle of GST Council?
Question 16
Bill
Overview of Goods and Services Tax (GST)
FAQ on GST dated 21.9.2016 based on Draft Model GST
Q 16. What is the guiding principle of GST Council?
Ans. The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States. It has been provided in the Constitution (one hundred and first amendment) Act, 2016 that the GST Council, in its discharge o
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