All Questions
Q.
Currently if there is any inter-state sale, then waybill is required to be issued?
A.Eway bill under GST regime has been postponed and currently old Eway bill required by state government are to be used till the time GST council notifies the new Eway bill rules.
Q.
What is the last date to submit closing stock?
A.In case of input credit for remaining stock, please make sure you file relevant returns under VAT, Excise, Service tax laws and also ensure that returns for last 6 months have been correctly file under each of these laws. Then within 90 days from 1st July TRAN 1 has to be submitted to avail old credit.
Q.
What is the rate for electrical items like, CU wires, cables & PVC conduits?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
What about branded and non-branded rice? What is the definition of branded, registered or unregistered with respect to GST?
A.There is no GST on non branded rice, in case branded rice there will GST at a specified rate. Definition of branded goods is to have brand registered under relevant laws such as registered trademark etc.
Q.
Spirulina capsules GST rate would be?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
Will prices of two wheelers go down?
A.The price of automobile industry needs to be checked in comparison to old taxation, but as a generic understanding of GST prices are set to come down.
Q.
For service tax, in what case do we need to register state wise? What services require such registration?
A.In case of services the person needs registration in the states from where they are providing services. All services except the exempt services such as Education, medical etc. will require registration under GST
Q.
Do transporters need to register under GST?
A.If transporter works as Goods Transport Agent (GTA) and their entire output is taxable under reverse charge then such transport does not need to take registration. But in case transporter does not get s covered under GTA or have some other income on which they have to charge the tax, then they need to take registration.
Q.
We are a trading firm and mostly import goods for further distribution. Clarity is needed on the process of sale of existing stocks and what kind of input tax is available post GST implementation. All products are under OGL.
A.Trader can take the credit of existing stock based on following scheme In case, trader is not having duty paid documents, a deemed credit scheme is introduced.Where the GST rate is below 18 per cent, only 40 per cent deemed credit will be available against GST Liability and retailers to make the claim of 60 per cent against the GST liability dues where the tax rate exceeds 18 per cent against the stock as on 30.6.2017.
Q.
Status of CST paid stocks in retail outlets. Are they valid for input credit? If not, should a retailer incur the loss of the taxes?
A.In case CST paid stock no credit will be allowed under GST regime, as CST was a cost under old VAT law.
Q.
Will it be there any impact on CVD? Any reduction on Import duties after implementation of GST?
A.CVD and SAD are merged into GST and now instead of CVD and SAD, IGST shall be charged.
Q.
If a composite supplier and a composite buyer, both in different states can do business?
A.No, Composite supplier cannot buy or sell inter state. Hence inter state business is not permitted for composite supplier.
Q.
As per RCM in GST law, a Director of a company is one of the category. Kindly enlighten us about a person’s eligibility to RCM, if he is a vice president of a company.
A.Services provided or agreed to be provided by a director of a company or a body corporate to the said company or the body corporate; shall be covered under reverse charge. A director holding a post of VP shall be also governed by such reverse charge.
Q.
Whether supply to EOU is taxable in GST since zero rated supply excludes EOU.
A.Supply to EOU is taxable under GST.
Q.
Can I avail credit of input as on 30 June on my CST purchases @ 2% against form “C”?
A.In case CST paid stock no credit will be allowed under GST regime, as CST was a cost under old VAT law.
Q.
Whether a trader falls in GST net, if his turnover is below Rs. 20,00,000 per annum?
A.No a trader or any business with a turnover of less than 20 lakh per annum shall not be covered under GST.
Q.
I am a trader cum manufacturer and have dealing in four states. Is it necessary to register under GST?
A.In case you have taxable supply from all 4 states then yes, you will required to be registered under GST for all states.
Q.
What about the milk packet? Cannot buy lose, where packed things are costly. How do explain this, buying milk lose, might not be the solution for this.
A.Since Milk is necessary item and facilitation of such product require packing the convenience of packing will attract GST, hence a possibility of packed milk being higher than loose milk will always be there.
Q.
How will I get input tax credit for remaining stock?
A.In case of input credit for remaining stock, please make sure you file relevant returns under VAT, Excise, Service tax laws and also ensure that returns for last 6 months have been correctly file under each of these laws. Then within 90 days from 1st July TRAN 1 has to be submitted to avail old credit.
Q.
How can I transfer my stock from one state to other state?
A.In case of stock transfer between two states, you can use tax invoice as a form and need to charge tax on such supply.
Q.
If GST is applicable in self transfers, then how can we say GST is one Tax One Nation? Here I’m paying GST twice when I am purchasing and transferring.
A.One tax one nation is a concept, since on input side and out side both are charged under GST. For transfer of stock from one location to other you need to charge tax from sending location and receiving location can take the credit of the same, hence at state level there might be taxation but if you look at the company level there is no tax loss.
Q.
What is the GST rate for batteries, inverters, water purifiers, solar & LED products?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
My son wants to buy nvidia 1070 GPU card on computer. What is the cost increase after 1st July?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
When I file my vat return on 30 June I will claim total input. Tax on my purchase against output tax of sales Then my total stock is 12.5 % vat paid if I sell under GST this stock @18% will I get credit against gst of 12.5 % vat paid earlier under vat? There is no excise component involved.
A.Yes, you will get the credit of 12.5% VAT deposited under old regime, you need to file TRAN 1 form to avail the credit under GST. This form needs to be filed within 90 days from 1st July.
Q.
What will be the tariff rate applicable for the following products under GST Regime: 1. Transformers(85042100) 2. Repaired Transformer(85042200) 3. Strip & Lamination for electrical transformer(85049010) 4. M S Scrap Scrap(72044900/72042190/72041000) 5. Aluminum Scrap (76020010) 6. Copper Scrap(74040029) 7. Nickel Scrap(75031000) 8. Air Purification machinery(84212900)
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
Will manufacturing, in general, suffer from greater taxation post GST? How long do you think it will take before the complications from GST get sorted out for all concerned?
A.No, the manufacturers will not face any hardship for greater taxation, rather they shall get the relevant credits which were not available earlier. The challenges in GST rollout are expected to stablise in next 2 to 3 months.
Q.
How should consumer products distributor software their billing?
A.I assume the question is regarding the billing of consumer products by distributor. The distributor shall have to issue a tax invoice in the prescribed formats and charge the relevant rate of GST on goods supplied.
Q.
What should the trader do about existing stock?
A.Trader can take the credit of existing stock based on following scheme In case, trader is not having duty paid documents, a deemed credit scheme is introduced.Where the GST rate is below 18 per cent, only 40 per cent deemed credit will be available against GST Liability and retailers to make the claim of 60 per cent against the GST liability dues where the tax rate exceeds 18 per cent against the stock as on 30.6.2017.
Q.
What will be the GST rate for a civil contractor?
A.Civil contractors are treated as works contract and hence they will charged at 18%.
Q.
Lube is in GST but diesel and petrol are in vat . If sale of lube at a petrol pump is below 20 lac then is it necessary to register under GST and to file returns under both GST and VAT?
A.No, in this case one does not need to take the registration for taxable supply of less than 20 lakh.
Q.
When we type the captcha code correctly system is telling captcha code to be typed correctly, what should be done?
A.This was a GSTN error which is now resolved please try again or you can take help from an expert.
Q.
How should retail shops do their billing?
A.Retail shop does not need to issue tax invoice for all the sales, they just have to give a daily summary of sales. They can use normal cash receipt for giving to customers.
Q.
We are send grey fabrics on approval base approval after 30 days. What should be the bill date? Can we send goods on performa invoice?
A.In case of goods sent on approval the date of approval or 30 days from dispatch which is earlier shall be treated as date of invoice. Yes, goods can be dispatched on challan.
Q.
If we will purchase a bike after 1st July what will be effect?
A.This price of automobile industry needs to be checked in comparison to old taxation, but as a generic understanding of GST prices are set to come down.
Q.
Will prices of televisions increase or decrease from July 1?
A.Since the television is kept in luxury goods and are charged at higher rate of tax, hence the prices of TV will rise under GST regime
Q.
What will be the impact of GST on electricity bill?
A.Electricity is exempt in GST. So, there will be no impact on the electricity charges for consumption or commercial purpose.
Q.
A vial or bottle cap / stopper / septum can be made of rubber or plastic or composite. This container is used in Pharma, chemicals, laboratory etc application. What will be the HSN code?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification.
Q.
If I purchase goods from a composite dealer, how do I pay the tax?
A.In case of purchasing from composite dealer, there is no requirement to pay tax on purchase, as he will be paying the taxes from his turnover. The purchaser needs to pay tax only on output supply to be paid.
Q.
We are a small tech startup, we sell software as a service for educational institutions, with annual revenue under 20 Lakhs, should we register for GST?
A.In case of turnover under 20 lakh, there is no need to register under GST regime.
Q.
If a dealer buys goods @ 28% and then sells it as a composite supply which will be taxed @ 18% taking into point principal supply, then the dealer will be eligible for refund under GST or not?
A.In case inward supply is at 28% and outward supply is at 18% and there is credit accumulation due to this process, then a dealer may opt to go for refund scheme as per GST rules.
Q.
What is the GST rate for xerox papers?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
What will be the market trend in connection with GST roll-out on the very next day of trading?
A.Market trends will not be impacted by GST roll out, though there might be a delay in delivery of lot of goods due to transition of GST,
Q.
What is the GST rate for rice packets?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
How to change our legal trade name?
A.In case you want to change a legal name under GST, then you need to file a fresh application for registration, though you can continue with the same old registration if your PAN is not changed due to GST.
Q.
I am an existing service tax assessee in Rajasthan State as ÂÂEngineer Consultancy ServicesÂÂ sub head. But as per new exempt limit of income for person providing service is Rs 20 Lakh per annum. Whether I am required migrate to GST or not. If not, then what action I need to take for my present service tax registration?Do I have to submit required return of service tax in the current year 2016-17?
A.- Requirement to migrate should not be there since the taxable turnover is below INR 20 Lakh. If migration to GST has already been done, option to cancel the registration can be exercised by filing application in Form GST REG-16 – However, this application shall not be considered before the expiry of a period of 1 year from the effective date of registration in case registration has been migrated- However, service tax return for FY 2016-17 would still be required to be submitted
Q.
Whether our Canteen Contractor (who cooks food at his place and serve it to our associates in the factory canteen) is eligible for Composition Scheme under GST? His annual turnover is over Rs.20 laks and he was covered under Service Tax.
A.- Composition scheme is available only to manufacturers, traders and restaurant service providers – Since the canteen contractor is engaged in providing outdoor catering services, he may not be eligible to opt for composition scheme- However, as the taxable turnover exceeds INR 20 lakhs, he is liable to obtain registration under GST
Q.
Last year my sale was around 5 lacs. Migrated from Delhi vat to GST in Jan.,2017. Now I have health Issues and Would like to wind up my business within a year. So, I am not interested to be in GST. What should I do?
A.- In case registration is sought to be cancelled application can be submitted electronically in FORM GST REG-16 – However, this application shall not be considered before the expiry of a period of 1 year from the effective date of registration in case voluntary registration has been obtained
Q.
Under which HSN code will road safety products fall? Whether under 8608 or 3926? Whether the rules of interpretation will continue under GST for classification of Goods.
A.Under which HSN codes road safety products will fall ? Whether under 8608 or 3926? Advise whether the rules of interpretation will continue under GST for classification of goods. (i) 3926 – is the HSN classification for feeding bottles, plastic beads, PVC belt conveyor etc(ii) 8608 – is the HSN for safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields; parts of the foregoing(iii) 8530 – is the HSN for electrical signalling, safety or traffic control equipment for railways, tramways, roads, inland waterways, parking facilities, port installations or airfields (other than those of heading 8608)Accordingly, depending upon the exact nature of goods and as per the explanatory notes the classification should be analyzed. Further, rules of interpretation will continue under GST for classification of goods (refer rate notifications under CGST and IGST Acts)
Q.
Whether one is eligible to claim refund of accumulated input tax credit if the GST rate on Inputs is more than that on outward supplies?
A.Refund of accumulated credit is allowed to be taken only in case where the credit has accumulated on account of rate of tax on inputs being more than the rate of tax on output supplies (other than nil rated or fully exempt supplies). However, refund in respect of credit accumulation (due to rate differential) for items listed under Notification 5/2017 – Integerated Tax (Rate) dated June 28, 2017 would not be allowed.
Q.
As a FMCG distributor I’m not aware to whom I can bill. The bills’ value is usually between 300 and 400.
A.- Persons registered under GST are required to issue tax invoices in respect of their supplies irrespective of the nature of the buyer (ie whether registered or not)- However, in case the value of taxable supplies to unregistered buyers is less than INR 200 and the buyer does not require a tax invoice then, the supplier may choose to issue a consolidated invoice for such supplies at the close of each day
Q.
We want to engage a contractor for civil, electrical and other miscellaneous work at our factory? What would be applicable GST rate for such work?
A.Works contract services of:- Construction are taxable at the rate of 18 percent- Maintenance, repair and installation at the rate of 18 percent
Q.
What is the Compensation Cess on coal obtained through captive mining?
A.Compensation cess on coal falling under Chapter 2701, 2702 and 2703 is applicable at the rate of INR 400 per tonne.
Q.
What is the reverse mechanism rate on GTA inward & outward under GST?
A.Services of GTA for both inward and outward transportation of goods would be liable to GST at the rate of 5 percent payable under reverse charge by the recipient. Reverse charge would apply if the services is received by either of the following:- Body corporate- Factory- Society under the Society’s Registration Act, 1860- Co-operative society- Person registered under the CGST, IGST and UTGST Act- Partnership firm- Casual taxable person
Q.
What are the GST rate and HSN and SAC code for AMC and CAMC for air conditioner?
A.GST is @ 18% on annual maintenance services under Heading 9987 { Maintenance, repair and installation (except construction) services.}
Q.
For the registered housing society, members paying maintenance charge less than Rs.5000/- per month is exempted from GST. For members who are paying more than Rs.5000/- per month , can we exclude diesel charges (used for Gensets) and water charges (used for common purpose) from the maintenance charge collected above Rs.5000 to avoid GST?
A.GST will be levied on amount collected from members over and above INR 5000/-
Q.
How much gst will be charged for digital prints and offset print?
A.GST is @ 18% on printing services
Q.
As a telecom distributor, suppose I trade recharge voucher of 1crore in a year and earn 1,30,000 as commission on this trade, which should be considered my turnover?
A.Agents/distributors are required to take registration under GST, irrespective of turnover.
Q.
What’s the amendment procedure in case of PAN change? My firm migrated as proprietorship firm but now converted into Partnership firm from 1.4.2017.
A.If there is any change in constitution of business results in change of PAN, the applicant will have to file for a fresh registration in FORM GST REG-01.
Q.
In the horse racing industry the monthly maintenance of a race horse includes the feed inputs and the salary component of the caretaker. Will the GST be charged on the entire amount and what will be the rate?
A.GST will not be levied on feeds as well as on salary under GST regime.However, when outward supply is provided using such components, any amount charged against such supply will be taxable under GST regime.
Q.
What will be the GST rate applicable on cement?
A.Rates under GST for cement are as follows:i) Refractory cements are @18%ii) Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers are @28%iii) Resin cements are @28%
Q.
I run a Pvt Ltd firm, at times I take my clients for dinner for sales an d promotions. though I book the Hotel bill in my expenses, I would like to know if I can claim rebate on GST charged on Hotel Bill even though my companys name and GST no is not mentioned on Hotel’s Bill (or for that matter any other invoice).
A.Credit of GST paid in respect of food and beverages is not allowed. Further, tax invoice without containing GSTIN of the company is not a valid document for availing credit under GST regime.
Q.
Upto how much turnover for B to B, HSN code is to be mentioned? Up to how much turnover for B To B filing invoice is exempted?
A.Requirement to declare HSN code is dependent upon the annual turnover of the preceding financial year. Same has been provided below:- annual turnover up to than INR 1.5 Cr. – HSN Code need not be declared – annual turnover between INR 1.5 Cr to 5 Cr – 2 digit of HSN to be declared- annual turnover more than INR 5 Cr – 4 digit HSN to be declaredFurther, a registered person under GST needs to issue tax invoice in every cases.
Q.
How to upload the GST transition formats on GST portal?
A.Utility in respect of transition forms will soon be available on GST portal. A person is required to fill and upload such utility for transitioning credit under GST regime.
Q.
What is the rate of tax for Ocean Freight?
A.GST is @ 5% on ocean freight.
Q.
We provide services to customer units in SEZ and non-SEZ locations. Understand that GST cannot be charged for services provided to units in SEZ locations. 1) Is there any documentation to be taken from customer on this?2) Can we set-off the input GST for Material & services brought for this against the output GST charged to non-SEZ clients?
A.No document is required to be taken from SEZ customers for the purpose of GST.Further, Setoff is available of input GST received in respect of supplies made to SEZ units with output GST charged.
Q.
What is rate of tax for Cement and Bricks?
A.Rates under GST for cement are as follows:i) Refractory cements are @18%ii) Portland cement, aluminous cement, slag cement, super sulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers are @28%iii) Resin cements are @28%Rates under GST for Bricks are as follows:i)Sand lime bricks and Fly ash bricks are @12%ii)Building bricks and Bricks of fossil meals or similar siliceous earths are @5%
Q.
We take 5 trucks on rent and provide transportation to a Ltd company, can we take a registration and what is the GST effect on our business. Can we pay tax?
A.In this case If GTA services are provided to a limited company/body corporate then you are not required to charge GST on such services and the same will be payable by such body corporate under reverse charge mechanism.
Q.
A trader sends material to a manufacturer for job work. Manufacturer will charge GST on labour charges or on the material value as well?
A.GST will be charged only on the labour charges or services provided by the Job worker.
Q.
How to get a two year old VAT refund under GST?
A.Any refunds pending under VAT law will be disposed off in accordance with the provisions of VAT laws.
Q.
I am a real estate consultant. I am registered with RERA and my turn over is below 20 lakhs. Do I require a GST number?
A.No
Q.
Under GST, 15% Service Tax is replaced by 18% GST. The service provider will get Input Credit of GST it has paid. Will it pass on this to its clients? If not, what client should do to get this benefit from the Service Provider?
A.Service provider will be eligible to claim input credit of GST and will reduce price basis anti-profiteering clause under GST regime.Therefore, customer should initiate price negotiations with service providers to pass on benefit accrued due to GST.
Q.
Is it possible to take credit of GST from online sellers like flipkart & Amazon. Are they registering as registered GST customers for b&b online sale?
A.Electronic commerce operators like flipkart, Amazon e.t.c are required to take registration under GST regime, irrespective of turnover.Further, input credit could be available of procurement made from online dealers provided GST number is mentioned.
Q.
What does it mean by Exemption in taxes in healthcare sector. How exactly is it benefiting doctors or patients ?
A.Following services are Nil rated under GST regime:(i) Health care services by a clinical establishment, an authorised medical practitioner or para-medics.(ii) Services provided by way of transportation of a patient in an ambulance.(iii) Services by a veterinary clinic in relation to health care of animals or birds.Therefore, doctors providing above mentioned services will not charge GST resulting no extra tax burden on patients due to GST.
Q.
We have resturant & bar(Partial A/C) in Mumbai, our business is more on liquor then food as business is situated in lower middle class area. Earlier taxation was 11%(5 Service Tax + 6 % VAT) which we were paying and in new GST (18%) would be addition burden of 7 % will ruin our business. we can’t charge 18 % from customer in today’s. GST is actually ruining small time business players like us.
