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FAQs on GST - Part 4



This is in continuation of Part 1, Part 2 and Part 3 of FAQs on GST

76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of July 1, 2017?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

77. If a trader purchases directly from manufacturer and has documents showing excise, will he get full excise credit or 40 per cent of CGST?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

78. If an FSD purchases directly from manufacturer and has value cum excise duty and excise duty is not separately shown will he get full credit?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

79. Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

80. In June 17 VAT return no amount carried forward and held stock of Rs 50 lakh. Then can we take credit of that stock or not?
Ans. The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.

81. What will be the impact of closing stock which has been already paid vat on 1st July?
Ans. The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.

82. If in VAT return refund claimed in June 17 and no balance credit in GST. Then what's the position of submission of Form C
Ans. Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.

83. Some service was provided on June 28, 2017 but invoice will be raised on July 5, 2017. Whether we have to charge Service Tax or GST?
Ans. If Point of Tax arises after appointed date, then GST will be chargeable on such supply.

84. Would we be eligible for credit on Capital Goods in transit and received post GST?
Ans. No provision for such credit is there in GST law.

85. What about VAT balance pending on transition date?
Ans. Balance VAT credit in the return will be transferred to new provisional ID as SGST Credit.

86. What about deemed export against Form H?
Ans. Form H will not be there in GST.

87. Who will bear tax difference on closing stocks as on June 30, 2017? Whether the manufacturer/dealer or government?
Ans. Closing ITC in VAT return will be allowed to be carry forward in GST.

88. How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid?
Ans. For all inputs with duty paying documents available respective CGST/SGST credit will be available. But credit of CST will not be available.

89. A trader buys from manufacturer not registered in excise as his turnover is below 1.5 crore. Then in such case can traders take ITC on stock up to 40 per cent?
Ans. Deemed credit will be available on stock in hand provided the conditions of section 140(3) read with Rule 1(4) of Transition Rules are satisfied.

90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?
Ans. No such provision in GST.

91. Can ITC of Swachh Bharat Cess or Krishi Kalyan Cess be carried forward under GST?
Ans. No.

92. Will Clean Energy CESS on imported Coal at the rate of Rs 400 PMT continue to be applicable in GST?
Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess at the rate of Rs 400 per tonne.

93. Whether closing balance of education cess and secondary higher education cess prior to March 1, 2015 can be carried forward in GST?
Ans. No, it will not be carried forward in GST as it is not covered by definition of "eligible duties and taxes" under Section 140 of the CGST Act.

94. Can you clarify for 40 per cent benefit on closing stock does one year limit apply or not?
Ans. Deemed credit will be available for all stock procured within a 1 year period.

95. Till what time is transition credit available? Where do I need to declare my input stock?
Ans. The window to declare transition credit forms is three months from the appointed day. Please refer to transition rules for more details.
UTGST

96. Will there be GST in Andaman and Nicobar Islands as previously there was no VAT?
Ans. Yes. For supplies within Andaman and Nicobar Islands, CGST plus UTGST would be leviable.

OTHERS

97. Whether IGST would be levied twice on high seas sales? First on high seas sales and second on custom clearance. IGST paid on 1 available as ITC?
Ans. IGST shall be levied only once on imports.

98. Will Krishi Mandi Fee (imposed in U.P.) be waived off in GST?
Ans. GST does not concern such fee so GST does not affect it.

99. Is E-Way Bill applicable from July 1, 2017?
Ans. The present system for E-way Bill in states will continue till the E-Way Bill procedures are finalised.
100. Is there a sunset clause for Anti-Profiteering law?
Ans. Yes, the sunset clause for Anti-profiteering Authority is of two years.

FAQs on GST is available in 4 parts. 


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Item Reviewed: FAQs on GST - Part 4 Rating: 5 Reviewed By: PRASHANT ENTERPRISES