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
\n**
\nFREQUENTLY
\nASKED QUESTIONS
\nGOODS AND SERVICES TAX
\nQueries relating to GST received from various Sectors have been
\nscrutinised and developed into short FAQS.
\nThe Fifth part, containig 50 questions and their answers, is given below.
\nLevy
\nPart-5
\nQ1. What is the taxable treatment of the services provided by a Service Provider in respect of such services which are
\ncovered under notification 25\/2012-Mega Exemption Notification for Government, railways and other
\nDepartments? Such Services are exempt from Service Tax, hence who will bear the GST tax element of 18%, the
\nService Provider or the Principal Employer?
\nAns. Exemption notification for services have been notified. Refer Not. No. 12\/2017-Central <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n two months, then how = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ourney to a = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n miscellaneous = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n d get registered and also pay GST on taxable supply. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n issued in accordance with the provisions of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n same? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n delivery challan. Document as may be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n nth prior to appointed date? = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \nAns. GST is payable on services supplied after 01.07.2017. = = = = = = = =<\/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 Queries relating to GST received from various Sectors have been scrutinised … 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-7519","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7519","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=7519"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7519\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\nthe Point of Service
\nrvice
\nwill be determined?
\nAns. Time of supply of services has been explained in Section 13 of CGST Act. The date of issue of Invoice will the time of supply.
\nQ4. Is
\npractically feasible that Service Provider submits an Invoice after execution of work and the Principal
\nEmployer makes arrangement for payment of the bill after three months whereas as per point of service rule, the
\nPoint of Service stands for one month from the date of issue of raise invoice or services whichever is earlier and
\nthe Service Provider has to pay Service Tax @ 18% on value of work done although he has not received any
\npayment from the client till date?
\nAns. Time of supply of services has been explained in Section 13 of CGST Act. The terms for payment do not decide the taxability of a
\nparticular transaction. So even if payment for a particular supply has not been received it will still be liable for GST.
\nQ5. Intermediary services and services provided by Ba<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ne in Pakistan, it is taxable because the place of embarkation is in the taxable territory.
\nplace in
\nQ9. Levy of GST in respect of ticket booked in India if place of boarding is outside India?
\nAns. The place of supply is outside India but as the supplier is located in India, it is a case of Inter-State supply and subject to IGST.
\nIt will be zero rated if the sale proceeds are realized in convertible foreign exchange.
\nReverse Charge
\nQ10. If an Assessee pays GST on behalf of an unregistered supplier\/SSI\/exempted unit, will he be able to take Input Tax
\nCredit of the GST paid on reverse charge basis?
\nAns. Yes, input tax credit of tax paid on reverse charge basis by the recipient is allowed to the recipient and the credit can be taken
\neven in the same month.
\nQ11. Whether, any Indian providing services to a U.S. based company on contract basis is required to pay reverse
\ncharges on charges deducted by a U.S. based company?
\nAns. It depends on the nature of charges deduc<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\npayments to petty contractors. Is GSTN under reverse charge applicable for these payments?
\nAns. If you are not registered, payment on reverse charge under Section 9(4) of CGST Act, 2017 is not required. That said, if such
\nservices availed fall within the domain of any service that is subject to reverse charge under Section 9(3) of CGST Act, 2017 you
\nhave to get yourself registered and GST has to be paid.
\nQ15. Can any unregistered transporter having a turnover below Rs. 20 lakh carry the goods for a registered dealer?
\nAns. Yes, GTA can carry the goods. GST on GTA services is liable to be paid on RCM basis by the recipient. The supply of services of
\nA call Cally the goods.851
\ngoods transport by road transporter other than a GTA and a courier is exempted under Notification No. 9\/2017-Central Tax (rate).
\nQ16. Whether re-imbursement of expenses to staff comes under RCM?
\nAns. Re-imbursement is an expense in the course or furtherance of business and if the same is agai<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nQ20. Whether the registration under GST is compulsory by Transport Service Provider.
\nAns. No, if the entire services supplied by the transporter are covered under the reverse charge mechanism under Section 9(3).
\nWill from
\nQ21. Will from 1\/7\/17, my corner kiranewala charge me GST on goods or services depending on his turnover or both
\nand give me an authentic\/printed memo for purchases?
\nAns. Liability for registration under GST arises if the aggregate turnover is more than Rs. 20 Lakh. If the corner kiranewala has
\nturnover greater r than I
\nRs. 20 lakh in the
\npreceding financial year he is liable to be registered, charge GST and provide you an
\ninvoice for your purchase.
\nQ22. How will I know if his turnover is below Rs. 20 lakh and if he is exempt from GST and that he will not charge me any
\nGST?
