Frequently asked questions have been answered by CBEC
8 months ago SANJEET DWIVEDI 0
“Be ready for GST i.e one nation tax market as GST is coming from 1st ofJuly, 2017 ” – Central Board of Excise and Customs
Central Board of Excise and Customs(CBEC) has received various queries through its Twitter handle @askGST_GoI from various sectors of the economy. These queries have been answered to help people in understanding Good and Services Tax (GST) related minute details.
These queries and answers have been framed in question and answer form by Central Board of Excise and Customs(CBEC). CBEC has given these questions and their answers under eight sections.
The released first part has fifty questions and their answers. These questions and their answers have no legal validity as these are for public awareness. These questions and their answers are given as follows –
Category 1: Registration
Question 1: Does aggregate turnover include the value of inward supplies received on which RCM is payable?
Answer: Refer Section 2(6) of CGST Act.Aggregate turnover does not include value of inward supplies on which tax
is payable on reverse charge basis.
Question 2: What if the dealer migrated with the wrong PAN as the status of a firm was changed from proprietorship to partnership?
Answer: New registration would be required as partnership firm would have new PAN.
Question 3: A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter-State supply from one state. Is he liable for registration?
Answer: He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.
Question 4: Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till a new one is issued?
Answer: 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.
Question 5: Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
Answer: If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Question 6: Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Answer: Not liable to tax means supplies which are not leviable to tax under the CGST/SGST/IGST Act. Please refer to the definition under Section 2(78) of the CGST Act.
Question 7: Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at a state of head office will suffice?
Answer: A supplier of service will have to register at the location from where he is supplying services.
Question 8: Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Answer: Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the
aggregate turnover of the supplier.
Question 9: If there are two SEZ units within the same state, whether two are registrations required to be obtained?
Answer: SEZs under the same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.
Question 10: Is an advocate providing interstate supply chargeable
under Reverse Charge liable for registration?
Answer: 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.
Question 11: When is registration in other state required? Will giving service from Nasik to other state require registration in other states?
Answer: 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.
Question 12: I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure?
Answer: A separate & new registration is required for ISD. New registrations are
being opened from 0800 hrs. on 25.06.2017
Question 13: I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.
Answer: The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
Question 14: I have ST number on an individual name and have migrated to GST. I wish to transfer this on my proprietorship firm.
Answer: This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
Question 15: Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
Answer: GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing, aggregate supplies turnover of all supplies made by you would be
Question 16: If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs?
Answer: A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
Question 17: Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh?
Answer: There is no liability of registration if the person is dealing with 100% exempt supplies
Question 18: If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from the 1st supply I make post registration?
Answer: Yes, you would be treated as a normal taxable person.
Question 19: Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Answer: Separate registration as tax deductor is required.
Question 20: Is separate registration required for trading and manufacturing by same entity in one state?
Answer: There will be only one registration per State for all activities
Question 21: I am registered in TN and getting the service from an unregistered dealer of AP, should I take registration in AP to discharge GST under RCM?
Answer: 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.
Question 22: Is there any concept of area based exemption under GST? T
Answer: There will be no area based exemptions in GST.
Question 23: If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice?
Answer: Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
Question 24: How long can I wait to register for GST?
Answer: An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration
Question 25: What If I am not liable to register under GST but I was registered under Service tax?
Answer: You can apply for cancellation of Provisional ID on or before 31st July 2017.
Question 26: When turnover of agents will be added to that of the
principal for registration?
Question 27: If I am not an existing taxpayer and wish to newly register under GST, when can I do so?
Answer: You would be able to apply for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June 2017
Category 2: Refund
Question 28: I have a pending export refund in Service Tax. What will
Answer: Refunds under earlier laws will be given under the respective laws only.
Question 29: As an exporter, how do I ensure that my working capital is
not blocked as refunds?
Answer: Appropriate provisions have been made in the law by providing for grant
of 90% refund on provisional basis within 7 days from the filing of registration.
Category 3: Cess
Question 30: What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay?
Answer: Clean Environmental Cess on coal will be replaced by GST Compensation
Category 4: Composition Scheme
Question 31: Suppose I am in composition scheme in GST. If I purchase goods from an unregistered person, then GST will be paid to Government by me or not?
Answer: Yes, you will be liable to pay tax on reverse charge basis for supplies from
Category 5: Customs
Question 32: What duties will be levied on import of goods?
Answer: Customs duty and cess as applicable + IGST+ GST compensation cess. IGST
and GST compensation cess shall be paid after adding all customs duty and customs cess to the value of imports.
Category 6: Exports
Question 33: Present Procedures have Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will apply?
Answer: The export procedure for Nepal would be same as that to other Countries.
Question 34: Are there exemptions for SEZ? How will a SEZ transaction happen in GST regime?
Answer: Supplies to SEZs are zero-rated supplies as defined in Section 16 of
Question 35: How would the sale and purchase of goods to and from SEZ be treated? Will it be export/input?
Answer: Supply to SEZs is zero-rated supplies and supplies by SEZs are treated as imports.
Question 36: Please clarify the status of international export freight under GST as the same was exempt under POPS rules. It is zero rated in most countries.
Answer: POS for transport of goods determinable in terms of sec 12(8) or sect 13(8) of IGST Act, 2017, depending upon a location of service provider/service receiver. Exports are treated as zero rated supplies
Question 37: When goods are being imported from SEZ who will pay IGST?
Answer: 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
Question 38: Who will pay IGST when goods are procured from SEZ? Today importer is paying both BCD and CVD.
Answer: Such supply is treated as import and present procedure of payment
continues with the variation that IGST is levied in place of CVD.
Category 7: Input Tax Credit
Question 39: Is SGST of Rajasthan charged by a supplier on purchase from Rajasthan can be utilized for payment of SGST in Madhya Pradesh?
Answer: SGST of one State cannot be utilized for discharging of output tax liability of
Question 40: How one can use SGST credit for the payment of IGST on
Answer: SGST Credit can be used for payment of IGST liability under the same GSTIN only.
Question 41: Can one State CGST be used to pay another state CGST?
Answer: 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.
Question 42: In the case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?
Answer: 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.
Question 43: Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Answer: Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules
Question 44: How will the credit/debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Answer: 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.
Category 8: Invoice
Question 45: A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?
Answer: In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.
Question 46: Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
Answer: There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.
Question 47: All expenses like freight/transport/packing which are charged in Sales Invoice are taxable in GST? How to charge in the bill?
Answer: 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.
Question 48: Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?
Answer: 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.
Question 49: How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) The customer gets less quantity and pays less.
Answer: The supplier may issue a credit note to the customers and adjust his liability.
Question 50: Should we issue Self Invoice for GST liability discharge on RCM or GST can be discharged through expenses booking voucher?
Answer: For RCM liabilities tax invoice has to be issued on self.
Know About CBEC
“A nation is made, when taxes are paid” – Central Board of Excise and Customs(CBEC)
Central Board of Excise and Customs (CBEC) is a government of India organization which comes under Revenue Department of the Finance Ministry.
It formulates policy concerning with imposition and collection of service tax, central excise duty, and customs duty.
It also deals with deterrence of smuggling and narcotics menace.