A.You may consider option for the composition scheme in which case tax can be paid at a lower tax rate of 5%
Q.
How much is GST on steel almirah?
A.Steel almirah will be taxable @28%
Q.
What is the GST rate for educational services?
A.Services provided by an educational institution to its students, faculty and staff upto higher secondary, is Nil rated under GST regime.
Q.
How to transfer the balance 50% Capital Goods Credit during the period of April-2017 to 30th June 2017 to GST regime? or may I avail / utlise this credit in the month of June duty payable account?
A.For transferring balance unutilised input credit on capital goods , You are required to submit an online application in FORM GST TRAN-1 on the GST portal upto 30th September 2017.
Q.
What is the slab for house rent in GST ?
A.Renting of house for residence purpose is at Nil rate under GST regime.However, renting of property for commercial use is at 18% under GST regime.
Q.
Do builder making residential flats have abatement scheme on providing services (sell to buyer)against the receiving services(works labour)?
A.In GST under construction flat will be subject to 12% taxBuilder would be entitled to take input credit of GST paid on their procurement.
Q.
In agriculture warehouse, does leasing a warehouse and doing deposition for third party will attract GST? if yes how much?
A.Assuming these services have been provided in respect of agricultural produce, No GST would be payable on these services.
Q.
(1) How much service tax rate in purchasing residential flats(2) would Builder have input tax credit on purchasing Building Material(3)will have any composition scheme for builder for construction residential flats.
A.In GST under construction flat will be subject to 12% taxBuilder would be entitled to take input credit of GST paid on their procurement.
Q.
Whether business expenditure be disallowed if it is not supported by GST invoices? Example if a tea vendor does not supply GST invoice, whether such expenditure be disallowed?
A.Tax invoice issued as per GST law is required to avail credit under GST regime.Further , GST will not impact any provisions of Income tax Act in regard to dis-allowance of expenditure.
Q.
How to do billing?
A.For supply of goods: Tax invoice needs to be raised before or at the time of removal of goods.For supply of services : Tax invoice needs to be raised within 30 days of completion of service.For exempt supplies : Bill of Supply to be raised.Please refer the rules for the information to be mentioned on the tax invoices / bill of supply.
Q.
What is the GST rate on Air Freight Cargo and how exporter will get tax credit on it? It was under exemption before GST?
A.GST will be @18%Further, an exporter is eligible to take credit of input services recieved and can adjust such credit with his output GST liability.However, if credit remains unutilised then exporter can file refund for the same.
Q.
We were also trading from a manufacturing unit (after taking approval from Excise). How would the trading be invoiced in GST regime? Any credit available on purchase of trading goods by a manufacturing unit?
A.Manufacturing unit will charge GST and the same will be available as credit to you.
Q.
I have purchased a flat & made payment & due to strike on 30/6/17 registry was not done although stamp papers were purchased on 30/7/17. Will I have to pay more for GST?
A.We understand that you have purchased a fully constructed flat.Hence, no GST implication will arise.
Q.
As per CGST, a person whose aggregate turnover is more than Rs 20 lacs in a year, is required to register under GST laws. The definition of turnover mentions total taxable supplies (excluding inward supplies where Tax is paid under RCM). The Taxable supplies could be Inward or outward. In that case please clarify if procurement of Goods or supply or both which is taxable under GST is to be calculated for the purpose of arriving at Turnover. To put this more simply, if a person is engaged in the business of exempt supplies but procures taxable Goods and services more than Rs 20 lacs from registered/unregistered persons, is he required to register under GST laws.
A.Value of procurement of goods and services is not required to be considered while computing INR 20 lacs for the purpose of registration
Q.
What is the CST reimbursement for SEZ units?
A.As there will be no CST going forward , no question of reimbursement will arise.
Q.
How to confirm what the GST is correct and how to find the HSN code?
A.HSN code wise rate has been notified by Goverenment. Please follow below link to get HSN code and rates for goods and services:http://www.cbec.gov.in/htdocs-cbec/gst/central-tax-rate-notfns-2017
Q.
How to show the GST paid on advance from customer in the final Invoice? Is any GST exemption/rebate for goods supplies to Mega power project? When and how to avail RCM June 2017 payment payable on 06.07.2017?
A.On final Invoice adjustment of advance can be shown below to the final amount including GST.Further, No GST exemption will be available for supplies made to Mega Power ProjectsAs per the CENVAT Credit Rules, 2004, credit of service tax paid under reverse charge was available in the month when payment was made. In case the payment is made in July, then the credit of the same cannot be availed in the month of June. You may consider filing a refund for the same.
Q.
Running a small guest house, annual turn over less than 10 Lacs. Room rent range between 1000 and 2500. Do I charge my guests 12% GST?
A.No, GST will apply only after you cross 20 lakh.
Q.
What will be GST implication in barter system? Â
A.Barter also amounts to supply in GST and hence GST will be applicable
Q.
We get fabric from our customers and we print it on job-work basis using digital printers in addition to pre and post-processing. Fabrics are cotton, rayon, silk, wool, polyester or blended. What is the GST rate for us.
A.This is fact based and will need to be ascertained for each item, please check with the GST Tariff Notification
Q.
I am a retail trader with aggregate turnover of less than 20 Lacs. I have taken a commercial property on rent of Rs. 5000/month. The landlord is now asking for my GSTIN and asked me to pay GST on it. Do i need GST registration? Whether O will have to pay GST to him on the bill raised or he will himself be liable to pay?
A.If your turnover is less than 20 lakh, you are not required to be registered. The landlord cannot compel you to register. However, he may apply a reverse charge as you are unregistered.
Q.
I am paying consultancy charges of 100,000 INR for an independent consultant (Services are software related). As an organization, do I need to pay GST for this spent?
A.If the independent consultant is unregistered, then reverse charge will apply.
Q.
Can I avail input credit on the clothes provided to sales personnel at my store? It carries the name of my store. Does it amount to brand promotion? Â
A.Should be available, better to await clarification.
Q.
Whether raw material, semi finished, in-process and finished stock as on 30/06/17 has to be filled in GST tran-1?
A.Yes
Q.
What will an AC amounting to Rs.30000 cost me after GST?
A.It would be approximately of the same amount.
Q.
We are foundry equipment manufacturers. Are the packing / freight charges taxable under GST? Â
A.Yes, it shall attract GST as these are incidental expenses and form part of value of supply
Q.
Is any specific invoice format for exports? Â
A.The invoice format is the same as prescribed for other scenarios with the exception that it shall contain the following âSUPPLY MEANT FOR EXPORT ON PAYMENT OF INTEGRATED TAXââ or âSUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAXâ
Q.
As a used car dealer, for now every time when you transfer a used car to a different state, you have to pay a huge road tax. What is the GST status on the same?
A.Road tax would not get subsumed in GST and shall apply.
Q.
What would be the customs duty for gold carried to India by an NRI?
A.An NRI shall be allowed duty free clearance if he carries in his baggage 20 grams gold with a maximum value cap of INR 50,000 (by a gentleman) and 40 grams with a value cap of INR 1 lacs (in case of a lady passenger).
Q.
My father is a wholesale businessman in Delhi. He trades in betel leaves (paan leaves) wherein the farmer brings the leaves to him and he being the commission agent sells them to retailers all over India. His annual gross sale is around 1 crore and his gross commission is 15 lacs per annum. Till date his trade was exempted under service tax, excise duty and VAT. Betel leaves (paan) comes under the exempted goods category under the GST also.Therefore, is he required to register under the GST or not?
A.If supplies are exempt, then he is not liable to take registration under GST
Q.
What is the GST rate for a handloom manufacturer with 6 lac annual turnover?
A.Most of handloom products fall under the tax bracket of 5% and a few are covered under 12%There is no liability to get registered in case aggregate turnover is less than 20 lakh (or 10 lakh in special category states).
Q.
Am I required to register myself under GST? As a freelance dance choreographer living in Gurgaon who provides services to institutions, corporate and for weddings in delhi and Gurgaon. I’m a lso a salaried employee in a school in Gurgaon. Professional receipts are under Rs. 20 lac and salary is Rs. 9 lac. Am I required to register myself under GST?
A.You are required to get registered since you are making Inter-state supplies (from Haryana to Delhi) even if your aggregate turnover doesnât exceed 20 lacs. And it should be noted that salary doesnât form part of your aggregate turnover, since any services provided by employee to employer is not considered as a supply at all.
Q.
Invoicing for Works Contract under VAT regime used to be 60% for Material & 40% for labour for new work. Under GST, are we required to show item-wise material used for the work in case our turnover is more than 1.50 crores?
A.There is no need to issue item-wise description of material consumed while providing works contract which is deemed to be a composite supply of service under GST regime. Since aggregate turnover is exceeding 20 Lacs, you are required to get registered under GST Law and thus a tax invoice as per CGST Rules shall be issued while making taxable supply.
Q.
Is GST applicable on sale of inherited property? Is GST applicable on purchase or resale property?
A.No, GST is not applicable on sale of inherited immovable property or purchase or resale of such immovable property
Q.
We are manufacturers of iodised salt. Earlier there was exemption in excise and no VAT liability and the input tax credit was not claimed. Now we falls in zero rated product, do we need to make tax on reverse charge and pay tax?
A.Yes, you need to make payment on reverse charge basis, wherever applicable, even when you are supplying exempt goods such as Iodised salt.
Q.
Whether employee reimbursement expenses such as cab hire or food expenses paid by employee first in his name and later on claimed from company will be liable for GST?
A.In case expenses are incurred by employees for procurement of goods/ services from unregistered dealer then no GST is leviable on reimbursement of expenses by company to employee.In our view, for procurement by employee the tax shall not be payable by the company since this transaction per se is not undertaken by the company.However more clarity is awaited on the same from government.
Q.
Indian Innovators Association is an NGO registered as society. We get grants from government to organize events. Is GST applicable on this type of service?
A.Answer to this question requires detailed examination of facts. If in a given case a grant can be said to give rise to a supply, it may be within the purview of GST. Further, organizing of events is a recognized taxable service. On the other hand, where the grant cannot be linked to a particular supply, then it may not be regarded as a consideration for a taxable supply and would be outside the purview of GST. An example would be grants-in-aid to research bodies which do not require a specific type of research and charitable grants which are unconditional. It is suggested that the querist seek professional guidance based on full facts.
Q.
Can input tax credit be claimed on economy fare of airlines, if travelling for business?
A.Yes
Q.
What is the GST rate on Services?
A.The general GST rate on services is 18. However, there are specified services on which 5%,12% and 28% rate is also levied.
Q.
How will GST impact a temple under a trust with very low budget?
A.Services by way of (a) conduct of any religious ceremony and (b) renting of precincts of a religious place meant for general public, owned or managed by an entity registered as a charitable or religious trust under the relevant provisions of the Income Tax Act are exempt from tax. The latter exemption, however, is not available where the charge towards rent:-⢠of a room exceeds Rs. 1000 per day;⢠of a hall, mandapam, open area etc. exceeds Rs. 10000 per day;⢠of shops, spaces etc. for business or commerce exceeds Rs. 10000 per month.
Q.
What will be the implication of GST on aqua culture (fish and prawns)?
A.Fresh and chilled fish and prawn are exempt, while frozen, salted, dried etc. fish and prawn attract 5% tax. Aquatic feed including feed for prawns and shrimp is also exempt from tax. Further, services relating to rearing of all life forms of animals are exempt.
Q.
Is GST applicable on buying ready to move in flats, as the buyer of these flats may not get credit of excise/vat/sales tax paid by builders?
A.We understand that your ready to move house is a fully constructed flat and completion certificate for the same is available. On such flats no GST would be payable.
Q.
What happens to the road tax rate at inter-state point?
A.Road tax will continue.
Q.
How does GST effect manufacturing industries tax rate wise? Have we seen any changes in rates or prices of shares or bonds relating to manufacturing industry in particular?
A.As GST eliminates cascading of taxes, it will impact each company / industry differently depending upon their procurement pattern and credit availability. Yes, there have been changes in share prices of manufacturing industry.
Q.
What are the GST rates for old car sale and purchase?
A.GST rate on sale of old cars will be as follows: On Small Cars (length < 4 m ; Petrol < 1200 cc ), GST rate would be 28 percent plus 1 percent cessOn Small Cars (length < 4 m ; Diesel < 1500 cc), GST rate would be 28 percent plus 3 percent cessOn Mid Segment Cars (engine < 1500 cc),GST rate would be 28 percent plus 15 percent cessOn Large cars (> 1500 cc),GST rate would be 28 percent plus 15 percent cessOn Sports Utility Vehicles (length > 4m ; engine > 1500 cc; ground clearance > 170 mm), GST rate would be 28 percent plus 15 percent cessOn Mid Segment Hybrid Cars (engine < 1500 cc), GST rate would be 28 percent plus 15 percent cessOn Hybrid motor vehicles > 1500 cc,GST rate would be 28 percent plus 15 percent cessOn Motor Vehicles (10< persons< 13), GST rate would be 28 percent plus 15 percent cessHowever, the valuation for the purpose of GST for the person dealing in buying and selling of second hand goods will be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. Input tax credit is not available in this case.Also valuation for the persons, other than second hand goods dealers, will be the sales value.Further, CGST is exempted vide Notification No. 10/2017-Central tax (rate) on intra-state supplies by unregistered person to a person dealing in buying and selling of second hand goods and paying CGST on the basis of margin as per GST Valuation Rule 32(5)- from entire liability under reverse charge mechanism.
Q.
How would GST impact service tax paid by home owners? Flat is ready to move in (builders completed work) but didn’t get completion cert. Would service tax 4.5% or 12%? Property is in West Bengal, 24 north 24 parganas.
A.We understand that payment in respect of such flat is required to be made before getting completion certificate. Construction of building for sale has been deemed to be a service in terms of Entry 5 of Schedule II of CGST Act. Accordingly GST @ 18% will be levied on the amount paid after 30th June 2017.Further the value for the purpose of GST would be considered as 2/3rd of the total amount paid. (assuming the value of land is included in the amount charged from you.)
Q.
We have rented 3 ATM spaces to Banks. Annual Rental income is Rs. 5 lakh. Do I have to charge GST from Banks? Do I need to register under GST?
A.No, assuming aggregate turnover is below INR 20 lakhs
Q.
We are a custom house agent providing clearing services. During the course of providing services we act as an agent and deposit certain statutory dues such as custom duty to the Govt on behalf of the Principal. How to recover these expenses from the principal? Under the present GST scenario can we raise a debit note or invoice and whether it is subject to levy of GST?
A.For recovery of customs duty component you would qualify as pure agent and GST need not be paid on the customs duty part.Following conditions needs to be fulfilled for qualifying as pure agent:(i) the supplier acts as a pure agent of the recipient of the supply, when he makes payment to the third party on authorization by such recipient;(ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure agent to the recipient of service; and(iii) the supplies procured by the pure agent from the third party as a pure agent of the recipient of supply are in addition to the services he supplies on his own account.
Q.
What is the tax rate and HSN code of the items listed under Heading 8432?
A.The rate would be 12% on items listed under the head 8432 (Agricultural,horticultural or forestry machinery for soil preparation or cultivation; lawn or sports-ground rollers). Further for HSN classification of particular Item falling under heading 8432, Please go to the link provided as follows: http://www.cbec.gov.in/resources//htdocs-cbec/customs/cst1617-300616/chap-84.pdf
Q.
I am a salaried employee paying income tax. On that I have to pay GST for mobile, internet and many other expenses. Can I claim that GST in my income tax? Is it the same way I have to pay income tax and then the tax on other purchases?
A.Set off of GST with income tax is not allowed.
Q.
Is is compulsory to add HSN code on invoice? If yes what are conditions i.e do we need a certain amount of turnover?
A.Requirement to declare HSN code is dependent upon the annual turnover of the preceding financial year. Same has been provided below:- annual turnover up to than INR 1.5 Cr. – HSN Code need not be declared – annual turnover between INR 1.5 Cr to 5 Cr – 2 digit of HSN to be declared- annual turnover more than INR 5 Cr – 4 digit HSN to be declared
Q.
I want to access APIs using which I can file returns of my client, a few giants have secured and cordon the GSP space, smaller ones like I can’t stay in business. Can you guide how to get access of APIs and how much it would cost? Few GSPs are providing APIs. Big names like bodhtree are charging 1cr for franchise.
A.Only a person who is a GSP (GST Suvidha Provider) can get APIs to file GST return. Please connect with any of the GSP.
Q.
What is the GST rate applicable on an under construction apartment?
A.Construction of building for sale has been deemed to be a service in terms of Entry 5 of Schedule II of CGST Act. Accordingly GST @ 18% will be levied on the amount paid after 30th June 2017.Further the value for the purpose of GST would be considered as 2/3rd of the total amount paid (assuming the value of land is included in the amount charged from you).Therefore, effective GST rate will be 12%
Q.
We are providing transportation services to selected companies in consumer durable segment through our vehicles as well through hired vehicles, we are registered under GST, what will our liability be?
A.Assuming services of goods transport agency (GTA) are provided by you, in this casei if services are provided to the following persons:(a) any factory registered under or governed by the Factories Act, 1948;(b) any society registered under the Societies Registration Act, 1860 or under any other law for the time being in force inany part of India;(c) any co-operative society established by or under any law;(d) any person registered under CGST/SGST/UTGST Act;(e) any body corporate established, by or under any law; or(f) any partnership firm whether registered or not under any law including association of persons.(g) Casual taxable personthen you are not required to charge GST on such services, as the same will be payable by them under reverse charge mechanism.Further If such services are provided to persons other than listed above, then there are two options available with you:Option 1 : Charge GST @ 5% and not avail input tax credit.Option 2: Charge GST @18% and avail input tax credit.
Q.
As consultants, our annual fees comes around Rs. 10 lakh+ Rent income around Rs 2.25 lack+ turnover in mutual funds of around Rs. 10 Lakh. Do we have to register under GST?
A.Assuming by turnover in mutual funds, you mean turnover of sale of units of mutual funds, only 1% of INR 10 lakh will form part of total turnover. Hence,You are not required to be registered under GST Act as your aggregate turnover is below the threshold limit of INR 20 lakh.
Q.
GST of 5% has been levied on branded commodities which are registered under the Indian Trade Mark Act. Does the brand for which registration has been applied but not yet registered, marked as TM be taxed under this provision?
A.Unless the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, GST rate of 5% will not be applicable on the supply of such goods. Clarity in this respect is also provided by Ministry of Finance through Press Information Bureau dated 05/07/2017.
Q.
I purchased an apartment, it’s construction will complete in Aug 2017. I paid a small portion of the total amount. What is the GST applicable for the amount paid after 30th June 2017? Kindly
A.Construction of building for sale has been deemed to be a service in terms of Entry 5 of Schedule II of CGST Act. Accordingly GST @ 18% will be levied on the amount paid after 30th June 2017.Further the value for the purpose of GST would be considered as 2/3rd of the total amount paid. (assuming the value of land is included in the amount charged from you.)Therefore, effective GST rate will be 12%.
Q.
We sell shoes through an online websites after getting the job work done by small craftsmen. Her business turnover has been below 20 lacs. However, the websites insists she take on a GST number. How would the transaction and GST reporting work in this case for her?
