Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs
GST
Dated:- 30-8-2017
Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs
\n=============
\nDocument 1
\nFREQUENTLY
\nASKED
\nQUESTIONS
\nGOODS AND SERVICES TAX
\nNATION
\nTAX
\nMARKET
\nQueries relating to GST received from various sectors
\nhave been scrutinised and developed into short FAQS.
\nThe fourth part, containing 50 questions and their answers, is given below.
\nCOMPOSITION
\nPART-4
\nQ.1 Whether a person can avail the composition scheme on Small Retail Trading of goods if he is holding both incomes like Sale
\nof business: Rs. 25 lakh (Small Retail Trader) and Rental income: Rs. 12 lakh, whereas the person was registered earlier in
\nVAT Composition Scheme and was paying Service Tax on rental income?
\nAns Renting is a service and supplier of service, except restaurant service, cannot opt for composition scheme. Sinc<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h Bond LUT even if the same was issued on or before = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n supplier. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n merchant-exporter even though the goods are being sealed in container for export from the premises of manufacturer = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n in providing GTA services which are under RCM and are treated as exempted supplies = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nBoard has not notified so far, therefore, this office is of the view that Bond is to be fumished in all cases as of now. Please clarify = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n east 10% of his\/her export = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n a simpler return called GSTR-38 has also been devised due to the demands Q.42 Would tax be payable on sale of business assets on which no credit was claimed? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n employer to employee would be liable to GST? For instance, whether club membership = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n GST except where benefit of Pure agent as provided in Rule 33 of CGST Rules, 2017 is = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs GSTDated:- 30-8-2017Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs ============= Document 1 FREQUENTLY ASKED QUESTIONS GOODS AND SERVICES TAX NATION TAX MARKET Queries relating to GST received from various sectors have … Continue reading “Queries relating to GST received from various sectors have been scrutinised and developed into short FAQs”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7518","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7518","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7518"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7518\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7518"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7518"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7518"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n30.06.2017 and is still live Le. not one year old.
\nAns Circular No. 4\/4\/2017-GST dated 07.07.2017 clarifies this. Old LUT\/bond is valid till 31.07.2017, after which fresh
\nLUT\/Bond in the new format is required to be submitted
\nQ.4 Some assessees had multiple central excise registrations under the earlier regime and were having different LUT\/Bond for
\neach premises. In GST, there will be single registration for such assesses. Do they require furnishing fresh Bond\/LUT for
\ntheir principal place of business or the existing Bond\/LUT issued to them prior to 30.06.2017 shall be applicable for the
\nexport purpose.
\nQ.27
\nAns
\nIn case of unregistered dealer, recipient will pay tax on reverse charge basis. He can get the ITC provided he fulfills other
\nconditions as mentioned in section 16 of the CGST Act, 2017. In case of purchase from composition taxable person, the
\ncomposition person cannot charge any tax and hence the question of avail<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nAns
\n2.29
\nHow should importers take credit of clean energy cess paid on goods lying as stock 30.06.20177
\nNo credit for
\nclean energy cess can be taken
\nAns
\nQ.5 With reference to clause 5 of Rule 96 Aof CGST Rules, 2017 as inserted vides Nf No. 15\/2017-Central Tax dated 01st July
\nmay be fumished in place of a bond.” It may be clarified as to whether any conditions and safeguard has been notified by the
\nBoard as on date, as certain parties have filed LUT for export in this office
\nAns Yes, conditions and safeguards have been specified by Notification No. 16\/2017-Central Tax dated 07.07.2017 and clarified
\nin detail in Circular No. 4\/4\/2017-GST dated 07.07.2017. The sum and substance of these documents is that the facility of
\nLetter of Undertaking in place of a bond is available to a registered person who is either (a) a status holder as specified in the
\nForeign Trade Policy 2015-2020, or (b) who has received the due foreign inward remittances amounting to a minimum of\n<\/p>\n
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\nexporter? Does the merchant-exporter have the option either to avail option of Bond\/LUT or to pay IGST for export of such
\ngoods?
\nAns Yes. The manufacturer would be liable to pay CGST and SGST. The merchant-exporter has the option either to avail option
\nof Bond\/LUT or to pay IGST for export of such goods. There is no provision on the lines of Form H under the CST Act in the
\nQ.30
\nAns
\nQ.31
\nAns
\nSince our products are under 0% and we are using various services like telephone, professional charges for which we will
\nbe paying GST to our registered service providers and this amount will not be utilized towards any payment of outward
\ngoods. Are we eligible for refund on the services obtained and GSTN paid for the same? If yes what is the procedure? If no
\nwhat is the accounting effect?
\nYou are not eligible for refund of unutilized Input Tax Credit as there is no tax on <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nin the hand of GTA. However, if GTA is also liable to pay tax under forward charge as supplier, he is not permitted to avail ITC
\nIf he is claiming the concessional rate of 5%. If ITC is claimed, the GST rate for GTAin forward charge will be 18%.