\nAns. Person having turnover over Rs. 20 lakh will take registration and registration certificate will be displayed at a prominent l<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nSection 31(3) of the CGST Act, 2017.
\nQ26. Do traders having turnover less than Rs. 20 lakh need to get registered under GST? If not, how can they purchase
\nprimary goods from other states without having GST Registration No?
\nGST
\nNATION
\nTAX
\nMARKET
\nAns. Traders having turnover of less than Rs. 20 lakh can buy from other States also without registration except in case of those
\ngoods which are subject to reverse charge.
\nQ27. Do I, a Mutual fund Distributor working in Delhi, need to register under GST, having income Less than Rs. 20 lakh
\nbut working for offices that are registered in Mumbai and have branch offices in Delhi?
\nAns. If you are supplying services to the branch office in the same State, it will be Intra-State supply and you will not be liable for
\nregistration. If you are making Inter-State supply, you will be liable for registration and benefit of threshold exemption would not
\nbe admissible.
\nQ28. We are a private ltd. Co. h<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nrifv
\nAns. As you are business entity and availing GTA services you are liable to pay GST on GTA services on reverse charge basis and
\ntherefore liable to be registered. Section 24 of CGST Act, 2017 may be referred.
\nQ31. Please clarify the position of GST in case of licensed Tour Guides having registered office in one state but
\nproviding services Pan India?
\nAns. If the presence of tour guide is required in each State and he is supplying services from those States then registration
\nrequirement in each state would be there.
\nQ32. If I already have a GSTIN, do I need to register separately as an Input Service Distributor?
\nAns. Yes, as per Section 24(viii) of the CGST Act 2017, an Input Service Distributor is required to take separate registration under
\nthe Act.
\nTransition
\nQ33. How the deemed credit of available stock and Work in progress (WIP) to be availed by an Assessee?
\nAns. The provisions relating to deemed credit are contained in the proviso to section 140(3) of the C<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nThe goods can
\nprescribed under Rule 138 of the SGST Rules, 2017 will also have to be carried by the person in charge of the conveyance.
\nQ36. Government has allowed increase in MRP due to additional incidence of GST. Can it be done for stock lying with
\ndealers & retailers or only for stock lying with manufacturer or importers?
\nAns. The prices can be revised where the incidence of tax has increased under the GST. However, one should adhere the
\nrequirements under other statutes like the Legal Metrology Act also.
\nQ37. Does tax need to be paid on advances in hand as of June 30th for goods to be supplied from July 1?
\nAns. No.
\nQ38. Builder is demanding balance money due to tax rate changed under GST. Do we have to pay service tax on entire
\namount of registration under GST, also if abatement provided before GST is available or not?
\nAns. GST is operational from 01.07.2017. Only on the balance amount GST will be applicable on future payments. For t<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nUnder transitional provisions all such excess ITC and Cash can be carried forward and GST can be paid from this amount.
\nQ42. Will the facility of deemed credit of 60\/40 percent of CGST under Rule 117(4) CGST Rules be available to both
\ntraders and manufacturers?
\nAns. The facility will be available to all persons other than manufacturers or supplier of services. Proviso to Section 140(3) of CGST
\nAct, 2017 refers.
\nQ43. There is a GST of 28% on a product of MRP Rs.100 and the costing price of that product is Rs. 90.90\/- (taxable
\nvalue + 14.5% VAT) so the taxable value of that product will be 79.38 and if the GST of 28% will be added to the
\namount without adding any profit then it will be 79.38+22.22 (28% GST) and the total value of the product will be
\nRs. 101.60\/- which is higher than MRP. So how it will be sold at the value higher than the MRP?
\nAns. MRP can be revised albeit with certain precautions and for only for certain time period. Press Note of<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nQ46. Certain fabrics were exempt from payment of central excise duty vide Notification No. 30\/2004-CE dated
\n09-07-2004. This exemption was subject to the condition that the manufacturer has not availed Cenvat credit
\nof duty paid on inputs. Thus the said exemption was not unconditional. Will ITC @40% of CGST be admissible to
\nthe taxable person in respect of such fabrics held in stock?
\nAns. Yes, ITC would be admissible.
\nMiscellaneous
\nQ47. When would advance ruling applications submission begin?
\nAns. The Government is in the process of constituting the Authority. It would be notified soon.
\nQ48. When are the recommendations of the sector wise task force expected to be submitted to the GST Council. Can
\nrepresentations still be made to the sectoral task force?
\nAns. Representation can be submitted to the sectoral working groups.
\nQ49. How will I know whatever GST I pay is really paid to government by various makers\/sellers<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n