A.As per our understanding your question is related to reporting requirements for supplies made by shoe seller through online websites and not from the perspective of Job worker.Such supplies are to be reported in S.No. 4C of GSTR-1
Q.
What is the GST rate applicable for Gas Mantle used for kerosene pressure lanterns?
A.GST rate will be determined basis HSN classification of Gas Mantle.
Q.
In case of office rent the monthly rent is Rs 40.000, but total income of the person is below 20,00,000 the owner has to issue Rent Invoice with GST?
A.No, If the total turnover of owner is below INR 20 Lakh then he is not required to be registered under GST Act and will not issue tax invoice with GST.However, if a registered person is receiving services/goods from unregistered person under GST regime then that registered person is liable to discharge GST under reverse charge mechanism.Hence, in the given scenario if you are registered under GST Act and the owner of the commercial premises is unregistered then you need to discharge GST liability under reverse charge mechanism.”
Q.
Will there be GST on goods being manufactured and transported from Kashmir to other states for exports?
A.In regard to your query there can be two possibility: 1) Supply of goods directly to the port for the purpose of export: Then this supply will be treated as Zero rated supply and below mentioned options are available:-export of goods without payment of IGST under bond/LUT-export of goods with payment of IGST 2) Supply of goods to a customer located in other state: Then IGST will be levied on such supplies.
Q.
What is the impact of GST on high sea sale imports?
A.High sea sales continues to remain exempt under GST as it was earlier.
Q.
As a food grain trader having closing stock before June 30, do we have to pay any tax on it? Since the purchase was made with VAT paid. Do we have to pay any tax is we sell this stock after GST is implemented?
A.Will need to pay GST on stock held before 30th June 2017, if it it sold with effect from 1st July. Please check if your specific item is exempt from GST or not. Will get credit for VAT paid on closing stock.
Q.
We are not registered as currently the turnover is under 20 lakh rupees. Once we cross the threshold limit, do we have to pay the tax on the entire amount or on the amount added to the 20 lakh limit?
A.Just like under service tax, GST will have to be paid on the entire amount of turnover after threshold of 20 lakhs is crossed.
Q.
Will credit be available on GST paid related to indirect expenditure?
A.Credit of any expenditure made in relation to business or for furtherance thereof would be allowed under GST. Therefore, credit on GST paid related to indirect expenditure shall be available.
Q.
The builder is insisting that I pay the remaining amount for my duplex before July 1. Should I make the payment or wait?
A.Depends on how much construction has already been carried out by the builder. If the construction is in the early stages, don’t pay because GST should bring down prices and tax burden and the developers are expected to pass on this benefit to the customers.
Q.
Will there be a bond for exporters instead of paying GST? (Something similar to the CT1 bond)
A.Yes exporter can supply without payment of IGST under letter of undertaking or bond and can claim refund of input tax credit with respect to such supplies.
Q.
Do I have to pay 12% service tax on my under construction duplex after 1st July?
A.No. You will be required to pay GST at 18% and not service tax at 18%.
Q.
What will be the impact of GST if I purchased a property under construction and did not submit service tax and VAT as of now?
A.You will be liable to pay GST on the total amount of your payment at the time of specified installments.
Q.
What will be the procedure for purchase return for both, the receiver and the supplier?
A.Supplier will issue a credit note for return of goods. The supplier shall also declare the details of such credit note in the return for the month during which such credit note has been issued.The receiver should mention the details of this credit note in their inward supply return.
Q.
Do we need to produce any document to the supplier in case of advance payment made?
A.A receipt voucher referred to in section 31 (3) (d) shall be issued evidencing receipt of advance payment
Q.
How to treat stock in transit for our own branch at the end of the year. Which AS/IAS is relevant?
A.Please Refer AS-2. Stock in transit should ideally be shown separately under Inventory in the Balance sheet.
Q.
How to valuate stock transfer?
A.Stock transfer to be taxed at transaction value. For this purpose, the amount mentioned on the invoice will be treated as transaction value.
Q.
Is director’s remuneration taxable under GST?
A.If the director is a wholetime director, then remuneration given to him is in nature of salary. If director is a non executive/independent director, then the remuneration paid to him would be taxable under GST
Q.
Are perquisites given to employees taxable under GST?
A.No. Salary and other incentives in relation to employer employee relationship outside the purview of GST. But where value of perquisites exceeds RS 50,000 in a financial year, perquisite will be chargeable to GST.
Q.
If I purchase good from an unregistered dealer and sell in another state to non fat firm. How will GST be applicable and how do I get ITC?
A.When you purchase from unregistered dealer, you are liable to pay GST on reverse charge.You can take input credit of this tax paid. If you sell in another state to another non registered person, you will collect IGST from the unregistered customer and pay to the government. The unregistered customer will not be able to take credit of this IGST paid to you and thus this becomes a cost to them.
Q.
How will I get credit for goods purchased pre GST i.e. closing stock on which VAT has already been paid? What will be impact post GST?
A.Yes. Credit will be available for closing stock on which VAT has been paid.Be sure to file GST TRAN-1 by 30th September.
Q.
What about RCM in GST?
A.Payment to unregistered vendors for goods or services in excess of Rs 5000 per day will attract payment of GST under RCM to the person making such payment.
Q.
Is there any time limit for assessee who have migrated to GST due to being existing assessee to cancel registration since turnover does not exceed 20 lacs? What happens to professionals who have seperate business account on which they are paying GST and they receive rent for residential property given on rent. Do they need to pay GST on rent income too?
A.Where application for cancellation made where person not liable to GST, provisional registration shall be deemed to not been issued. We recommend making application for surrender within 30th July, 2017. Will need to pay GST on rental income too if business and rental together exceeds 20 lakhs annually.
Q.
What is the GST rate for lift maintenance?
A.Lift maintenance will be taxed to GST at 18%.
Q.
My business has a turnover of Rs. 2.5 crore and the rent income is 5 Lac per annum. What will be the GST implications for the rent income?
A.GST will be applicable on rental income as normal since the total annual turnover in the business is more than 20 lakh rupees annually.
Q.
Will GST be applicable during transfer of manufactured goods from the manufacturing plant to its store house located in a different state? How to get excise modvat in case of HSD, which will continue with excise and Sales Tax/ Vat after July 1?
A.Yes GST will be applicable on transfer of manufactured goods from the manufacturing plant to store house located in a different state. No cenvat/modvat etc under GST regime for High Speed Diesel.
Q.
At present the work for Sewerage Treatment Plant Construction is exempted from service tax. How much will it be under GST?
A.18%.
Q.
What is the input credit scheme for real estate please?
A.Assuming real estate means construction. Under GST, input credit for inputs such as steel and cement will be allowed in full. No refund is allowed for overflow of credit.
Q.
What will be the transaction value and the documents to accompany in case of a inter state branch transfer of stock?
A.Tax invoice will need to be issued for inter state branch transfer of stock. For such transfers, any value declared in the invoice will be treated as transaction value.
Q.
If I have a head office and a branch office in one city and sales are affected at both places, will I be required to give E Bill each time goods are sent to the branch or vice versa? How should the billing system be?
A.E Bill still in draft stage. There isn’t enough clarity to suggest whether intra-state transfers will be covered. However, as per current reading, it mentions that any transfer of goods not amounting to supply (which would include intra-city branch transfers) are covered.However, would not advice any policy formation based on current availability of information
Q.
If a registered person buys goods from composite dealer, does he have to pay tax under reverse charge mechanism?
A.No. A composite dealer is a registered dealer. Reverse charge only required when payment being made to unregistered vendor.
Q.
I am a small weaver having 4 powerlooms producing polyester sarees at times use pure silk yarn. Interstate sales are rare happen. Do I need to get registered under GST? How to carry on my small business without any hassles? What are my limitations with respect to procuring raw materials to weave sarees and what are my limitations with respect to the turnover annually?
A.If your annual aggregate sales exceeds 20 lakhs then would require registration. Also, If you are weaving fabric from yarn, you would be paying 18% GST on polyester Yarn and 5% on silk yarn. If you do not take registration, you will not be able to take credit of this GST and pass on the credit to your customers. I would encourage you to take GST registration.
Q.
Under job work what is the procedure/ documents required in case principal want to send processed material from Job worker 1 to Job worker 2 without bringing material to his place?
A.The Job Worker must be registered. And must use a transfer challan to effect such transfers.
Q.
Medicines are made in excise free zone and it is very difficult for us to segrigate excise free and exicseable drugs while taking 40% input rebate for CGST which is 6% on medicine. As wholesalers, can we get SENVAT for non exicseable or exicseable both in CGST?
A.Take CENVAT credit only for exciseable goods.
Q.
Currently we are using E-Sugam for the shipment of materials. From July 1st how do we ship the materials.
A.You can use E-Sugam in Karnataka just as you are using until and unless the E-Way bills come into force. The E-way bill is modelled over the E-Sugam structure, so you will not find many differences afterwards.
Q.
In import bill have a registered office in Maharashtra and material comes to its plant in Gujarat having bill of entry of Gujarat address.What is the treatment in GST for above transaction?
A.Input Credit for the material will be available for Gujarat registered address/unit.
Q.
What will be the implications of GST in case goods are sent to customer for use on demo basis and billing is done on satisfaction of utility by the customer which may range from 6 to 8 months?
A.Tax invoice need not be raised at the time of removal. GST provides a time limit of 6 months from the date of removal during which the goods will not be treated as supplied. Where no confirmation is received within such period, a tax invoice should be issued on the day immediately succeeding the 6 month period.
Q.
I wish to venture in poultry farming in kerala. What will be the likely post GST scenario in this state? It is heard that local farmers fear Tamil Nadu will dump chicken here at very low prices.
A.Yes that is correct. Price of chicken is very low at Tamil Nadu. They are being sourced to Kerala from Tamil Nadu. Currently chicken is exempted under GST.
Q.
In case of sale of residential apartments, can we bifurcate consideration between land & construction and charge GST @18% only on construction portion under works contract?
A.Yes. If values of land and construction are explicitly identified through separate agreements, The GST rate applicable could be 18% on construction portion
Q.
Whether a person registered under GST law due to section 24 of CGST Act i.e. mandatory registration in some cases, is required to charge GST from day 1 itself without any threshold limit?
A.Yes. Tax to be charged as soon as registration is obtained.
Q.
What would be the implications of GST on trading of fabric?
A.Earlier trading of fabric was exempt. Now will be chargeable to tax at 5%. Expect fabric trading industry to become a lot more organised going forward.
Q.
Will the prices of cars(hatchback segment) fall or rise?
A.Prices will fall.
Q.
Is branded atta taxable under GST? If yes, what is the rate?
A.Yes branded atta is taxable under GST. However it will only be taxable at 5% if the brand name or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999.
Q.
Will there be an impact on logistics after GST?
A.Logistics to be one of the biggest beneficiaries under GST. Removal of state check points would lead to much more efficient movement of goods- reducing costs and increasing turnaround time.
Q.
What will be the impact of input credit for goods purchased in June and sold in July?.Will we get tax credit in July for the Excise and CST paid?
A.Will get full credit of excise paid provided documentary proof exists. No CST will be allowed as credit.
Q.
Will the e-way paid and to be paid be the same?
A.Too early to comment. Would need to wait for the final fine print to comment.
Q.
Is it wise to buy a car worth Rs. 50 lac before or after GST is applicable?
A.Mostly prices have come down because of GST. But some models of some car makers have increased pricing.
Q.
We are importers but not registered as FSD and SSD. We have BOE and invoice for all imports made and also stock in respect of said imports are with us. Is our company entitled to CVD and SAD paid on stock? If yes, both CVD and SAD credit shall fall under CGST credit or SAD portion is to be taken as SGST credit?
A.Will be allowed to take credit of CVD and SAD. Both would fall under CGST.
Q.
How can input credit liability be availed after June 30?
A.Need to have a tax invoice among other conditions. Will need to ensure information given under GSTR 2
Q.
Post GST’s implementation, will gold prices increase or decrease?
A.Price of gold has slightly dropped post GST but not according to the international standards.
Q.
Should IGST be charged on sales by a supplier of goods to SEZ units in other states?
A.Will need to charge IGST. Can claim refund afterwards.
Q.
If we are purchase goods from another state and sell it intrastate, can we opt for composition scheme under GST?
A.Yes. Under composition scheme you can purchase inter-state as long as you are selling within your state.
Q.
What would be the effect of GST on handicrafts? And who will borne the tax whether it will be producer, consumer or small worker?
A.Prices of handicrafts will likely rise under GST. The tax burden depends upon the tax structure and price of individual goods to that of the final product. Being indirect tax, it would eventually be passed on to the consumer.
Q.
How will GST affect my travel business with 2 taxis and turnover of 10-15 lakhs in a year?
A.You will not require GST registration as your annual turnover is less than 20 lakhs. However, recommend you to take registration if you purchase a new car/taxi as you would be eligible to take credit for the GST paid on such car/taxi.
Q.
What GST rate will be applicable on complete solar power plant (rooftop) as the input materials are having different GST rates.
A.All equipment regarding solar power plant will incur a GST rate of 5%
Q.
Will small traders with turnover between Rs 15-20 Lac see any exemptions under GST?
A.The threshold limit is not expected to be reduced anytime soon.
Q.
How is it possible to clear the stock and buy fresh stock in July?
A.By selling as much stock in June as possible and then making fresh purchases under GST regime (preferably after obtaining a registration number).
Q.
How to maintain record in manufacturing unit in st GST system?
A.Maintain records in a computerised accounting system. It is important to classify raw materials and finished goods into HSN codes and applicable GST rates and then set up the system to be ready for GST. maintain records/ Register of Goods Produced, Purchase Register, sales register, stock register, input tax credit availed, output tax liability, output tax paid.
Q.
What is the GST rate for knitted grey fabric?
A.Fabric will be taxed at 5%.
Q.
If cloth retailers are getting 60% input credit on unsold stock after implementation of GST, why are they providing huge discount on their products? Why they are concerned that the remaining 40% input has credit, can they not increase the cost of their product as it is indirect tax?
A.They can but customers might not want to buy increased price on the same product that will be at lesser price with respect to new stock that will be sold from 1st July. To remain competitive and prevent losses, cloth retailers want to clear their stock as much as possible.
Q.
Why is the market de-stocking?
A.Due to confusion over rates, input credit mechanism on existing stock and GST applicability, businesses to be on the safe side, are trying to minimize inventory and de-stock as much as possible.
Q.
Is it possible to download offline utility tool without provisional ID and password?
A.You can download the excel offline utility tool from gst.gov.in without provisional id and password.
Q.
What happens when IGST is wrongly paid by supplier and letter it is identified as same in intra-state supply, does the recipient need to reverse credit of IGST ?
A.If the incidence of tax has been passed on to the recipient, the recipient need not reverse credit of IGST.
Q.
Can a dealer buying goods for domestic Indian market sell to a merchant exporter and claim refund of 28% GST paid?
A.Supplying to an exporter will attract same tax of GST as it would to other domestic suppliers. The dealer will have to charge GST as per the slab of his products. He can claim refund only if his input credit is more than output tax liability.
Q.
How will the export process be under GST?
A.Exporters have the option of clearing goods under bond without payment of GST and taking refund of GST on inputs paid.
Q.
What is the GST rate for wheat products?
A.Wheat itself is exempted.Please follow products with HSN codes to specifically know the rate of the product.
Q.
Please comment on natural gas inclusion in GST.
A.Inclusion of natural gas would provide some relief to the Oil and Gas sector. Various inputs procured by Oil and gas companies would be subject to GST but supply of natural gas would be under old tax regime of VAT and excise. This would obviously lead to huge losses for these companies. Therefore, inclusion of natural gas would bring them relief.
Q.
As a small job worker of cutting metal from small machinery, will I be liable under GST?
A.Yes. As long as you are providing a taxable supply and your annual turnover is more than 20 lakh rupees, you would be liable to pay tax under GST- whether you are a job worker or a principal.
Q.
We have registration in two state one is in Gujarat and another one is in Delhi we have IGST credit of Rs. 95000 in Gujarat state and SGST & CGST liability of Rs. 70,000/- in Delhi state. Can IGST credit of Gujarat be utilized with SGST & CGST liability of Delhi?
A.In this case, registration in Delhi and Gujarat will be treated as separate persons. IGST of one person (Gujarat) cannot be adjusted with that of another person (Delhi). Depending on your situation, can consider setting up Input service distributor.
Q.
In a service based industry, we provide services to sellers who want to sell their products online. Currently we are only charging service tax. What will be the scenario henceforth?
A.Now GST will be charged at 18% on same services with full input tax credit.
Q.
Will the price for televisions, ACs, refrigerators etc. increase or decrease post June 30th?
A.Mostly prices will come down. However, can be increased by some brands on some products. Mostly set to become cheaper.
Q.
What are the taxes applicable on job-work, raw material and job work cost in manufacturing industry?
A.There are no standard rates applicable on job work and raw material in the manufacturing industry.They are all industry based. However, whatever tax is paid, input credit would be available on them as they are related to business.
Q.
What will be the GST rate for C.I. casting mainhole cover?
A.18%. Refer Chapter 72.
Q.
Considering a product falls under the 18% slab. A manufacturer who has produced the product for Rs. 8000 + Rs. 2000 as his profit margin. He sells this product to B for Rs.10,000 within the same state, now B has to pay 9% CGST & 9% SGST on it, which amounts to Rs 1800. Now B sells the same product to C for Rs 15,000 who lives in another state. C has to pay IGST of 18% (Rs 2700), C now sells the product to the consumer D for Rs 30,000 who lives in the same state. For which D has to pay 9% CGST & 9% SGST i.e Rs 5400. How much tax will be collected by the 2 states government individually and how much tax will the centre govt. collect? What is the profit margin of B andC ? How much did B,C and D pay? What amount will they get back?
A.SGST goes to the State. Some portion of IGST will be shared with the state by the Centre. Profit margin for both B and C stays intact as GST is paid by their respective customers. All of them are responsible for paying to the govt GST on sale (either by way of actual cash or taking input tax credit).
Q.
Under the GST regime, for SEZ, registration is to be taken unit-wise or state-wise?
A.A person having SEZ can take registration for all his SEZ units together. No need to take unit wise registration.
Q.
It is suggested to break society charges to reimbursable expenses and charges on maintenance and services and when the latter exceeds Rs 5,000 per member per month to claim GST at 18%. Of course subject to Rs 20 lakhs total revenue. Your advise?
A.Its a contentious issue. Using a pure agent concept for society might not work as department might argue that reimbursable cost might need to be apportioned on each member unit.
Q.
For traders,stocks purchased with VAT, will they see a negative impact after GST? We have Monitors in hand for which we paid 5% VAT.
A.No negative impact. You get credit only for the tax paid before. GST does not discriminate between old stock and new.
Q.
What will be the GST rate for parboiled and dryer equipment?
A.18%. Refer HSN 8421.
Q.
I have a partnership firm. UPVAT has mistakenly issued me a GST provisional ID with my PAN number instead of the firm’s PAN number. I have informed local VAT team several times and am waiting for them to rectify this. The last date is almost here. Will I lose the migration? How will I be able to migrate and avail ITC etc.?
A.Not to worry. Migration should happen by default. If not, try to migrate in your name or take fresh registration. There is a relief period of 30 days till July 30th.
Q.
I have a small scale computer institute in partnership. How GST will effect me?