\nWhat will be the Input Credit of newly launched project of building construction after 01.07.20177
\nITC is permitted to pay output tax of construction\/work contract services. Please see Section 17(5)(c) and (d) of CGST Act,
\nAs per Rule 96A of CGST Rules, 2017, the LUT is to be accepted by the Jurisdictional Commissioner. Udaipur whereas in Q.34 What are the provisions under CGST Act as to the eligiblity of CENVAT credit of service tax on invoices which are received
\nTera the same was accepted by the jurisdictional Deputy Assistant Commissioner Kota. The Commissioner of Kota
\nCommissioner as compared to previous procedure.
\nhas
\nafter the appointed date for th<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe Board has, vide Notification 16\/2017-Central Tax dated 07.072017, specified the conditions and safeguards under
\nwhich an exporter may file a LUT instead of a bond.
\nQ.11 Whether in case of assesses exporting goods under LUT in Central Excise Act 1944, can export goods after 01.07.2017
\nunder GST on the basis of the said LUT filed under Central Excise Act, 1944 until that LUT expires.
\nAns In terms o
\n7 exports are allowed under existing LUTs\/Bonds till 31st July
\n2017.
\nQ.12 There is lack of clarity in the trade regarding the eligibility conditions for the LUT\/Bond as per the Notification No. 16\/2017.
\nCentral Tax. Parai (b) of the said notification requires the exporter to receive the due foreign inward remittances amounting
\nGSTR-1 (Point 9)-As banks are eligible to claim only 50% of Input credit consider excluding banks from reporting of
\nex<\/p>\n
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\nturnover as foreign inward remittance in the preceding financial year and the foreign inward remittance in the preceding
\nfinancial year should not be less than one crore rupees. E.g. if a registered person has an export turnover in FY 2016-17 of
\nRs. 5 crore and has received foreign inward remittance of Rs. 5 crore in the same FY, then he shall satisfy Condition (b), and
\nshall be eligible for execution of LUT.
\nINVOICE & RETURNS
\nQ.39 Whether the job worker (who converts barley into Malt) has to charge GST from the Principal only on the Job Work charges
\nor full value of goods, ie (Value of Raw Material Job Work Charges)?
\nAns
\nThe job worker has to pay GST on job work charges only.
\nQ.40 In case of job workers not operating under Notification 214\/86-CE (.e. registered under excise at present), whether they can
\ncarry forward the credit availed on RM\/PM supplied to them by the principal manufacturer? Also is there any restriction on
\ncarry forward of the c<\/p>\n
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\nfrom the trade and industry for extension of time limit for filing of normal returns.
\nQ.15 Would head offices providing centralized HR, Finance and IT functions also need to raise invoices to its branches?
\nAns Yes, if the head office and branches are distinct persons as specified in Section 25(4) of CGST Act, 2017 invoice is required
\nto be issued and GST should also be paid.
\nQ.16 Kindly clarify the accounting treatment of Credit Note while raising Invoice after implementation of GST?
\nAns For the purpose of GST law, credit note can be issued to reduce the taxable value or to reduce tax payable or to claim goods
\nreturn, where the relevant invoice had already been issued and taxable value or tax charged in that tax invoice is in excess.
\nSection 34 of CGST Act, 2017 may be referred to for further details.
\nQ.17 Whether any tr<\/p>\n
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\nprovided will be considered as “service”?
\nAns. The compensation to employees in the form of money is not a supply. However, fringe benefits are supply of goods or
\nservices and are liable to tax if not exempted. These are transactions in furtherance of business and even if supplied without
\nconsideration, the same are deemed supply.
\nQ.44 An USA based company provides services to its account holders spread worldwide. Whether services given by it would be
\ncovered under Section 13(8) of IGST Act?
\nAns If the place of supply is in India, the registered recipient will have to pay tax under reverse charge and if the recipient is
\nunregistered, company will pay GST in accordance with section 14 of IGST Act
\nQ.45 Whether 5% GST applicable to the Transport service provider is to be charged on the total freight amount bil?
\nAns It will be on the invoice value of GTA services determined in terms of Section 15\n<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\navailed.
\nAns
\nInvoice value would include value of all goods including those supplied free. In such cases, ITC is not required to be
\nreversed
\nQ.21 Under GST, how to send demonstration equipment and instruments to customers or branch offices with in India on
\nreturnable basis?-No sale is involved
\nAns As the goods are sent on returnable basis and no transfer of title is involved, it is not a supply of goods. If some element of
\nservice is involved, the same will be a taxable supply. The goods may be sent on delivery challan without invoice as it is not a
\nsupply of goods
\nQ.22 How to send equipment and instruments to manufacturers' factory for repairs and calibration with in India on returnable
\nbasis?-No sale is involved.
\nQ.48
\nAns
\nProvisions of Notification no. 7\/2017 Central Tax are applicable under CGST only. Kindly clarify whether provisions of
\nnotification no. 7\/2017 will be applicable for <\/p>\n
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