Goods and Services Tax
01. What is Goods and Services tax (GST) and who pays this tax?
It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.
02.Which of the existing taxes are proposed to be subsumed under GST?
The GST Council shall make recommendations to the Union and States on the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be subsumed in the GST.
03. Which are the commodities proposed to be kept outside the purview of GST?
Goods and Services tax (GST) is a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption. So alcohol for human consumption is kept out of GST by way of definition of GST on constitution. Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included in GST. Furthermore, electricity has been kept out of GST.
04. Which authority will levy and administer GST?
Centre will levy and administer CGST & IGST while respective states /UTs will levy and administer SGST/ UTGST.
05. Who is liable to pay GST under the proposed GST regime?
06.What are the benefits available to small tax payers under the GST regime?
Tax payers with an aggregate turnover in a financial year up to [Rs.20 lakhs & Rs.10 Lakhs for NE and special category states] would be exempt from tax. Further, a person whose aggregate turnover in the preceding financial year is less than Rs.50 Lakhs can opt for a simplified composition scheme where tax will payable at a concessional rate on the turnover in a state.
07.What is the scope of composition scheme under GST?
Tax payers making inter- state supplies or making supplies through ecommerce operators who are required to collect tax at source shall not be eligible for composition scheme.
08. What is the taxable event under GST?
Taxable event under GST is supply of goods or services or both. CGST and SGST/ UTGST will be levied on intra-State supplies. IGST will be levied on inter-State supplies.
Yes, but only those activities which are specified in Schedule I to the CGST Act / SGST Act. The said provision has been adopted in IGST Act as well as in UTGST Act also.
10. What are composite supply and mixed supply? How are these two different from each other?
Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately. For example, a shopkeeper selling storage water bottles along with refrigerator. Bottles and the refrigerator can easily be priced and sold separately.
11. What is meant by Reverse Charge?
It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply.
12. Can any person other than the supplier or recipient be liable to pay tax under GST?
Yes, the Central/State government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services.
13. Can the registered person under composition scheme claim input tax credit?
No, registered person under composition scheme is not eligible to claim input tax credit.
14. What is aggregate turnover?
The value of goods after completion of job work is not includible in the turnover of the job-worker. It will be treated as supply of goods by the principal and will accordingly be includible in the turnover of the Principal.
15.Who is a Casual Taxable Person?
Casual Taxable Person has been defined in Section 2 (20) of the CGST/SGST Act meaning a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.
16.Is there any facility for digital signature in the GSTN registration?
Tax payers would have the option to sign the submitted application using valid digital signatures. There will be two options for electronically signing the application or other submissions- by e-signing through Aadhar number, or through DSC i.e. by registering the tax payer’s digital signature certificate with GST portal. However, companies or limited liability partnership entities will have to sign mandatorily through DSC only. Only level 2 and level 3 DSC certificates will be acceptable for signature purpose.
17.What are the necessary elements that constitute supply under CGST/SGST Act?
18. Are self-supplies taxable under GST?
Title as well as possession both have to be transferred for a transaction to be considered as a supply of goods. In case title is not transferred, the transaction would be treated as supply of service in terms of Schedule II (1) (b). In some cases, possession may be transferred immediately but title may be transferred at a future date like in case of sale on approval basis or hire purchase arrangement. Such transactions will also be termed as supply of goods.
22. What is a Composite Supply under CGST/ SGST/UTGST Act?
Composite Supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. For example, where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply.
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), two e-ledgers (Cash &Input Tax Credit ledger) and an electronic tax liability register will be automatically opened and displayed on his dash board at all times
Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and not other amounts such as interest, penalty, fees etc.
25. Can a challan generated online be modified?
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 the taxpayer.
payments under such contracts, the concerned Government/authority shall deduct 1% of the total payment made and remit it into the appropriate GST account.
27.How will the TDS Deductor account for suchTDS?
4. They need to issue certificate of such TDS to the deductee within 5 days of deducting TDS failing which fees of Rs. 100 per day subject to maximum of Rs. 5000/- will be payable by such deductor
No. The inputs/capital goods can be procured from the First stage and Second stage dealers also. Those dealers should have registered themselves with the Central Excise Department. The invoices issued by them should contain proper details about the payment of duty on those goods. (Refer Rule 9 of CENVAT Credit Rules, 2004.)
29. What are the documents prescribed for availment of the CENVAT Credit?
The documents on which CENVAT credit can be availed are as follows:-
30. What is Tax Collected at Source (TCS)?
withhold an amount calculated at the rate not exceeding one percent of the “net value of taxable supplies” made through it where the consideration with respect to such supplies is to be collected by the operator. Such withheld amount is to be deposited by such E-Commerce Operator to the appropriate GST account by the 10th of the next month. The amount deposited as TCS will be reflected in the electronic cash ledger of the supplier.
31. Is it mandatory for e-commerce operator to obtain registration?
Yes. The benefit of 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.
No. The threshold exemption is not available to such suppliers and they would be liable to be registered irrespective of the value of supply made by them. This requirement, however, is applicable only if the supply is made through such electronic commerce operator who is required to collect tax at source.
No. Threshold exemption is not available to e-commerce operator who are require to pay tax on notified services provided through them.
Principal shall be entitled to take credit of taxes paid on inputs or capital goods sent to a job worker whether sent after receiving them at his place of business or even when such the inputs or capital goods are directly sent to a job worker without their being first brought to his place of business. However, the inputs or capital goods, after completion of job work, are required to be received back or supplied from job worker’s premises, as the case may be, within a period of one year or three years of their being sent out.
35. Whether Cancellation of Registration Certificate is permissible?
Q 36. What will be the implications in case of purchase of goods from unregistered dealers?
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.
Q 37.What will be the composition of Authority for advance rulings (AAR) under GST?
‘Authority for advance ruling’ (AAR) shall comprise one member CGST and one member SGST. They will be appointed by the Central and State government respectively. Their qualification and eligibility condition for appointment will be prescribed in the Model GST Rules.
New registration would be required as partnership firm would have new PAN.
Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Q41. Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act.
A supplier of service will have to register at the location from where he is supplying services.
Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.
Q45.Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration? Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
A separate & new registration is required for ISD. New registrations are being opened from 0800 hrs. on 25.06.2017.
Q48. I have enrolled in GST but I forgot to enter SAC codes. What should I do?
The status is migrated. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
Separate registration as tax deductor is required.
Q51.Is separate registration required for trading and manufacturing by same entity in one state?
There will be only one registration per State for all activities.
Any person who makes make interstate taxable supply is required to take registration. Therefore in this case AP dealer shall take registration and pay tax.
Q53.Is there any concept of area based exemption under GST?
There will be no area based exemptions in GST
Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.
In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.
Q56. Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.
Advance refunded can be adjusted in return.
Q58. Do registered dealers have to upload sale details of unregistered dealers also in GST?
Generally not. But required in case of inter-State supplies having invoice value of more than Rs 2.50 Lakhs.
Returns provide for furnishing rate wise details.