A.Computer training is chargeable to GST at the rate of 18% with full input tax credit. If your annual turnover is more than 20 lakh rupees, take registration under GST and charge GST.
Q.
As VRLA and lithium ion manufacturers fpr a telecom tower company, we offer a three year warranty. What would be the supply of goods for warranty replacement? If post July we supply goods for warranty what do have to do? If we supply the goods to an interstate branch for stock keeping and use the warranty material when required, what document does the branch need for transfer, if such branch is not registered under GST.
A.Price of Warranty product is included in the price of the main sale. Therefore, no additional GST on its supply. Supply to interstate branch would require a tax invoice. Would recommend to register it.
Q.
If a retailer who makes transactions for over 20 lac is not registered under GST as he directly seals the product and directs it to the customer, is it permissible under the GST regime?
A.All suppliers including a retailer will need to obtain GST registration number and pay tax under GST if his annual turnover is more than 20 lakhs- even if he making a sale to the final customer.
Q.
As a wholeseller of pharmaceuticals, will I get tax claim for my closing stock holding which I purchased 6 months back in VAT.
A.Yes you will get input tax credit benefit for your closing stock from 6 months back.
Q.
What will happen to the C Form pending for the last 2 years?
A.Are you submitting GST TRAN-1? Would advise you to take C forms from your parties within 30th September.
Q.
Purchase made from another state can be counted for composition scheme under GST, so all sales will be made local. What are your recommendations?
A.I did not understand your question. If you are under composition scheme you can purchase from outside the state. However, all the sales have to be local. If you are under such a model, you can consider the composition scheme.
Q.
From a textile business with sale of around Rs. 5 crore, is it necessary to register for GST or wait for the final declaration? How will it effect my business?
A.Register as soon as possible. You will be able to take and pass on credit to your clients.
Q.
Is Contribution on EPFO chargeble under GST? RTO Tax is subsumed with GST (Yes/NO)(Clarification raised on information printed on todays ET at Page No.18).
A.Contribution to EPFO not chargeable to tax under GST.RTO not subsumed under GST.
Q.
What will be the impact of GST on Toyota Innova Crysta?
A.Toyota has revised prices of its range in India post GST regime. The car-maker has reduced prices of its big cars by up to 13 percent. Prices of the new Innova Crysta have come down by Rs 98,500.
Q.
Ours is trading Company in Bengaluru. We want to make URD purchase from Visakhapatnam and want to sell to a Gujarat Customer. What is the limit for URD Purchase and how to make self purchase bill and dispatch to Gujarat customer from Visakhapatnam?
A.Every supplier making inter state supply will have to obtain GST registration. In your case, since your supplier is an unregistered supplier,he will not be able to make interstate supply from Visakhapatnam to Gujarat. The transporter will refuse to transport his goods.
Q.
We are computer monitor resellers who buy monitors at excise paid and vat invoices. We will have vat invoice only. For closing stock on 1 July how can we take credit of excise duty that is distributed, paid but not shown in invoice?
A.Can take credit upto 60% if GST is 18%or more or 40% if GST less than 18%.Must possess document of procurement of goods. must file GST TRAN-2 showing details of supplies of such goods.
Q.
Will GST bring in more tax compliance? What are the penalties for non GST compliance?
A.It will bring in much more tax compliance. the penalty will be 100% of the tax amount when the offender has evaded i.e., where there is a deliberate fraud. For other genuine errors, penalty is 10% of tax.
Q.
Will the newspaper bill of say Rs 700 per month of a business entity qualify for reverse charge?
A.Now, limit for tax on reverse charge for payment to unregistered vendor has increased to 5000 per day. Therefore, no reverse charge for expense of rs 700.
Q.
As a small time trader with turnover of 60/70lakh p.a.can I go in for composite scheme and what is the restriction of trading in this scheme?Can I buy and sell anywhere in India?
A.Under composition scheme, you cannot make inter state sales. Usually we recommend this scheme to retailers only and not wholesalers because you would need to pay GST on purchases and if you are under composition, then you will not be able to pass on tax credit to your customer. So your customer would prefer buying from somewhere else than from a composition trader as your product will be more expensive as tax on purchase becomes a cost now.
Q.
What about the manufacturing units that fall in Jammu and Kashmir as earlier we were given tax remitions under state tax laws?
A.No location based exemptions under GST anymore. However, Government is working on a refund mechanism in lieu of such exemptions
Q.
How will GST impact the gifts and handicrafts marketplace? What taxes will be levied on the online marketplace? What is the tax rate applicable on handmade and handicrafts products?
A.GST on handicrafts is 12%. Online marketplace will need to take registration compulsorily under GST and also collect tax at source.
Q.
We are pharma manufacturers. Retailers sell drugs inclusive of taxes and the MRP is printed on label. Present tax is Ed 2% and vat 5%. GST is 12%. Will retailers sell existing stock from July 1 on MRP+tax difference 12% – 7%?
A.No Retailers will have to charge full 12% GST and take credit of the VAT paid earlier.
Q.
What will be GST rate of textile testing equipments?
A.GST rate is 18%. Refer HSN 9024
Q.
Will GST have any effect on paint retail?
A.Paints industry is 75% organised. There is not much that companies will get in terms of market share boost. However, as with all industries, retailers that comply with GST and have infrastructure to handle GST will be able to grow their business.
Q.
What will be the tax rate for Paranda (made by cotton yarn) under the GST regime?
A.Tax rate for cotton yarn is 5%.
Q.
For Renting of commercial property is invoice to be raised in the address of Tenant in the state or their Head office in some other state? Is the tax part to be shown as SGST 9% and CGST9%?
A.Depending on who is the contract with for the renting of the commercial property. Whether it is with the Head office or the tenant in the same state? Yes, break up of tax invoice is to be shown as SGST 9% and CGST 9%.
Q.
What is the impact of GSt on an under construction flat?
A.The GST rate on under- construction real estate projects will be 18 %. The builders are expected to pass the benefits of full credit of inputs under the GST regime to the buyers of property by way of reduced prices/installments.
Q.
Will GST be applicable on online shopping? If yes, what is the tax rate applicable?
A.Yes. GST applicable on online shopping. Rate will depend on the product or service you are shopping online.
Q.
What will be the implications of GST on 100% EOU?
A.Right now, there is no exemption of GST on goods imported or procured from local sources by EOUs. However, it is expected that the position will be clear once the Foreign Trade Policy is announced and related exemption notifications are issued by the Revenue Department.
Q.
Is a hard copy of the invoice required for tax refund purposes?
A.No hard copy required. Application to be made electronically.
Q.
I am a transporter of goods by road; do I require any GST registration?
A.If the transporter is making inter-state supply or your aggregate annual turnover exceeds Rs. 20 lakhs.
Q.
What is the GST rate applicable on ready made garments?
A.5%, if sale value is up to 1000 rupees. 12%, if the sale value is more than 1000 rupees.
Q.
What is the GST rate for renting helicopters to client on an hourly basis?
A.18% with full input tax credit.
Q.
Whether we have to deal with one or more authorities?Where IGST is applicable?
A.Could be one for Centre and one for State but department administration structure is still very sketchy. IGST is applicable on interstate supply of goods and services.
Q.
How do I make an inventory of my stock? I have a very wide range of items in my shop?
A.Start with classification of your inventory under GST. When you make a list of different stock items, you must classify them as per chapter (2 digit)and heading (four digit) depending on whether your turnover is more than 1.5 crores and 5 crores respectively. Ensure that these HSN codes are tagged with the closing stock as on 30th june in your accounting software.
Q.
As a franchisee owner telecom operator what is my HSN code for 5 product like phone accessories, sim cards, recharges etc.?
A.For sim cards- HSN 8523 rate 18%. GST on recharge 18%.
Q.
What is the HSN CODE for Sewing Machine Needle Plate part?
A.12%. Please refer HSN code 8452.
Q.
Where are the nutraceuticals i.e., the health supplements or dietary supplements palced at ? The goverenment has come out with regulation on nutraceuticals on 24th November recognising it as an important, huge and a growing industry. How could the GST council miss such an important industry? If not specified in the notification everyone is assuming it to be put under 28% which is very high considering the fact they are more or less equivalent to a drug which attracts a tax slab of 12% under GST.
A.It is unfortunate that no clarity has been issued on get rates for nutraceuticals. For now, to be on the safe side, we need to charge 28% tax on it.
Q.
How the valuation and profits are to be added at each stage? What would be uniformity of prices in India. Will the same thing still be sold at different prices at different places in India depending upon the price of the seller?
A.You can sell at different prices around India. From GST perspective there is no requirement of selling at uniform rates in different geography. There is also no requirement of adding a fixed amount of profit under GST. You are free to add the value and profits you feel appropriate. The only restriction is that of profiteering which means you must not make a profit by virtue of a reduced rate of tax under GST.
Q.
How to withdraw my GST registration, since I fall below threshold limit.
A.You must file GST REG-16.
Q.
Will GST be charged on MRP or actual sale price in case of packed food in FMCG industry?
A.On actual sale price.
Q.
I have a commercial property on lease with rent of 1.21L PM, am I required to charge GST?
A.No need to charge GST as turnover lower than threshold limit of 20 lakhs annually
Q.
What is the percentage for CGST and SGST if Tax rate is 18%. Assuming no clear notification is received in this regard.
A.50% equal split between CGST and SGST.
Q.
ITC of exported goods/ service can be taken immediately when goods are exported under bond? Are separate records to be maintained for ITC eligible cases under Export?
A.Yes ITC can be taken immediately after exporting under bond.Yes separate records required to be maintained.
Q.
We have two manufacturing unit in one state for which we got a common GSTN. Is it valid or do we have to take separate registration number?
A.Yes, under GST only one registration is required in a state and thus, common GSTN is valid. However, in case of different business verticals a taxpayer may opt for separate registrations even in the same state
Q.
Consultant charges are less Rs.20.00 Lacs annually, but still GST Registration was persuaded by concerned officer of Service Tax authority. What should I do now? Cancellation of registration of GST or any other alternative?
A.Yes, the assessee can file an application for cancellation of registration. However, the assessee has a discretion to continue with the registration and undertake all the compliances under GST
Q.
How to file nil return in GSTR 1?
A.The return shall be filed with basic details and the figures etc. shall be NIL.
Q.
Can a merchant exporter buy goods from his supplier under bond or Letter of Undertaking without paying GST AND export the goods under the regime. What is the procees to obtain this bond and which dept. would issue the same?
A.No, the merchant exporter can procure the goods on payment of GST and avail credit of the same
Q.
What is the GST rate for HSN code 870830?
A.As per the GST Council meeting on 11.6.2017, the rate of tax on products having HSN 8708 has been reduced from 28% to 18%.
Q.
Sale of only residential plots, developed/undeveloped, does it attracts GST? If yes, what is the percentage?
A.In case of plot of land there is no GST required to be charged. In case of developed units no GST is required. In case of units under development their GST charged on sale of such units.
Q.
Is it necessary to get GST registration number for a free lance consultant in technical field with an annual turnover less than Rs. 10 Lakhs?
A.One has to take registration, if the turnover exceeds Rs. 20 Lacs. Since, the turnover is Rs. 10 Lacs there is no requirement to tale registration.
Q.
I run a company that makes handmade bags which consist of handicraft textile and rexine. What would be the GST rate?
A.This needs to be checked with HSN listing provided GST council.
Q.
When will the trans 1 form be available on the GST website?
A.There is no timeline give by the GST council as on date.
Q.
What is the GST rate applicable on repair of old furniture?
A.This needs to be checked with HSN listing provided GST council.
Q.
We give material for job working. What forms do we have to use while sending and receiving the materials?
A.The material can be sent on Job Work on the basis of delivery challan defined in the Invoice GST Rules.
Q.
What is the GST threshold for exporting textile products? Also can one separate the domestic and export top line to compute GST threshold?
A.The limit for registration is INR 20 lakh and a company cannot take separate registrations for same business within the same state.
Q.
Has there been any return or form specified for filing details as mentioned under Section 140(5) of CGST Act, 2017?
A.The returns mentioned under section 140 (5) shall be mentioned in Tran 1 form.
Q.
How to book/adjust ST or VAT on invoices issued before 30th Jun 2017 with old taxes but received in July 2017?ST & VAT rate will be different from GST. So what is to be done/accounted?
A.For Services- Mention the rule no, in case of services, if the invoice and payment is made before 30.6.2017, than no fresh invoice in GST need to be taken. However if the payment is also made after 30.6.2017, than you have to get the invoice revised under GST.For Goods- If invoices are received before 30th June and material is received in July then credit on such goods to be availed in old law.
Q.
Any (& how much) GST liability for an exempted turnover of Rs.14 lakhs + 8 lakhs of rental income on commercial property per year?
A.The GST liability arises, when the aggregate turnover exceeds RS. 20 Lacs.”Aggregate turnover” means the aggregate value of all taxable supplies including exempt supplies.So there will be GST liability on the taxable product/service. IN the present case rental from commercial property will be taxable under GST @ 18%.
Q.
With respect to DBK 1 declaration, if I am having FG Stock on 30.6.17 which I export on 03.7.17, what does declaration imply given that I no IGST or CGST is paid on that stock?
A.The clarity of this issue needs to be taken from Customs department
Q.
Liability under RCM for June 2017 paid on 5th July 2017 as service tax under existing provisions. How can CC be availed, when return has to go till 30th June only, as CC on RCM only post paying it?
A.The credit of Service tax paid under reverse can be carried forward I returns.
Q.
What is the process to get GST number?
A.Process for GST registration-1. Go to http://www.gst.gov.in2. Select register now under the tab- Tax payer normal3. For new registration- Part A will open- fill the details4. Mobile and email OTP has to be entered.5. After entering OTP, click on proceed- A TRN will be generated which will be used to fill part B of the registration for with 15 Days6. For the companies and LLP registration the digital signature of authorized signatory is mandatory to be attached in Part B7. After successful application, a Application reference no will be generated- on the basis of which a GSTIN will be generated within 3 Days.
Q.
What is the tax rate of loading, unloading and transportation charges?
A.If goods are prime supply-In case the loading transportation, loading/unloading charges are charged in the invoice for the goods i.e. prime supply, then the supply will be treated as composite supply and GST on freight will be charged at the rates applicable to the product.
Q.
Whether an exporter of second hand machines need to pay GST while buying on purchase value and also deposit GST on his added margin while exporting?
A.In case of purchases made for export, the exporter has to pay GST charged by vendor on such invoice.While exporting the same goods, the exporter will have the option of supplying material without charging duty under Bond or LUT, or by charging duty under rebate claim.
Q.
We get granite material from Karnataka state and sell them in Delhi, Haryana. What will be the rate of GST and how will it be charged in the invoice? Is there any specific invoice format to follow?
A.This needs to be checked with HSN listing provided GST council.
Q.
We run a startup that offers online consultations for which we collect a fee from subscribing users online. Our revenues are still below the 20 lakhs bracket. Are we required to register for GST?
A.Registration need to be taken when the limit exceeds Rs. 20 Lacs. So, if the limit is below 20 Lac there is no need for taking the registration. The invoices raised between the date of liability to charge tax and the actual date of getting the registration will be revised as per the GST Invoicing rules.
Q.
Does a service recipient have to pay tax on RCM even if the service provider comes under the exempt category i.e., aggregate turnover is less than Rs. 20 Lakhs.
A.Technically reverse charge shall be applicable on such product, but since the product is in nature of exempt category, hence there is no tax to be deposited under reverse charge.
Q.
Company is operating a furniture factory and showroom. Factory was registered under excise, showroom wasn’t. The company used to pay ED on 75 percent of retail price at the time of dispatch from factory to showroom. Remaining ED was paid through supplementary excise invoice at the time of final sale from show room. Can and how company claim credit of 75 percent duty paid on stock lying in showroom on 30th June? Can Credit Transfer Document be used for different units of same entity?
A.If the duty of on 75% is paid as per MRP Rules then there is no need to raise the supplementary Invoice.The Excise credit of 75% (against the stock lying on 30.6.2017) can be carried forward on the basis of excisable invoice issued by factory to Showroom.
Q.
Is there any move to prove abatement for land cost in under construction property. GST is causing huge increase in tax on flats. The input tax credit is only on the tax paid for the construction cost. Also, land cost is newly attracting GST. How industry is seeing this change?
A.The GST rate prescribed for under construction property is 18% with a 33%Â abatement (presumably for land); hence the effective rate is 12%. Since the builder will now be eligible for a credit of the construction material, there should not be any increase in construction cost, hence in the cost of the flats.
Q.
What kind of expenses will be covered under RCM and what is the limit?
A.The list of expenses where reverse charge is applicable have been prescribed by notification number 13/2017-Central Tax(Rate) dated 28th June 2017
Q.
How is GST going to affect the market?
A.We presume you are referring to the stock market. GST would be good for the stock market as a whole as it would lead to the creation of a cleaner economy with a country wide potential for sale of goods and services without any state barriers.Â
Q.
How is the refund amount going to be returned to the exporters?
A.There entire process for refund is prescribed under Section 54 to 58 of the CGST Act, please refer to the same.Â
Q.
We have partnership firm providing recruitment/Manpower services to MNC companies. Under Service tax Notification( Notification No. 30/2012-Service Tax and subsequent revision), we fall under RCM and service tax (100%) will be paid by service receivers. We do not see inclusion of our services in GST RCM list of services. So do we fall in RCM under GST?
A.In GST, manpower services have not been included in the list of services for which the reverse charge mechanism is prescribed.Â
Q.
How to take ITC of closing stock as on 30-June_2017 which VAT is paid, but excise isn’t?
A.It depends if, the products excise exempt or are they excisable but you donât have the documents.Â
Q.
While buying new silver articles from wholesalers I have to pay 3% GST on cost of silver and again pay 5% GST on the making charges which comes under services. But while selling the same should I collect the GST on making charges at 5% or just collect 3% on total invoice value?
A.The tax rate is 3% on the value of the article sold and we are not clear on why you are segregating the making charges and the cost of silver.Â
Q.
What is the GST rate for Pollution Control Equipment?
A.The specific description/classification of the goods in question has not been mentioned. If they do not figure in any of the other schedules of notification 1/2017-Central Tax (Rates) dated June, 28, 2017, then by virtue of the entry No. 453 of Schedule III, it will attract tax at 18% (CGST 9% + SGST 9).
Q.
Is GST applicable on Residential Property?
A.Earlier residential property was not liable for Service Tax. Construction services relating to residential complex are taxable under GST while those for a single residential unit are not. There is no major change in the taxability from the service tax regime.Â
Q.
If the turnover is below 20 lacs, is it still necessary to register under GST if the goods are purchased from a whole-seller?
A.No, it is not necessary to register under GST if the goods are purchased from a whole-seller.
Q.
Under GST transition will the cenvat credit of krishi kalyan cess be carried forward or not?
A.No, cenvat credit of krishi kalyan cess will not be carried forward.
Q.
Is HSN Code mandatory for sale to customer who is not availing GST credit?
A.HSN code is required if the supplierâs turnover in the previous year exceeded Rs. 1.5 crores. Further, if the turnover was between 1.5 crores and 5 crores it is to be mentioned at two-digit level and above 5 crores at the four-digit level.Â
Q.
Is it necessary for a small Mutual Fund advisor whose earning is below 5 lakh per annum to register under GST?
A.Suppliers of goods/services with turnover less than 20 lakh (10 lakh in special category states) do not require registration under GST.Â
Q.
