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Wednesday, June 28, 2017

FAQs on GST - Part 2



This is a continuation of FAQs on GST - Part 1

26. When turnover of agents will be added to that of the principal for registration?
Ans. No.

27. If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Ans. You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017

REFUND

28. I have a pending export refund in Service Tax. What will happen?
Ans. Refunds under earlier laws will be given under the respective laws only.

29. As an exporter, how do I ensure that my working capital is not blocked as refunds?
Ans. Appropriate provisions have been made in the law by providing for grant of 90 per cent refund on provisional basis within 7 days from filing of registration.

CESS

30. What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay?
Ans. Clean Environmental Cess on coal will be replaced by GST Compensation Cess.

COMPOSITION SCHEME

31. Suppose I am in composition scheme in GST. If I purchase goods from unregistered person, then GST will be paid to Government by me or not?
Ans. Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.

CUSTOMS

32. What duties will be levied on import of goods? Customs duty and cess as applicable + IGST+ GST compensation cess.
Ans. IGST and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.

EXPORTS

33. Present procedures have Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will apply?
Ans. The export procedure for Nepal would be same as that to other countries.

34. Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
Ans. Supplies to SEZs are zero-rated supplies as defined in Section 16 of IGST Act.

35. How would the sale and purchase of goods to and from SEZ will be treated? Will it be export / input?
Ans. Supply to SEZs is zero rated supplies and supplies by SEZs are treated as imports.

36. Please clarify status of international export freight under GST as the same was exempt under POPS rules.
Ans. It is zero rated in most countries. POS for transport of goods determinable in terms of sec 12(8) or sect 13(8) of IGST Act, 2017, depending upon location of service provider/service receiver. Exports are treated as zero rated supplies.

37. When goods are being imported from SEZ who will pay IGST?
Ans. Such supply is treated as import and present procedure of payment of duty continues with the 
variation that IGST is levied in place of CVD.

38. Who will pay IGST when goods are procured from SEZ?
Ans. Today importer is paying both BCD and CVD. Such supply is treated as import and present procedure of payment continues with the variation that IGST is levied in place of CVD.
INPUT TAX CREDIT

39. Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize for payment of SGST in Madhya Pradesh?
Ans. SGST of one State cannot be utilised for discharging of output tax liability of another State.

40. How one can use SGST credit for the payment of IGST on another state? 
SGST Credit can be used for payment of IGST liability under the same GSTIN only.

41. Can one State CGST be used to pay another state CGST?
Ans. The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities within that State for the same GSTIN only.

42. In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?
Ans. Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.

43. Company is engaged in manufacturing of cement and power. Which rule to be referred for reversal of credit related to power business?
Ans. Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.

44. How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR2 provides for reporting of same by the recipient.
INVOICE

45. A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?
Ans. In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

46. Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
Ans. There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.

47. All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?

Ans. All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.

48. Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?
Ans. If the goods are meant to be supplied in the course of construction an invoice is necessary. If the goods are tools which are to be used for construction then delivery challan should be issued.

49. How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Ans. The supplier may issue credit note to the customers and adjust his liability.

50. Should we issue Self Invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Ans. For RCM liabilities tax invoice has to be issued on self.



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