What is the GST rate on expeller extracted cotton seed oil cake? As a cotton ginning and oil mill owner, I purchase raw cotton @5% GST, process the raw cotton into ginned cotton and cotton seed, ginned cotton sell at 5% gst, further crush cotton seed into cotton seed oil cake and cotton seed oil, the oil is taxed at 5% GST but cotton seed oil cake is tax exempted, so when I sell the cotton seed oil cake to a registered dealer do i have to bear the reverse charge? If yes can I claim input credit on the reverse charge?
A.GST rate on cotton seed oil cake and cotton seed oil is 5%. Both shall be taxable normally under forward charge, with full input credit available.
Q.
Goods purchased mostly from out of U.P(Delhi and Mumbai) and sold in U.P. itself while the business is set up in Lucknow. How can i clam for Input credit?
A.In respect of inputs purchased from outside U.P., the businessman would have paid IGST, while his output liability shall be CGST and SGST. Input credit of IGST may be set off against output liability of CGST and SGST in that order. Â
Q.
What is rate for works contract? What is calculation for payments are received after 1/7/16 when materials was purchased before 30/6/17?
A.GST rate for works contract is 18% with full ITC. Payments received after 1 July shall attract GST and the works contractor shall be eligible to carry forward the credit of inputs held in stock on 1 July. However, where the invoice evidencing payment of duty on purchase of inputs is not available, input credit shall be restricted to 60% of the output liability of CGST.
Q.
Is cess for green leaf of tea industries included in GST?
A.Cess on tea has been abolished w.e.f 1 July, 2017. Hence tea shall only attract GST @ 5%. Â
Q.
Will tax be levied on a patient who are provided with medicine with medical treatment?
A.Life-saving medicines and health care services are nil rated under GST.
Q.
What is the impact on auto ancillaries?
A.Auto parts are taxable at 28% under GST.
Q.
Should a retail businessman having turnover of around 50 Lakh and rent income of Rs. 60,000 annually go for composition scheme?
A.Yes, it is advisable to go for composition scheme given that the aggregate turnover did not exceed Rs 75 lacs in the preceding financial year.
Q.
I am an automobile dealer, we receive credit notes towards performance incentives. Will it attract GST? Earlier we use to receive credit notes without service tax.
A.Performance incentive in the form of post supply discount shall not attract GST provided that the incentive is given as per the agreement entered prior to the supply, discount can be linked to the sale invoices and input tax credit attributable to the discount has been reversed by the dealer.
Q.
Is renting of immovable property a taxable service? If yes, at what rate?
A.Renting of immovable property is covered under Heading 9972 (Real Estate Services) taxable at 18%. Services by way of renting of residential dwelling for use as a residence are exempt under GST.
Q.
Are EOU units required to de-bond from 1st July?
A.EOUs shall be required to discharge IGST on imports, BCD shall continue to be exempted. We understand that there is no change in bonding requirements for EOUs.
Q.
Is the list of SAC code with corresponding tax rate available?
A.SAC has been replaced with new scheme of classification of services wherein Chapter, Section and Headings have been specified in Notification No. 11/2017-Central Tax(Rate) along with Central tax rates.
Q.
What is the GST rate applicable for service of dry ice cleaning (as of now we are in service tax maintenance or repair service/scientific & technical services/erection, commissioning & installation)? What is the HSN code?
A.In our view, dry ice cleaning services will get covered under heading 99853 (Cleaning services) which are taxable at 18% under GST.
Q.
What will be the GST rate for Electrical Job works?
A.18% with full input tax credit.
Q.
What is slab of GST rate for services tax?
A.Assuming you mean GST rate for services. It is 18% with full input tax credit for all services other than those for which tax is specifically prescribed.
Q.
What is the tax rate on polyres in Indian god statues?
A.28%. Refer 9602.
Q.
Our company gives fixed daily allowance to employees for out-station travelling and stays for official work. Do we need to pay GST? Will we get ITC?
A.If the fixed daily allowance is mentioned in the CTC, no implication of GST. Even if not mentioned, it is in relation to employment services by an employee to employer and should not be covered under ambit of GST. Will get ITC only when tax invoice is received in the name of the employer.
Q.
As a jewellery trader opting for composition scheme, what will be my SGST and CGST amount on sale of Rs.40 lacs?
A.GST for a trader under composition scheme shall be 0.5% under SGST and 0.5% under CGST. Therefore, your SGST and CGST amount shall be Rs. 20,000 each.
Q.
How many series of invoices are required by a manufacturing company that is located in different areas in a single state?
A.No such prescription in the GST law or rules. Invoice series could be specific to each location in the single state where there is establishment.
Q.
What will happen with stock as on 30-06-2017? We are in the textile segment which has tax exempted goods.
A.There will be no input tax credit available for you.
Q.
I purchased a duplex, should I register it now or after July 1? Will taxes increase or decrease after GST?
A.GST is not applicable on registry of flat which is still governed by stamp duty.
Q.
What is the alternative for excise notification no 23/2003 in GST? do SEZ provisions apply for 100% EOU as well?
A.Additional customs duty shall be subsumed under GST and IGST shall now be charged instead. No SEZ provisions do not apply to 100% EOU under GST.
Q.
How is GST applicable to job work charges where all raw material is supplied free of cost by the customer and the job worker is registered under GST?
A.Job work charges are chargeable to GST like any other taxable service because there is value addition to the goods sent by principal by the job worker like any other trade. A registered job worker will have to pay GST only when his processing charges exceed rupees 20 lakhs annually.
Q.
How to evaluate closing stock on 30.06.17 on GST transition and what input reversal will be given by the government?
A.A good place to start is breakup of stock based on whether they are taxable or exempt. Where taxable, we recommend segregating by HSN number. You can also further classify it based on whether it is one year old or not. After that you must figure out the tax credit you can claim on them and file GST TRAN-1.
Q.
The word branding with respect to GST is still not clear. Can you please elaborate?
A.Would depend in which context âbrandingâ is being asked. However, typically a brand or trademark that is registered under relevant laws is recognized under indirect tax laws.
Q.
What will be the effect of GST on stock lying for more than one year?
A.Any CENVAT can only be carried forward only where invoice of the stock is dated ON OR AFTER 1.7.2016. If your stateâs VAT Act allows credit to be carried forward for more than a year, you can carry it forward under GST till it is admissible under your stateâs vat laws.
Q.
We are an FMCG Company,giving our distributors 5+1 Scheme i.e. 1 unit free on purchase of 5 unit. Will GST be levied on the one free unit? In case we give free samples, what taxes are to be paid, if any. We sell our products online at Amazon, do we have to upload all the invoice-wise details of within state & inter state invoices while filing GST returns?
A.Where free promotional item given with taxable product, then consideration will be value charged from the customer. Therefore, no additional GST on one free unit. No GST charged on free samples but no input credit allowed for such samples. depends on whether B2B or B2C plus whether intra-state or inter-state supplies.For B2B supplies, all invoices, whether intra-state or inter-state supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.In B2C supplies, uploading in general may not be required as the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 lacs in inter-state B2C supplies will have to be uploaded.
Q.
Flats booked under the existing tax laws. Installments paid with Service tax but possession will be handed over after 1st July 2017. Should we pay GST on installments already paid under existing tax regime?
A.No GST would only be applicable on installments paid from 1st July,2017. You do not need to pay GST already paid under old tax regime.
Q.
What will be the GST rate applicable on sand?
A.GST rate for all kinds of sand is under chapter 25 and is taxed at 5%.
Q.
What will be the impact on excise free zones in Uttrakhand. Will the companies get any benefit?
A.The government is looking to clear a reimbursement scheme for industries that have lost area wise exemption. We look forward to hearing more about it in the coming weeks.
Q.
What will be the GST rate for blended yarn (polyester and cotton blend in the ratio 65:35)? Does it come under chapter 52 or chapter 55?
A.The classification of Blended yarn would be derived from its dominant blend. In this case it being polyester, GST rate would be according to chapter 55.
Q.
What should be done about the payments that customers have not sent till date and are not agreeing to send payments by July 1?
A.There is no problem in receiving old payments under GST regime.
Q.
Will a supermarket have to issue Bill of Sale and Tax invoice for exempt goods and for taxable goods respectively?
A.Yes, tax invoice to be issued for supply of taxable goods and Bill of supply to be issued for exempt goods. However, not mandatory to issue bill of supply on goods valued at less than 200 rupees.
Q.
We have adventure activity campsite, what is the percentage of GST applicable for us? We get amendment on service tax, is the same applicable on GST?
A.It depends on whether your service would fall under tour operatorâs service. If yes, then 5%. Else under residuary provisions its 18% with full input tax credit.
Q.
As a supplier of spare parts in the auto industry for heavy trucks. What changes should I expect once GST is implemented?
A.GST rate has been increased from 12% to 28% for spare parts industry. However, can expect full offset of input credit on India wide supply. Can expect more suppliers expanding their operations in different states.
Q.
How does a registered dealer generate e-way bill for supplies made from July 1st for Inter State sale of Rs 100,000/-Is it to be generated from vat portal of respective states using the Tin No as was being done till now.
A.E-way bill has been deferred by at least 3 months by the government.
Q.
Upon new GST, how to calculate the total import duty?
A.Basic customs duty + IGST. where IGST is calculated on (value of imported goods +Basic customs duty)
Q.
What will be the percentage of GST for a stand-alone air conditioned Ice Cream Parlour with a micro production unit above a turnover of 20 Lakhs?
A.18%. please refer HSN 2105.
Q.
I purchase interstate goods from Maharashtra and sell in Bihar. The total annual turnover below two lacs INR. Do I have to get GSTN?
A.No need to take GST registration assuming you are not making interstate sale.
Q.
What is the GST rate for edible oil and blended edible oil?
A.5%. Please refer chapter 15.
Q.
What is the GST rate applicable on our orthopedic appliances like cervical collars spinal braces, before & after operation?
A.12%. Refer HSN 9021.
Q.
Interior business’ GST is finalized at 28% or 18%?
A.Services of an interior will be taxed at 18% under GST.
Q.
What is the GST rate for fabrics?
A.Rate of fabric is 5% for natural as well as man-made fabric.
Q.
Will GST have an impact on bank transactions and Savings Account? In what way?
A.Banking services to be charged at 18% now as opposed to 15% earlier under Service tax.
Q.
We (one of Uttarakhand govt corporation) have hired vehicles for official use by tender process, in which the vehicle is provided by contractor and fuel is purchased by deptt. What will be rate of GST if fuel is also supplied by contractor and the rate if it is supplied by deptt?
A.GST on renting of motorcab is 5% without any input tax credit where fuel is borne by service provider (being contractor is your case). If the fuel is borne by dept then GST rate is 18%.
Q.
I have a wall paper printing unit by purchasing blank paper rolls of different qualities and textures from whole sellers What percentage of tax would I have to quote in invoices to my clients who give order?
A.28%. Please refer HSN 4814.
Q.
We are civil construction contractor workers for big builders, in new regime how to bill them, earlier we billed them 70:30% vat and service tax.
A.Now works contract for immovable property will be treated as a supply of service only. GST rate at 18%.
Q.
I have commercial property in Indore on my parents’ name. It is rented out to a nationalized bank from which both of them receive rent up to Rs. 9 lac annually. They were under the service tax exemption limit of Rs. 10 lac, so there was no need for registration. But since it is an inter-state transaction, are they liable to pay service tax post GST or to opt for GSTN?
A.Service tax has been abolished with effect from 1st July,2017. Need to opt of GSTN.
Q.
I am running an ad agency with turnover of around 12 -13 lakhs. The publishers charge 5% GST on every transaction. How to charge the same to my client if I won’t register for GST? Can I register my firm as a proprietor having individual PAN? If I register for GST is it required to charge for GST till my turnover reaches 20 lakhs? If I need not have charge for GST from my client till my annual turnover reaches 20 lakhs, how soon can I get back my GST collection made by the publication house?
A.You cannot charge GST to your client unless you register under GST. however, you can always add the GST as a cost and increase the value in your bill as increase in cost.You can register your firm as a proprietor. no requirement to charge GST till you reach 20 lakhs.
Q.
Can a Housing Society ( RWA) registered under Society Act collect GST from its members who are paying maintenance charges less than Rs. 5000/- per month?
A.No. because the tax is applicable on flat owners who pay a maintenance charge of above Rs 5,000, excluding property tax, stamp duty, and electricity and water charges
Q.
In which section is it mentioned that delivery challan is to be issued for stock transfer – intra state. Why can’t we raise a tax invoice show tax and take credit of the same?
A.Because all units of a single entity within one state is under one common registration. Therefore, delivery challan needed as no tax invoice is issued. refer rule 10 of Invoice rules.
Q.
When the contract work is completed before 30th June, billing has to be cleared from government departments. What is the tax going to be deducted from source? Earlier it was 4%.
A.Under GST, Tax deducted at source is 1%.
Q.
How will GST affect commercial vehicle owners (trucks) whose vehicles are attached with big logistics players like Blue Dart and Mahindra Logistics.They are in contract with other companies for goods transportation service. As Blue Dart etc do not have their own vehicles, they source from us, but the consignment note/LR/docket are theirs.So how will we i.e 4PL be affected.
A.Services by way of giving on hire to a goods transport agency means of transportation of goods is exempt under GST. Else GST of 18% on hire charges.
Q.
If a manufacturer is opting for compounding scheme, how will he consider existing closing stock, will he be liable to pay any taxes on it?
A.When you had purchased goods as a manufacturer you must already had paid tax on them under existing law ,so you need not pay tax again on stock of it,it doesn’t matter you opt for composition or normal scheme. However, in case of opting composition scheme under GST you will not be allowed to take input credit on that closing stock.
Q.
What will be the tax treatment of by-products of liquor?
A.More clarity awaited on it. However, supply of all by-products are taxed under GST as a separate good. Therefore, by-product of liquor should be charged to GST, unless otherwise stated in law.
Q.
We are plastic dies & mould manufacturers. In dies manufacturing, generally material cost is 30% of the Product while 70% is process cost so do we have to calculate GST? Do we have to pay GST on the 70%?
A.You will have to pay GST on 100% of the transaction value of plastic dies and moulds. you can take input tax credit directly on the GST on material cost (30%) and on direct and indirect costs associated with the process (70% part).
Q.
As a co-operative, our previous year turnover was 15,00,000 INR. As presumptive tax dealer and as a service provider, our turnover was 8,00,000 INR. We didn’t take service tax registration or pay it. What changes can we expect under the GST regime?
A.Under GST, a person includes âa co-operative society registered under lawâ. Therefore, all provisions of GST as are applicable to regular suppliers will also remain the same for co-operative societies. If the aggregate annual turnover is less than 20 lakhs, no need to pay GST.
Q.
As a small industry manufacturer of muster oil at home, my daily sales amount to approximately Rs. 5000. Do I have to register under GST?
A.Unless you are making interstate sales or through e-commerce, you do not need to register under GST.
Q.
Does a Government entity like an engineer office, where payment was made to the contractor and VAT was deducted earlier from their bill, require to enroll with GST?
A.Where the government is providing service to a business entity, it would be liable to pay GST. In such cases, mandatory registration under GST by the government entity.
Q.
Will there be a major impact of GST on stock trading?
A.Stock trading is out of purview of GST.
Q.
Books are covered under chapter 49, with 5% tax with news papers. What HSN code should be used here?
A.Supply of Printed books(4901) and newspapers(4902) are both nil taxed under GST.
Q.
Earlier my firm registered in VAT as dealer, so I couldn’t do service job. Now I have GST from my VAT no. Can I do service job as well?
A.Yes. GST is a common registration for providing both goods and services. However, you must amend your registration to add another business vertical- that of a service in addition to dealership of goods.
Q.
What is the impact of GST in transportation and in e-commerce sector?
A.Transportation is set to reduce in terms of cost and time because of abolishment of state check points. e-commerce is experiencing strain under GST because of additional compliance formalities such as tax collection at source and mandatory registration.
Q.
Will be any effect on online medicines?
A.No particular specific regulations for online medicines under GST. Regular regulations as applicable to e-commerce will apply to online medicines.
Q.
I’m a transporter; if party consignee has GSTN and bill amount is more than Rs. 750, consignee is liable to pay GST or we as a transporter?
A.Consignee liable to pay in full under reverse charge.
Q.
What is the GST rate applicable on bed sheets?
A.Refer chapter 63. Bed linen more than sale value of 1000 rupees is 12%, less than sale value of 1000 rupees is 5%.
Q.
How to take input credit of unsold flats by builder in under construction project?
A.File TRAN-1 form by 30th September,2017.
Q.
What is the GST rate applicable on paint and hardware goods?
A.GST rate on paints is 28% and that of hardware like tubes, pipes, hoses etc will attract a slab of 18%
Q.
What is the tax percentage for aluminium materials purchase and sales?
A.You haven’t mentioned which aluminium product. Please refer chapter 76 for rate of your exact product.
Q.
We sent our material for plating job work outside. What is the applicable GST rate?
A.The exact nature of job work unclear from your question. However, GST on job work is, for most part, at 18%.
Q.
Do we have to pay GST on transport of goods?
A.Yes GST applicable on transport of goods. To be paid under Reverse Charge if recipient of service is registered under GST, among other things.
Q.
As a small scale service provider from Rajasthan, there is only one invoice raised by me of Rs. 10000 per month for service provided by me to a firm with registered address in Gurgaon. GST requires compulsory registration for inter state services provided. Should i get registered in GST or escape the liablity by showing that the service provided is in Rajasthan only but the receiver has registered address in Gurgaon?
A.You must register under GST since you are clearly providing inter state supply of service.
Q.
Will GST impact the existing goods of a retail ahop?
A.Post GST implementation, these retailers will not be able to evade tax as the complete value chain will be tracked online.
Q.
If we make gold jewellery, do we have to pay GST 3+18% on it? What is the split of that?
A.GST on jewellery is 3%. And GST on making charges is 5%. Earlier the rate on making charges was fixed at 18% (hence the 3%+18%). Now been revised to 5%.
Q.
As a manufacturer of hydraulic door closer and cam for floor spring, what will be the tax for me to buy the raw material and for finished product?
A.28%. Please refer 8302.
Q.
What about Export Invoices raised on 30 June 2017 and shipping bills not filed at Customs. How much time do we have to file shipping bills for pre GST invoice?
A.No law mandate for amount of time to file pre GST invoice shipping bills. My advice is to file it within 30th July.
Q.
How will indirect export against H form be treated under GST?
A.IGST will be applicable throughout the supply chain as normally applicable. The exporter has the option of taking refund of the IGST paid or clear without paying tax under an undertaking.
Q.
The tax rate for detergent cake is under Chapter 3401@ 18 % and detergent powder is Ch 3402 @ 28 % same end use of the product and similar ingredients. Why is it so?
A.Its because detergent cake is a mass market item whereas detergent powder is a more upscale product.
Q.
GST rate applicable on PCC Pole is?
A.Since PCC Poles are made of cement, hence they will attract 28% of tax under GST.
Q.
Our company’s turnover is below the taxable limit, however we have registered under GST. We would like to surrender our provisional ID, what is the procedure for the same?
A.You must file GST REG-16.
Q.
What is the GST rate applicable on fertilizers?
A.12%. Chapter 31.
Q.
What is the impact of GST 18% on the construction sector, how land value is excluded? Will the builders pass on the benefits? If not, what can the consumer can do?
A.Effective rate of taxes will be much lower than 18% because input credit shall be available. Real estate firms are gearing up to pass on tax benefits to home-buyers under the goods and services tax (GST) regime, which could lead to marginal changes in property prices. Depending on the stage of construction and location, prices may fall upto 3%.
Q.
Does the implementation of GST affect the special status of Jammu and Kashmir in any way?
A.Difficult to answer. Union Finance Minister Arun Jaitley had assured the Jammu and Kashmir government of all possible help in restructuring the GST rollout for the state while respecting its special status under Article 370 of the Constitution.
Q.
Is there any clarity on the existing area based excise exemption units in GST?
A.Area based exemption scheme no longer available under GST. However, Centre working on a refund scheme in lieu of such exemption.
Q.
How will high sea trading be impacted by GST?
A.High Sea trading will continue to remain exempted under GST as it was under earlier sales tax laws.
Q.
I hold one PAN number and one GSTN number. I have a retail jewellery shop and receive rent plus service tax from commercial properties. Can I use the same R1 form for filing returns of both retail invoices and rent receipts? Should rent receipts have separate serial number?
A.You can use the same GSTR-1 form to submit details of all your outward supplies. You can refer to section 12 of the said form for details of HSN-wise summary of your outward supplies. Would advise you to have separate invoice serial number for your rental business.
Q.
Will GST prove to be for the greater good for the common man?
A.It will. We will experience a lot more accountability among businesses, more transparency, more free movement of goods across India. Expect the common man to have more accessibility to goods and services and also prices to come down for many common man products over the medium and long term.
Q.
Is it better to buy a two wheeler before or after GST is implemented?
A.Two wheelers of less than 350 cc would experience a price cut. Prices to come down by 3-5% depending from State to State. So buy after GST implemented.
Q.
What an be done about the goods produced in backward area where there is no excise documents to avail GST credit of stocks lying at various locations across India.
A.You can avail deemed credit of 60% where CGST rate on your product is 9% or more and 40% where your CGST rate is less than 9%.
Q.
GST rate applicable on namkeens?
A.12% rate. Chapter heading 2106.
Q.
What is the tax application for services like labour contractors, canteen contractors and other such services?
A.GST at 18%. No Longer under Reverse Charge.
Q.
What is the GST rate on snuff?
A.Chapter 24 GST rate 28%.
Q.
Stock how old can be transferred Gst? Should purchase rate of old stock should be mentioned, if so what will be the process?
A.Excise Credit for Stock whose invoice is dated on or after 1st July 2016 can be claimed under GST. Usually, don’t need to mention purchase rate of old stock. Will need to file form GST TRAN-1 by 30th September, 2017.
Q.
If buyer and seller enter an agreement for sale before 30 June and the loan has not been sanctioned or loan amount not disbursed, will GST be applicable?
A.Loan amount is immaterial. Where agreement for sale is made on or before 30th June, the transaction has already taken place under old regime and no GST is applicable.
Q.
The development of a building in Maharashtra is about 95% completed, completion certificate has not been issued by the Municipal Corporation, only the file has been submitted for completion certificate. 3 bookings available. WIll I get benefit of GST on the submitted file for completion certificate?
A.Since the building is 95% complete, I doubt there will be significant gain to the builder on account of GST. In which case, there wont be much benefit he would be able to pass on to you on account of GST.
Q.
GST is levied as per ship to address or bill to address? A in Madhya Pradesh sells goods based on the PO issued by a customer in Madhya Pradesh but with instructions to ship it to Tamil Nadu. Will IGST be levied or SGST and CGST? Is there any period limit for liquidation of stock for which credit is allowed to be carried forward? Can IGST or other GST if accumulated at branch office allowed to be transferred to HO for discharging HO GST liability?
A.There would be 2 different transactions leviable to GST in this circumstance. The first is between A in Madhya Pradesh with his customer in Madhya Pradesh. This is an intra-state supply and CGST and SGST will be charged on it. The second transaction is between the Madhya Pradesh customer with his Tamil Nadu customer/person. Since the movement of goods are terminated in Tamil Nadu, on this second transaction, IGST will be charged.There is no time limit for liquidation of stock for which credit is allowed to be carried forward. If the branch is in the same state as HO, then the registration is common. In this case, GST accumulated can be used by the branch. If it is inter-state, I suggest setting up an Input Service Distributor to distribute credit on expenses.
Q.
How will GST will a real estate/flat that is supposed to be completed by say 2020/2021? Will post-GST tax burden be more on the buyer in this case?
A.Prices are expected to come down- specially for the projects the construction of which is in preliminary stages.
Q.
For logistics company, what will be the GST rate applicable?
A.We have highlighted below the rates applicable to services pertaining to transportation of goods:– Transport of goods by rail – 5 percent (No input tax credit)- Transport of goods in a vessel – 5 percent (No input tax credit)- Services of goods transport agency (GTA) in relation to transportation of goods – 5 percent (No input tax credit)- Transport of goods in containers by rail by any person other than Indian Railways – 12 percent – Goods transportation services other than the above – 18 percent”
Q.
I am an importer and trader of good in India. Also I book orders in the name of customers where the goods will be delivered directly to the end users for which i get X %. As per GST how much tax do I need to pay for booking orders for customers?
A.Under GST, the consideration charged as commission from the customer for such transaction would be subject GST.
Q.
If invoice is raised in May/June ’17 and payment is made in July ’17, which tax is applicable? GST or Service tax?
A.Since the invoice has been raised in May/ June, 2017, the point of taxation has occurred under the service tax regime. Accordingly service tax would be charged on such invoice.
Q.
What is the GST rate for mobile phone accessories like battery, charger, covers etc?
A.We have highlighted the rates below:- Telephones for cellular networks or for other wireless networks – 12 percent- Parts for manufacture of Telephones for cellular networks or for other wireless networks – 12 percent
Q.
We are not an excisable unit, but have imported machinery. Will we get ITC on 30.6.2017 as stock on imported goods for which we have already paid import duty?
A.As per Section 140 (3) of the CGST Act, 2017, a person registered under the GST law who was not registered under the erstwhile tax regime or a first stage dealer or a second stage dealer or a registered importer or a depot of a manufacturer, would be entitled to take credit of eligible duties in respect of inputs held in stock and inputscontained in semi-finished or finished goods held in stock on the appointed day.The provision highlighted above does not envisage a situation of deemed credit for capital goods.Further, even if the unit is registered under Central Excise Act, 1944, on account of being non excisable, such unit would not have been eligible to claim credit of imported machinery and therefore, such credit cannot be carried forward under GST.
Q.
If equipments like machine, compressor, spares etc. are to be sent to another state for demonstration or service [sent on returnable basis] is GST applicable from 01.07.2017, if yes what is the GST percentage?
A.Supply of goods without consideration between related person is taxable under GST laws. Accordingly, movement of said equipments to another State for demonstration or service would attract GST. Credit of GST charged by the supplier should be available to the recipient subject to restrictions provided under GST laws. GST would apply at same rate on which the respect equipment is taxable. Please note that in case such movement is between two unrelated parties, GST would not be payable.
Q.
Our head office is in Karnataka and we have service work in different states. Do I need to get registered under each state for GST?
A.Under GST laws, a supplier is required to obtain registration in each state from where it makes a taxable supply of goods or services. Accordingly, in case services are provided from different locations across the country, separate registration for each State would be required. However, in case there are no offices across the country and engineers/ people travel to perform the services, no separate registration in each State should be required.
Q.
As per excise law we prepare stock transfer invoice while adding the basic+10% & calculate 12.50% excise on it, how is this to be continued?
A.Supply of goods without any consideration between related persons is taxable under GST laws. Accordingly, stock transfer between two different GST registered persons would attract GST. In order to value such supplies, following two options are provided under law:- Value stock transfers at ninety percent of the price at which such goods are sold by the recipient to an unrelated party. – Adopt any value provided full credit is available to the recipient. Accordingly, any value such as cost plus mark-up or cost only can be adopted for payment of tax on such transactionsTherefore, depending on business model, one may adopt any of the above options.
Q.
Can exporter use credit of export sales against output tax of local sales?
A.A taxable person engaged in provision of domestic and export supplies is eligible to claim credit of tax paid on input goods and services for payment of output GST liability. This is subject to restrictions provided under GST laws. In other words, an credit of input goods and services used for making export supplies can be used to pay output GST on domestic supplies. In case, such person is unable to utilize input credits completely, he can claim refund of unutilized credit.
Q.
What will be the tax slab for nutrition products under GST?
A.This needs to be checked from HSN guide issued by GST council based on HSN code identification
Q.
Is there a rule for making payments within 6 months or else there is a reversal of Input Tax Credit?
A.Yes, in customer does not pay their vendor within period of six months then the credit availed on inputs has to be reversed by customer and on making payment they can re-avail this credit.
Q.
A mandap keeper service provider has received advance today of Rs. 1,00,000 plus 15% service tax, for a marriage ceremony which will be held in December 2017. The full and final consideration of the event will be Rs 4,00,000. Will advance received now be taxable again under GST as the GST rate for this service is 18 percent?
A.In this case since the service is provided under GST regime and final invoice will also be issued under GST regime, the GST shall be charged on total invoice value. For advance service to be charged under current regime, hence there is possibility of double taxaton in this case.
Q.
As a consuming public after HOST will there be a price spurt overall? Please answer w.r.t LIG,MIG & HIG?
A.There will be no major price change on overall product range which are of essential nature, but in short run due transitional challenges there might be an increase. IN long run prices are bound to come down and some products will go down even up to 2%.
Q.
At present LIC policy for Senior Citizen “Prime Minister Vaya Vandana Pension Policy” is exempted from Service Tax. Under GST will the exemption continue for the above insurance policy?
A.The similar exemption is still awaited on this exemption and same shall be confirmed by GST council.
Q.
Is GST applicable on ocean freight export?
A.Yes. GST is applicable on ocean freight, there are certain exemptions available which needs to be re-validated before executing such transaction
Q.
If I buy goods from unregistered dealer, I am required to pay the applicable GST? Having paid this tax will I be able to take credit and use the same at the time of selling?
A.As per latest amendment if you by from unregistered dealer then up to 5000 INR per day including purchases from all unregistered person no tax is to paid by purchaser. In case of of purchase value more than 5000 INR the tax is to be paid under reverse charge. But the assessee can claim such credits after payment of taxes.
Q.
Can we raise retail invoice with all GST included?
A.No, in GST if you are raising an invoice the tax has to be shown separately, but in case of retail you donât have raise a separate invoice till the time your sale value is more that 50000 INR for that transaction.
Q.
Say today I have stocks that are taxable at 5% and after GST tax rate is 18%,the cost to the dealer will be 13% more?
A.Assuming that this 5% is VAT rate, please also consider the rate of excise and check if the credits are available to you or not. In case you have excisable document then you can avail the entire credit of excise, else you can claim 60% of such credit subject to compliance of relevant conditions of GST law.
Q.
What is the GST rate applicable for work contract?
A.Works contract is treated as service under GST and shall be charged under 18%.
Q.
What about prices of cement and steel with after GST implementation? Will they go up or down?
A.This needs to be checked with the existing tax rates and proposed rates under GST.
Q.
I own a supermarket. How do I get an input tax credit for my holding stock, if my vendor does not reimburse the hike in tax. How does the 40% or 60% subsidy work out?
A.In your case for the current inventory that you are carrying, if you do not have the excise documents, then you can avail 40% or 60% of credit on CGST portion paid at the time of sale of such material. This will be available to you till 6 months from 1st July and every month whatever inventory is sold out of this current stock has to be shown in your monthly GST return separately.
Q.
I am planning to buy Innova Crysta this month. If I wait up to next month post GST implementation will price of this car will come down?
A.The prices of car will depend on current tax and proposed taxes under GST. In case net taxes under GST are at higher rates than existing excise and VAT rates, then the car prices may go up. In addition to this there is an additional duty in name of certain compensation cess being charged under GST, which may increase the cost of cars.
Q.
What is the GST rate applicable on G.I. pipes?
A.You need to check based on HSN code available in HSN code guide approved by GST council for this
Q.
If we buy purchase goods from a manufacturer, who is under composite scheme of GST, then, will there be any tax liability on us or not?
A.No, a vendor registered under composite scheme cannot impose any tax on invoice issued to their customer.
Q.
A software company located in one state alone provides IT services to an entity having branches across India through remote access. The IT company does not have offices in any other state. Would the said IT company be required to be registered in all these states? Or is it required to be registered only in the state from which it acts through remote access?
A.In case an IT company is providing services by offshore activities without physically visiting the locations, then there is no need to register into those states. But in case the performance of project cannot be completed without visiting individual locations then an assessment has to be made to check the permanency and nature of work, based on which only it can be decided if the registration is to be taken or not.
Q.
I purchased imported chemicals from dealer. How I will get ITC against this?
A.If such dealer is registered in India, this kind of purchases will be treated like normal purchase under GST and direct credit will be allowed to you under relevant act.
Q.
As aan FMCG distributor, what document should I collect from a retailer who has a turnover below 20,00,000.00/annum?
A.You donât have to collect any documents from your perspective as you are selling material to them and you must be issuing tax invoice for supplies made by you.
Q.
My H.O. is at New Delhi and registered under GST. The commercial building is in Noida which is rented out. If we raise the rent bill from H.O. to Noida tenant and charge IGST, do we have to register in UP as well?
A.For rented property one has to raise an invoice from the state from where the premises is situated, hence in this case there may be a requirement to get yourself registered in the state where you have building.
Q.
I have my head office in Kolkata and branch in Bangalore. The turnover in both the states crosses Rs. 1 core individually. Does each unit have to conduct GST tax audit separately? What books of accounts does the branch need to maintain?
A.Yes, both units are required to conduct the GST audit and the records required are books of accounts including financial statements at state level
Q.
Once GST is implemented, will Customs Educational Cess, Customs Sec and Higher Education Cess be charged or not?
A.Some of these cess will be merged into GST and customs Education cess will still continue.
Q.
Is GST in the favour of the common people?
A.Yes, GST is in favor of common people and it is presumed that prices of commodities shall come down in coming weeks.
Q.
What is Goods and Service Tax (GST) and what are the commodities proposed to be kept outside the purview of GST?
A.GST is common indirect tax to be charged in India. Except Alcohol for human consumption, Petrol and HSD, all other products are covered under GST
Q.
What effect will GST have on car purchases?
A.Cars will become cheaper as effective rate of taxation on luxury cars have come down under GST regime.
Q.
The service tax on rent was 15%. Under GST what is the rate for service tax on rent? Is any cess to be paid?
A.Rate for service tax is 18% under GST.
Q.
Will TDS on rent be deducted? Should this be paid as GST and the return be completed in August?
A.TDS on rent is to deducted under Income Tax ACT 1961 and GST is an indirect tax, hence both needs to be charged. The return filing process is delayed under GST and hence now you will be required to submit return in September.
Q.
What will be the GST rate for cotton seed and cotton seed cake? Will the previous input credit balance be adjusted in it or not and at what rate?
A.This needs to be checked with the rates specified under GST HSN list.
Q.
Is there any change in custom due to GST?
A.Yes, customs act will be changed as per requirements of GST. Duties such as Counter Vailing Duty (CVD), Special Additional Duty (SAD) shall be removed and instead a duty of Integrated Goods and Services Tax (IGST) shall be charged.
Q.
GST is nil for turnover under Rs. 20 Lac. Will the margin of my medical store be affected? Will I be required to file any GST documents?
A.No, as your margin is on your cost and since for your business cost will be supply price plus GST charged by vendor, technically your margins would not reduce.
Q.
Labour charges were exempted under VAT. Now under GST what it is taxable,do we require any other registration under GST?
A.In case labor charged are separately charged on invoice while supplying material to vendor, the tax shall also be charged on labor charges under GST.
Q.
For billing to a Union territory, what is tax applicable IGST or UGST? Can we set off Input credit IGST against SGST or can it only be set off against CGST?
A.For billing to Union Territory, IGST to be charged. IGST can be set off against CGST and SGST both.
Q.
What is the easiest way to find the HSN code?
A.Identification of HSN code is very simple activity and they checked from the list of HSN issued by GST council. In addition to this as a reference once can use old excise tariff codes and compare them with HSN
Q.
For environmental consultancy, is there any tax?
A.If there is any consulting charges recovered under any name from client and the total value of such fee s more than 20 lakh in a given year, then such person will be required to be registered under GST.
Q.
1st July onwards, a new invoice number series has to be started or can the same series continue?
A.Same series can continue, but the number series shall be sequentially numbered.
Q.
Is there a user friendly lookup resource for GST rates, HSN/SAC code?
A.Identification of HSN code is a very simple activity and they can be checked from the list of HSN issued by GST council. In addition to this as a reference one can use old excise tariff codes and compare them with HSN.
Q.
We are tour operators, our customer wants to go trip in August’17 and he paid the full amount for the trip in July’17. What is the GST impact. Do we have to make an invoice or an advance receipt?
A.In such case you need to issue an advance receipt to the customer in the month of July by charging GST on complete value. Once the trip is completed, the tour company shall issue an invoice to customer and charge the tax accordingly, the customer does not have to pay the tax again and can claim the credit of paid in July, in the month of September (note: the credit is to be taken only when the same is allowed as per law).
Q.
Whether an Associate Transport Contractor is eligible for Composition Scheme under GST?
A.No transporter are not eligible to be covered under composition scheme.
Q.
I recently purchased a flat, the loan disbursement is yet to come. What will be the impact of GST, if the disbursement happens after 30th of June? Do I need to pay GST (on the loan disbursement amount)?
A.In case the loan is disbursed after 30th June and payment to builder is made after 30th June, then there is no change under GST as builder would have already charged service tax under old regime.
Q.
Whether voluntary registration (annual turnover is less than Rs.20 lakhs) under GST is allowed?
A.Yes, one can take voluntary registration under GST
Q.
Why was GST not implemented on petroleum?
A.The decision was made by GST council to keep petroleum products out of purview of GST, because to compensate the loss arising to states due change in tax regime.
Q.
How will GST impact NTPC? We purchase equipments and install through contracts and generate electricity. What is the GST rate applicable?
A.Since production, transmission and distribution of electricity is exempt under GST, hence GST credit received at the time of purchase of asset, material and services to be treated as cost.
Q.
What is the tax rate for pumps. Motors, pipes and fittings?
A.This needs to be checked with the rates specified under GST HSN list.
Q.
What is the place of supply in case of ex-factory/Ex-works sales i.e. where buyer is from one state and the seller is from another state, and freight is borne by buyer? In the above case is CGST/SGST applicable or IGST is?
A.There is a clarity awaited from law on this issue, but based on our view IGST to be charged on such invoice. This is taken to support the buyers to avail the credit under GST regime.
Q.
In case of a partnership firm what is the PAN to be recorded?
A.In case of GST the GST registrations number allotted on GSTN portal to partnership firm shall be quoted on invoice. This GST registration number is based on PAN of client.
Q.
What will be the GST rate for scrap steel products?
A.Scrap of steel to be charged at the same rate of steel and in case rate the same needs to be confirmed from the list of HSN.
Q.
Does GST apply to medical profession?
A.No, medical services are exempt from GST, in case a medial professional only provides medical services then no GST registration is required.
Q.
I have a takeaway restaurant in Delhi and have arrangements with Zomato/Swiggy. Can I register under composition scheme as my total sale will be less than 75 lacs? What GST rates will be applicable for my entity?
A.Yes, as a restaurant you can go for composition scheme and then you donât have to charge GST on your customer. The rate for GST under composition will be 5% .
Q.
I received Rs 8 lacs commission from Gujarat and Rs. 2 lacs from Maharashtra. What are the tax liabilities for me?
A.You will be required to register under GST, since your income comes from inter state supply and in case of inter state supply limit of 20 lakh does not apply for registration, hence you will be required to take registrations and comply with GST norms
Q.
Do laundry services come under GST? If yes, what is the applicable tax rate?
A.GST is payable on laundry services @ 18%.
Q.
What is the heading code/ group code and accounting code for washing of cotton fabrics and dry cleaning services?
A.Group code of washing of cotton services and dry cleaning services is 99971 (washing, cleaning and dyeing services).
Q.
Is RCM applicable on professional fees if the services provider is not registered under GST?
A.Yes, GST would be payable under reverse charge mechanism on professional fee procured from an un-registered supplier
Q.
What decision has been taken on pending C forms and assessment status? What is the time limit for receiving pending C forms?
A.As per CST Act, 1956, Form C is to be submitted in 3 months after the end or quarter.Assessments will continue as per the VAT legislation.
Q.
What valuation should we use for stock transfer between different plants of the same company?
A.Assuming it is a inter-state stock transfer and the receiving plant is eligible to take full credit under GST regime then any value declared on invoice will be treated as open market value and GST can be paid on such value.
Q.
I purchase bullion from a dealer for Rs.1000 and sell it to another customer. Can I sell it for Rs.1000 or more than Rs.1000?
A.There is no restriction on value to be charged from unrelated customers under GST law. You can sell it any price.
Q.
With manufacturing locations in Bangalore and marketing offices is Mumbai, Delhi and Kolkata. No sales from branches but we pay rent and meet employee expenses like travel, telephone Are these expenses taxable? If yes can we account and pay from Bangalore or do we need to register each branch?
A.Yes, GST would be payable on rent, travel and telephone expenses. You can account and pay from Bangalore. However, credit will be available depending upon the nature of service and their respective place of supply.
Q.
We have 3 SEZ units in the same state, is it necessary to get separate registration for all 3 units under GST?
A.As per the recent clarification by the Government, SEZ units under same pan in one state can take a single registration.
Q.
Can we use one manual bill book for both registered and non-registered dealers?
A.Yes, you can use one bill book for both, registered and unregistered dealers.
Q.
What is the GST rate applicable on car tyres?
A.GST is at 28% on car tyres.
Q.
What is the impact of GST on Life Insurance Policies?
A.GST rates on life insurance services is 18%. The value for the purpose of GST would be as under:- Gross premium charged from the policy holder less the amount allocated for investment or savings on behalf of the policy holder, if such amount is intimated to the policy holder at the time of supply of service- 10% of the premium charged, in case of a single premium annuity policies – Gross premium charged if the entire premium is towards the cover in life insurance- All other cases, 25% of the premium charged from the policy holder in the first year and 12.5% of the premium charged from the policy holder in subsequent year.
Q.
Is HSN Code compulsory in local invoice?
A.Requirement to declare HSN code is dependent upon the annual turnover of the preceding financial year. Same has been provided below:- annual turnover up to than INR 1.5 Cr. – HSN Code need not be declared – annual turnover between INR 1.5 Cr to 5 Cr – 2 digit of HSN to be declared- annual turnover more than INR 5 Cr – 4 digit HSN to be declared
Q.
Will product classification of GST rates be announced industry-wise?
A.GST rates for goods have been provided basis their HSN classification.In case of services, general GST rates have been prescribed as 18%. Lower and higher rates have been provided for specific services.
Q.
Tax Structure under GST for supply in DTA by EOU?
A.Supply to DTA by EOU will be treated as normal taxable supply under GST. If the place of supply is in the same State, CGST and SGST would be payable and if the same is in different state IGST would be payable. Further, customs duty would be payable (along with interest) to the extent of exmeption taken on import of inputs used in manufacture of finished goods or provision of services supplied to DTA.
Q.
Supply of services by Indian EOU company to outside India. Whether GST will be applicable to Indian EOU company or will be zero rated?
A.GST applicability on supply of services from an EOU to outside India would depend upon whether the same would qualify as export of service or not. In case the same qualifies as export of service the same would qualify as zero rated supply else GST would be payable.
Q.
Hi,I own an A.C restaurant,pls tell me how much GST I would collect from customers for aerated dAs the owner of an AC restaurant, how much GST can I charge to my customers for selling Pepsi from a fountain machine?
A.Supply of good and drinks in a restaurant has been deemed to be a service in terms of Entry 6 of Schedule II of CGST Act. Aerated beverages provided in a restaurant would also be deemed to be a service.You will have to charge GST @18%, i.e. the rate applicable for supplying food and drinks in an AC restaurant.
Q.
We are a Chemist with annual sales of around 1.5 crore that does things manually. How do we prepare cash memo bills from 1 July given we prepare 100 bills per day on an average? Do we show the tax charged even though MRP is inclusive of taxes?
A.For all your sales you will have to raise a tax invoice under GST and there is a requirement to show the amount of tax charged on the invoice. This is applicable even for goods which are sold on MRP. You can raise the invoice either manually or electronically.
Q.
We are currently doing E1 transaction In Karnataka, while our customer is in Pune as well as other states. What kind of invoice do we need to raise for realising our payment?
A.In case of E1 transactions there are three parties lets say vendor, assessee and the customer. Under the GST regime, vendor will bill to assessee and ship to customer and will charge GST which will be available as a credit to assessee. The assessee will again raise a tax invoice on customer and will charge GST. Therefore, you will have to raise a tax invoice for realising your payment.
Q.
A vial seal crimper can be a mechanical or pneumatic or electronic device used in different applications, e.g. perfumery / pharmaceutical / any laboratory. Where will it be classified ?Is HSN code to be based on ITC-HS and Excise Classifications?
A.The rules of interpretation of the first schedule of the Customs Tariff Act, 1975, including Section Notes and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applicable to classify the goods as per the HSN notified by the GST Council.
Q.
I have booked a ready to move house in Noida. Current tax on the purchase is around 4%. Will the tax rise after gst and I will have to pay more for the property?
A.We understand that your ready to move house is a fully constructed flat and completion certificate for the same is available. GST is applicable on supply of goods and services and not on immovable property. Stamp duty will be applicable on immovable property.
Q.
What will be the tax rate under GST for an individual giving consultancy service (not registered under any company act). What is the exemption limit against existing 10 lacs per annum.
A.You have not mentioned what kind of consultancy you are providing. Most consultancy services would fall under the 18% tax bracket under GST. The minimum threshold limit under GST would be 20 lakhs per annum, for most places in India.
Q.
In a business in the textile industry, material is sent for jobwork and the turnover is below Rs 20 Lakh. Payment is made as per RCM. Would I get ITC for that, if yes when would i get credit?
A.Yes. You would get immediate credit for any amount paid under Reverse Charge. However, it is to be noted, that under ordinary circumstances, you do not need to pay GST for sending goods to a Job worker subject to conditions.
Q.
I supply trucks to a company. The transportation company pays service tax itself, do I need to register myself under GST?
A.It is unclear as to what do you mean when you say you supply trucks to a company. However if you give an owned truck on hire, under GST you are liable to take registration if the aggregate value of your annual turnover is higher than 20 lakh rupees.
Q.
Regarding input credit of closing stock by June’17; we purchased goods from an outside state-by paying Excise Duty plus CST. What is the procedure to get credit of ED and CST?
A.CST not available as credit on existing stock. Need to file GST TRAN-1 to claim ED credit by 30th September.
Q.
Is GST applicable only once on ready goods, or every time a good moves between several mediators?
A.GST is a supply based based and in most cases applicable when movement of goods take place. However, in some cases there may be no GST despite movement of goods such as goods removed for Job Work or branch transfer of goods within a state.
Q.
In case of stockbroker issuing a contract for purchase/sale of shares, is GST applicable on stamp duty & STT? What about transaction charges levied by the exchange & recovered by the broker?
A.No GST on sale purchase of securities. Therefore,no GST applicable on stamp duty and STT.
Q.
What will be the GST rate on poultry keeping equipments (HSN Code 843629)?
A.12%.
Q.
Is state wise GST registration required for vendors/sub-contractors?
A.Yes required if the service/goods provided by them is taxable and their place of supply falls in different states in India.
Q.
How will GST impact the logistics industry?
A.Logistic businesses are set to gain substantially from GST . Entry points at each state in India is now removed. This would lead to substantially reduced lead times for truck movement across India. Logistic companies would enjoy cost savings of upto 10-15% on this account.
Q.
In the GST regime, will there be any exemptions to religious places for construction, erection, installation, professional services by architects, structural engineers as available in service tax vide notification No. 25/2012 – service tax dated 20th June 2012?
A.The exemption is no longer available under GST.
Q.
What will be GST’s impact on VAT and service tax?
A.GST will subsume VAT and service tax and they will cease to exist with effect from 1st July,2017.
Q.
Rubber related products like o rings and gaskets fall under which category/ tax slab?
A.Your items should be taxed at 18% GST and fall under Chapter 40.
Q.
For tobacco products, does a re-seller pay GST only on profit or GST plus cess?
A.Tobacco re-seller will pay GST plus cess.
Q.
What is the GST rate applicable on weighbridge?
A.28%. Please refer 8483.
Q.
The exact impact of GST on the economy is still not clear, especially the real estate sector. Will it impact positively on this sector or not? For the home buyers, will it be beneficial or not? How will its overall impact be? Also, as an undergraduate of commerce, what must be known to me in context to GST?
A.In the medium to long term, GST should impact the real estate sector positively. Developers will be able to take credit of inputs such as cement and steel which should reduce costs. Developers are expected to pass on this benefit in the long term to home buyers. You must know GST is a consumption based tax and levied on supply which is a much broader term than sale.
Q.
What is the GST rate applicable for software services?
A.GST on software services at 18% with full Input tax credit allowed.
Q.
What is the rate of duty for a railway fan manufacturer?
A.28%. Refer chapter 84.
Q.
On commission basis(Rs 50 for a payment or Rs 1000), I make online payments for people from a savings account (college admission fee, driving license fee etc). I pay around Rs. 10 lac annually. Will I have to pay any tax?
A.You can treat the amount of money you are paying on behalf of your clients in the capacity of a pure agent. The value of cost incurred as a pure agent will be excluded from the value of supplies. Therefore, if the commission you charge is less than 20 lakh rupees, you will not require to pay GST.
Q.
In what cases do we raise tax invoice and in what cases do we raise service invoice?
A.A tax invoice is to be issued by a registered person making a supply of taxable goods . GST does not define service invoice. However, a tax invoice is to now to be issued under GST for supply of both goods and service.
Q.
What will be the custom duty and GST rate for imported pet resin?
A.GST rate on pet resin being a type of polymer resin would be classified under Plastic (Chapter 39). The GST rate for the same would be 18%.
Q.
Does a trader, who took the GST Number having turnover of less than Rs. 20 lakh need to comply with GST when he has took the number only due to migration process?
A.No need to comply with compliance procedures such as return filing if annual aggregate turnover is less than 20 lakh rupees.
Q.
I fall under GST composition rules as my shop has a turnover of Rs. 25 lakh. If I go for the composition scheme, what will happen to the present stock that was purchased on C form from outside my state?
A.No credit allowed on Central Sales Tax paid on earlier stock. Also, since you are opting to a composition scheme, any input credit on existing stock shall lapse.
Q.
What will be the likely percentage of price variation in construction materials before and after GST in Karnataka?
A.Cement should decrease by 2%, wallpaper should increase to 28% under GST, Paints and plaster to increase by approx 2% to 28%.
Q.
In a business of renting costumes/clothes, how to rate the stock for GST purpose? I have fabrics that are non taxable in pre-GST era.
A.All kinds of fabric- natural as well as man made- to be taxed at 5% under GST. Rental of clothes would be taxed under GST at 18% with full input credit available. Therefore, you can claim credit for GST you pay on purchasing the fabric that you rent out.
Q.
What are the expected price margins for two wheeler vehicles in post GST era?
A.Prices of 2 wheelers under 350CC expected to fall by around 2%. Price of 2 wheelers above 350CC expected to increase by 1%.
Q.
Is input credit in stock available for non-excise SMI . What will be method of calculation?
A.Where the industry is excise exempt, no input credit in this regard on existing stock shall be allowed.
Q.
We receive brokerage on distribution of mutual funds. Till two years back we were forced bear burden of service tax although our income was below 5 lakh. Then fund houses stopped deduction of service tax on reverse charge mechanism. Now we are being asked to register for GST other wise reverse charge mechanism will be applied by fund houses. If we register, please confirm if we have to pay GST despite income being below 5 lakh.
A.No GST on reverse charge on brokerage on distribution of mutual funds. However, since you are an agent, you need to register under GST compulsorily.As per the communication from Association of Mutual Funds in India (AMFI), from July 1, fund houses will deduct GST from the commission paid to distributors who do not have a GST registration number and pass this tax to the government. They will not deduct if a GSTN number is provided to them.
Q.
How is export being treated under GST?
A.Export is NIL rated. Meaning no tax will be required to be paid under GST on exports. Refund of un-utilized input credit shall be available to the exporter. However, no refund shall be allowed on goods exported out of india where such goods are subject to export duty.
Q.
With income of around Rs 50 lakh per year from various residential flats given on long lease, and rent from a shop amounting to Rs. 2 lakh, will I be exempted from the GST provisions?
A.No. You will need to pay GST on the entire amount provided you are receiving more than 20 lakh rupees in one entity.
Q.
I booked a house from a builder in April ’15 and paid 25% of total consideration as advance and entered into an agreement. Remaining 75% of total consideration will be paid at the time of possession of completed house with all fittings and fixtures. Possession of the completed house is likely to be given within 2-3 months. Will GST be applicable on me at the time of taking possession after implementation of GST? Service tax will not be applicable on me if I take possession before 30/06/17.
A.GST will be charged on the 75% consideration which is taken after 1st July, 2017. Service tax will be applicable on or before 30th june, 2017.
Q.
I have four units under same registration number in one state, do I need to raise different tax invoice from all units or one series of invoice from any of these units?
A.Invoices can be issued under the same series within the same state. For simplicity in reporting, different invoice series for sales and services can be maintained.
Q.
We have fertilizers in stock which are currently sold at MRP. After 1 July 12% GST would be applicable on fertilizers but currently there is no VAT in our state. Can we sell stock after GST implementation @MRP+12%?
A.Concept of MRP valuation would cease to exist under GST. Under GST, taxes would be levied on the transaction value of goods.
Q.
For SEZ based manufacturers, what benefits are available for supplies to solar projects under MNRE certificate?
A.Supply of goods in DTA by a manufacturer based in SEZ would be considered as an import transaction. Taxes i.e BCD plus IGST would be paid by the recipient under reverse charge.At present, no exemptions for solar projects operating under MNRE certificate have been prescribed.
Q.
What is the provision for suppliers acting as pure agents for service providers? Under the current GST law, it seems that it is for a supplier acting as a pure agent for service receiver.
A.For suppliers acting as pure suppliers, provisions are prescribed under the valuation rules. Important to note that conditions prescribed for a person to qualify as a pure agent have been rationalized under GST, as compared to the conditions under service tax laws.
Q.
IS GST applicable on Residential Housing societies that collect less than Rs.5,000 per member per month but more than Rs.20 lacs annually?
A.Exemption from payment of GST is available to residential housing societies which collect up to INR 5000 per month per member for the common use of its member.However, no exemption has been prescribed in the case such amounts exceeds INR 20 lacs annually.
Q.
With respect to interstate stock transfer what are the tax implications under GST?
A.Inter-state stock transfer are subject to levy of taxes under GST and would attract a levy of IGST.
Q.
How a dealer can pass on Excise, CVD to his sub dealers on the stock the sub dealer will have on 1 st July?
A.If the dealer is registered under excise (as manufacturer or fist/ second stage dealer or registered importer), then the invoice available with the sub-dealers in respect of their closing inventory should have details of excise duty/ CVD. Basis this document, the sub-dealers should be able to transition the credits in terms of Section 140(3) of CGST Act.
Q.
I am planning to buy a house now. Should I wait till GST comes to complete the registration process?
A.The stamp duty payable on registration of an immovable property would continue to apply in the GST regime. Thus, there should be no concerns for registration from a GST perspective.
Q.
Will GST be implemented in Jammu state?
A.The Government of Jammu & Kashmir has expressed its willingness to implement GST in the state of J&K. However, as of now, the GST laws have not been passed by state of J&K. CGST and IGST Act enacted by the Parliament specifically exclude J&K from their jurisdiction. Thus, GST in the state of J&K would be implemented once the GST laws are passed by the J&K assembly. Till such time, existing State laws may continue to apply in J&K.
Q.
How to avail the central excise paid-up to 30 June 2017? Can we take 100% of the excise paid as input while making payment in GST?
A.The credit of excise duty can be carried forward under the excise or service tax return filed for the period ending June 30, 2017. If the assessee is not registered under excise or service tax, then the following alternative options are available to carry forward the credit in respect of closing inventory on June 30, 2017: – If the duty paying document i.e excise invoice is available with the dealer, then the credit of 100 percent of excise duty paid on inputs lying as closing inventory on June 30, 2017 can be carried forward to GST regime – If the duty paying document is not available, then credit can be claimed at specified percentage of the output GST payable on supply of such inventory post July 1, 2017 – The dealer may request the manufacturer of goods lying in closing inventory to issue a Credit Transfer Document (CTD) evidencing payment of excise duty by the manufacturer in respect of such stock. This scheme is proposed to be made available only where the per unit value of stock is more than INR 25,000.
Q.
Should expenditure incurred by an employee on tour like local conv, food etc. from unregistered person come under RCM? Also, if loading and unloading charges paid to local labour for material picked up from supplier’s site will also fall under RCM? If yes, how will the data be maintained for ‘n’ number of labour?
A.Expenses incurred by an employee on local conveyance, meals etc during official tours should not be taxable in the hands of employer under reverse charge mechanism. This is based upon the assumption that these expenses are incurred by the employee in his own capacity without creating a contractual relationship between the employer and the supplier. Any taxable supply which is procured from an unregistered person would be liable to GST under reverse charge. However, an exemption has been notified which provides that if inward supplies from unregistered persons do not exceed INR 5,000 in a day, then no liability under reverse charge would arise. Further, the invoice rules provide for an option to raise a consolidated invoice at month end for all such taxable supplies procured from unregistered persons during the month.
Q.
What is the threshold limit for audit under GST?
A.Threshold limit for audit of accounts as specified under sub-section (5) of section 35 is RS 2 crores.
Q.
How do we get GST input for banking charges? Can the bank give us GST paid invoice for the same?
A.For the taxable bank charges the banking company will have to issue a Tax Invoice, charging GST as applicable and business can claim the credit of the same based on the Tax Invoice.Basis our understanding from other GST environments, banks would issue a tax invoice in the form of bank statement which is also in consonance with the concession offered to the bank under Invoicing Rules.
Q.
What is the GST rate for wages paid for job work for manufacturing of gold and silver jewellery?
A.In terms of Notification 11/2017 dated 28.06.2017, the CGST rate for job work in relation to cut and polished diamonds; precious and semi-precious stones; or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51of 1975); would be 2.5%. Thus the effective GST rate would be 5% (assuming equal SGST rate of 2.5%).
Q.
Supply of taxable goods by an unregistered supplier to a registered person is taxable under reverse charge under GST. Is the reverse charges to be paid under different tariff rates for each supply?
A.Reverse charge will have to be paid at the appropriate rates applicable to the goods that are procured.
Q.
I’m a proprietor and own a four wheel car under my personal name for which I’m claiming depreciation,expenses and insurance in my proprietorship firm. Now in the GST era how can I claim insurance premium in my firm.
A.The question is unclear. If it is in relation to the position under direct taxes post- GST, it may be mentioned that the position of insurance premium will not change after GST introduction.
Q.
As a small manufacturer with turnover of around Rs. 60 lac, is it necessary for me to register under GST?
A.Yes. The threshold below which you are not required to be registered is rupees twenty lakhs.
Q.
How to bill from after July 1? We have always maintained our VAT bills manually and have no manpower in the business.
A.You will have to issue tax invoice for all sales that exceed rupees two hundred in value. Tax invoice is not required to be issued where the value is less than two hundred rupees and the supply is not to a registered person and the customer does not demand a tax invoice. A consolidated invoice covering all such cases is required to be issued at the end of each day. The invoices can be paper invoices but they must meet the requirement of the GST Act and Rules and the specified details will have to be electronically uploaded as prescribed.
Q.
What is the GST tax rate applicable on job work?
A.Job work services in relation to textile, jewelry, precious and semi-precious stones, printing of books and processing of leather shall be taxable @ 5%. Other job work services shall be taxable at the standard rate of 18%.
Q.
Can we raise tax invoice for exempt goods also along with taxable goods?
A.Where a supplier makes a supply of both taxable and exempt supplies in a B2C transaction to the same customer, a single invoice can be issued in relation to the taxable invoice, and details of the exempt supply may also be declared on the same invoice. However, for B2B transactions, there is ambiguity regarding this aspect and it is possible that a separate bill of supply may be required to be issued for exempt supplies.
Q.
In my money lending business in Chennai, I accept deposits from public and paying interest. Is GST applicable? Will collecting interest from borrowers also attract GST? If yes, at what rates?
A.No, services by way of extending deposits, loans, advances, the consideration for which is represented by way of interest or discount are exempt under GST.
Q.
How will a pan India book trader be affected by GST given that books are an exempt item?
A.Since books are exempt under GST, the book trader shall not be eligible to any input credit of GST paid by him on purchase of inputs, input services and capital goods. Therefore, these will be a cost to their business.
Q.
How will GST help the economy over-all?
A.By creating a unified market through amalgamation of a number of Central and State levies, GST is expected to facilitate a seamless movement of goods across states and reduce the transaction costs for businesses. The manufacturing sector would be freed from the cascading effect of taxes, thereby improving the cost-competitiveness of goods and services. Further, uniformity in tax laws, creation of a single window for tax and single date for compliances would further facilitate businesses.
Q.
Are e-way bills required when raw material is sent from the office to the factory within the same city, at a distance of a few kilometers? Later the factory sends the semi finished product to the market for final polishing.
A.As per the draft e-way bill rules released earlier, e-way bills are required to be generated for every transportation of goods where the consignment value exceed INR 50,000. This shall apply to both inter and intra-state movements. Further, where the goods are moved from one conveyance to another during the course of transit, a fresh e-way bill is required to be generated. However, at present, e-way bill rules have been kept on hold and it is expected that further clarity shall be available once the final rules are notified. Till then the existing forms will continue to govern movement of goods.
Q.
On import of capital equipment from China, what would the tax liability be?
A.There would be basic customs duty at rates applicable to the product being imported and an IGST .
Q.
If a customer ask for the break up of the prices, will the price be exposed under GST? Â
A.Yes, the GST has to be disclosed separately, hence the base price will need to be exposed.
Q.
I am in thermal lamination job works business for printer’s printed sheets and others party’s paper sheets.We are using on job work the BOPP/Polyester film and lamination by hot process by machine(Film cost+ working cost). Films GST rate is 18%. Which GST rate we will charge for our job work?
A.The job work charges will attract GST at the residual rate of 18%.
Q.
What about the prices of steel @ cement after July 1st? Will they go up or down? Â
A.That would depend also on the demand supply situation for these products after GST introduction and it is not possible to predict the same.
Q.
What will be the impact of GST on the chemicals’ trading and manufacturing industry? Â
A.There will be a level playing field with un-organised players required to register and pay taxes.
Q.
What will be the impact of GST on the economy?
A.GST is expected to be very good for the economy as it will encourage organized businesses and lead to more tax compliance.
Q.
GST exemption to religious charitable trust for construction, erection, commissioning, repairing and maintenance will be available as was available under service tax notification no. 25/2012 dates 20.06.2012.?
A.As of now no notification has come in force. This needs to be checked once the notification relating such matters is issued.
Q.
With taxes as high as 28%, how will traders make profit? Shouldn’t the taxes on products like face cream, shaving cream, hair care products etc., that are daily use commodities and not luxuries, be less?
A.The rates have been decided by GST council looking at the usage and current tax structure, hence it might seem high to charge certain good at 28%, but if one analyze in depth, we will find that only luxury items are charged at such rates and most of basic needs are charged at lower rates than current tax regime.
Q.
How will GST effect the real estate sector?
A.GST will help the real state sector as lot of credits which were not available to real estate sector shall now be available to them, hence cost of real estate sector may come down in future.How will GST effect the real estate sector? GST will help the real state sector as lot of credits which were not available to real estate sector shall now be available to them, hence cost of real estate sector may come down in future.
Q.
We are into the business of air conditioner sales and services. VAT is 14.5% for Sales and for piping of AC, it is 5.5%. What is the GST rate applicable on us? (75% VAT and 25% service charge was levied in AMC)
A.In such case sale of AC to be charged with rate as specified under HSN code list approved by council and for service of installation, you can choose either charge at the same rate of AC or if you raise an separate invoice for the same you can charge at he rate of 18% for service.
Q.
In our grocery shop, we sell 80% pulses and 20% items of the FMGC sector, what will be the impact of GST on us and on grocery shops in general?
A.If total turnover of your business is more than 20 lakh during last financial year, then you have get registered under GST. You can also choose to get registered under composition scheme
Q.
What is the GST rate for education sector (school admissions and tuition fees)?
A.Education is exempt from GST and there will be no tax charged on such services.
Q.
My client is engaged in manufacturing spinning yarn in Gujarat, as of now, eligible to get a refund on VAT paid on machines in proportion to the sales made under Gujarat VAT Act. Will the same benefit be available in the GST regime?
A.As per GST requirements the assesse is required to charge the complete GST i.e. CGST + SGST or IGST and then based on state notification (if any) they can claim the refund of additional duty paid on account of SGST.
Q.
What type of rent receipt is to be issued as per GST rules? What is the GST rate for rent from commercial properties?
A.In case rent is charged by a registered person to a registered person then a tax invoice to be issued and in case rent is charged by registered person to a unregistered person, then no document to be issued till the value of INR 50000, else a tax invoice will be required. Rent to be charged at 18% GST.
Q.
What will be the GST effect on home loan interest rates?
A.There will be no GST on home loan interest.
Q.
Currently I avail excise benefit in Uttarakhand. What will be the impact after GST?
A.Your product will become taxable and now you will have charge CGST + SGST or IGST on your goods and also you can avail the credits on purchases made by you. In this case whatever additional output liability is being charged on you in form of CGST, the same can be claimed back by central government in form of refund.
Q.
How will GST effect the capital markets?
A.GST is not applicable on most components of capital market, hence it will not have direct impact but since lot of businesses will have more transparency in business, it may result in increase opportunities in capital market.
Q.
I run a small registered newspaper since 1985, should I register my newspaper in GST. If yes how to do so?
A.It depends on turnover, if your turnover is more than 20 lac then you should register yourself under GST, else there is no requirement to get yourself registered.
Q.
If a single proprietor dealing in one hotels and automobiles in the same state, can he take separate registration in the same state?
A.Yes, since the nature of business are different hence a proprietor can take the separate registrations for both businesses.
Q.
As retailers our maximum purchase is from Delhi and a few items from UP and Rajasthan. Our turnover is less than Rs 75 lacs. Is it possible to go for composite scheme with flat tax option?
A.No as per law if your purchases or sales cover any inter state transactions then you cannot avail the composite scheme.
Q.
Is closing stock supported by VAT invoices, being issued by registered dealers in VAT regime eligible for 60% C-GST credit?
A.In your case for the current inventory that you are carrying, if you do not have the excise documents, then you can avail 40% or 60% of credit on CGST portion paid at the time of sale of such material. This will be available to you till 6 months from 1st July and every month whatever inventory is sold out of this current stock has to be shown in your monthly GST return separately.
Q.
What happens to the excise paid on the stock of material?
A.In your case for the current inventory that you are carrying, if you do not have the excise documents, then you can avail 40% or 60% of credit on CGST portion paid at the time of sale of such material. This will be available to you till 6 months from 1st July and every month whatever inventory is sold out of this current stock has to be shown in your monthly GST return separately.
Q.
We purchase fabric and get it converted into home furnushing items such as curtains and cushion covers. Can you let us know the tax to be paid at various stages and credit for it?
A.When fabric is purchased the GST would have been charged at a specified percent by seller and when we sell curtains cushions we shall be charging GST on our sell price, but the time of compliance we have to pay only differential of what we have received from customer and what we have paid to vendor as GST to government.
Q.
The GST rate for garments below Rs.1000 is fixed as 5%. If the MRP of a garment item is more than 1000, and the same is sold for a price less than 1000 on a discount, what will be the rate of GST?
A.In this case, the rate to be charged is 5%.
Q.
How often can an exporter file a refund application?
A.A refund application can be filed by the exporter as may be prescribed under the laws.
Q.
What GST Rate will apply on Dish Wash Bar, Tub and Liquid
A.The GST rate applicable on these products would be 18%.
Q.
How will GST impact the middle class strata?
A.It will have a positive impact on the middle class strata as, many essential goods have been kept at Nil tax rates products have been zero rated (such as edible vegetables, food grains etc) and even lower rate of taxes say 5% on cotton fabrics, textiles, puja samagri etc
Q.
I am a stage 2 dealer under excise and I purchase the goods with excise duty and pass the same amount when I sell the same goods. AM I allowed credit of excise duty on stock as on 30-6-17 or do I have to add the excise amount in cost price of goods?
A.Under Section 140(3) of CGST Act, Second stage dealer can avail the credit excise duty on stock as on June 30, 2017 provided he has a duty paying document and subject to other prescribed compliances.
Q.
We are publishing a registered newspaper/magazine since 1985. The main source of income is from subscription of magazine and advertisement charges. Should we register ourselves in GST? If yes, what is the process?
A.Under GST regime, sale of space for advertisement in print media is taxable at the rate of 5% under forward charge. Therefore, you need to obtain registration if the turnover crosses the prescribed thresh\hold limit. The process of obtaining registration will be known on opening of GST portal on June 25, 2017
Q.
In an EPC job, we buy several equipment that we do not sell as individual items but as project, what will be the implications of GST on us? Â
A.The tax paid on procurement of such equipment would be available as credit.
Q.
What will be the impact of GST on small traders?
A.Small traders will not be required to take any registration under GST if their aggregate turnover is below 20 lakh rupees (10 lakh rupees in case of special category States). However, if the aggregate turnover exceeds this limit, they should obtain the registration and undertake the prescribed compliances. They could also consider taking registration under the composition scheme if they fulfil the prescribed criteria. However, it is important that necessary awareness about the GST law is also provided to them. Another aspect is that under GST regime, industry will be driven to transact business with registered traders to claim credit and manage their compliances.
Q.
What is the rate of GST on electrical brass components used as raw material in electrical goods manufacturing?
A.GST rate on electrical brass components is likely to be 18%. Exact rate would depend upon the product specific HSN classification.
Q.
Other than composite mills, textile traders are facing problem of inverted tax structure till fabrics. What is the solutions to avoid this?
A.In case of inverted tax structure, the textile traders can consider claiming refund of accumulated input tax credit.
Q.
Will GSTN provide the suppliers with a reconciliation data with reasons for mismatch between the inward and outward invoices or it expects the supplier of outward goods to reconcile the mismatched records at their end?
A.The mismatch report would only highlight the transactions which do not match. Rest of the reconciliation would be done at the assesseeâs end.
Q.
Are the Basic Customs duty rates to change once GST is implemented?
A.No. GST does not affect basic customs duty.
Q.
Under the GST regime what will happen to the duty paid unsold stocks that are more than 6 months old? Â
A.Credit of duty paid on such stock can be taken subject to fulfilling eligibility and other conditions prescribed in section 140 of the CGST Act and the GST Transition Rules. In case such credit is availed under section 140(3), one of the important conditions prescribed in the rules is that the scheme is available for only six tax periods i.e. six months.
Q.
Under GST, can the manufacturer take input of balance excise CENVAT and VAT?
A.Yes. He can, under the respective transitional provisions i.e. Section 140 of the CGST and SGST Acts.
Q.
GST on cotton freight by road transport, will the payment be full ITC?
A.Services of Goods Transport Agency (GTA) will be subject to GST rate of 5% subject to restriction on availment of input credit by the service provider. Further, services of GTA in respect of transportation of goods by road is covered under the category of reverse charge services wherein 100% GST liability has to be discharged by the service recipient. Further, input credit of such GST paid under reverse charge can be availed subject to fulfilment of conditions to avail input credit.
Q.
What is the last date for registration of GST enrollment?
A.GST registration will re-open on 25th June onward and will continue for 3 months.
Q.
What will be the GST rate for the Pharma companies that are presently operating in excise free zone like Himachal Pradesh?
A.Under GST, same tax rates would prevail for products manufactured by Pharma companies operating in excise-free zones presently and same products manufactured by companies located in other areas. The tax rates would be the same. However, the intention of government is to protect the benefits enjoyed by the units in excise free zones for the balance part of their exemption period. Accordingly the units availing area based exemption benefits would be liable to pay GST after adjusting the input tax credits and claim refund of such GST paid.
Q.
Duty credit scrips – export incentives like meis, focus etc, no HSN code appears in the GST schedule. Will sale of these transferable scrips be subject to GST? If yes what will be the rate applicable. Â
A.This will need to await further clarifications from the Govt.
Q.
What is the GST rate on revolving chair and HSN code? Â
A.This is a product specific question requiring specific classification to be completed, however the rate on furniture is 28%
Q.
Is GST to be paid on free samples given for product trials?
A.Yes, GST is payable on free samples.
Q.
What is the impact of GST on Logistics?Â
A.It would be good as movement of goods across the country would be seamless
Q.
Verticals; what are the basis of deciding that they are different? Â
A.It would depend on the company and its products, but AS 17 can be a good starting point.
Q.
What are the opportunities for the micro small sector under GST? Â
A.They will be able to generate more business if they register and pay GST as large businesses can then deal with them.
Q.
What is the GTS rate for detergent powder, cake, dish bar and other similar products? Â
A.These are to be taxed at 28%, however specific product classification is recommended
Q.
How will small cinemas with tickets for less than Rs. 100, and annual turnover of Rs 10 lac benefit? What is the revised tax rate if turn over is below Rs. 10 lac in Uttar Pradesh? Â
A.The threshold limit for GST all over India except North Eastern states is Rs.20 lacs. The GST rate where tickets are priced below Rs.100 is 18%.
Q.
The present service tax on installments to be paid to a builder by a flat owner is 4.5% plus VAT of 1%. It is increased to 12% from 1st July 17. Can flat owners only pay ST of 4.5% before 30th June 16 and pay the actual installment after 1st July 17? Can the builders credit this tax to government on the future amount to be received, presuming that the builders have postponed installments, but received ST in advance?
A.The onus of service tax arises in case of continuous supply of service such as construction upon completion of an event mentioned in the contract which requires the service receiver (flat owners) to make certain payment to the service provider (builder). If this date is triggered before 1st July, you can pay service tax under old rates of 4.5%. However, if this date is not triggered, payment can be made as advance and the date of payment of such advance would be the point of taxation and tax rate shall be as on date of payment of advance.There is no provision where tax is triggered without payment of advance and the builder is not obligated to connect tax without collecting the installments.
Q.
There is talk of multiple filing of GST returns – 37 annually. Can you explain? What is the tax rate to be levied restaurant food and other eateries and bars?
A.GSTR 1 outlining outward supplies, GSTR 2 outlining inward supplies and GSTR 3 are to be filed on 10th, 15th and 20th of every month That is 3 returns a month amounting to 36 returns a year. In addition, annual return has to be filed once a year totaling to 37 returns a year for a business. Where no AC in the restaurant and no liquor license, tax is 12%. Where there is AC or liquor license, it is 18%. Where food/drinks are supplied in an AC restaurant in a 5 star hotel, rate is 28%.
Q.
For providing services, I receive advance payment. If I raise invoice as soon as I receive money but before providing service, can issue of receipt voucher be avoided?
A.The wording of the Act is very clear in this regard. A registered person shall, on receipt of advance payment, issue a receipt voucher. Raising an invoice at time of receiving such advance would not help avoid raising a receipt voucher and the same shall have to be issued.
Q.
What if as a consumer I am not provided a bill, as is case of most stationary and plywood shops?
A.GST means every sale has to have a bill (except those exempt items). Ask the vendor for a bill (tax invoice or similar document). Please note that supply of taxable goods by an unregistered supplier to a registered person is taxable under reverse charge under GST. Therefore, if you are a registered person, you would be required to discharge the GST liability.
Q.
For municipal solid waste power plant equipment like boilers, turbines and auxiliaries what will be GST for supply items and what will be GST on construction of plant? Can credit be taken on input tax on CGST to SGST?
A.If the boiler/turbine is movable and not permanently attached to earth, then its construction would be a composite supple which would be decided by its predominant characteristic. Since the intention for construction of plant is to have goods, the GST on its supply would be treated as supply of goods. You can refer to chapter 84 for exact classification. It does appear that your supply would be taxed at 18%. Input tax credit for CGST cannot be taken towards SGST and vice-versa.
Q.
Can input tax be used while purchasing fixed furniture for the office from a registered dealer?
A.Yes. Input tax credit can be used when purchasing office furniture from registered dealer under GST.
Q.
What will be the tax rate for IT consulting services (Manpower Placement and IT outsourcing)? The current rate is 15%
A.18% with full input tax credit.
Q.
As timber traders, under GST, other than GST do we also have to pay Krishi Udpadan Mandi tax and forest tax that we are currently paying?
A.Yes. You would need to pay Krisihi Udpadan Mandi tax and forest tax in addition to paying GST as these levies are not subsumed under GST.
Q.
What is GST rate for detergent bar and cake?
A.Detergents would be taxed at 28% falling under tariff 3402.
Q.
What is the rate of GST to be paid by a buyer purchasing an under construction building?
A.It is a debatable issue. GST rate on construction is 12% and the developers are asking for the same from customers from 1st July. However, GST on construction should be tax neutral for customers- meaning the tax burden should be about the same as current service tax which should be around 4.5%. This is however not happening as builders are claiming they would not be eligible for credit on inputs for already constructed projects. So for new projects, GST will be 12% but benefit of Input Tax credit is to be passed on in full.
Q.
GST on sugar is 5% when we purchase it from sugar mills. When we pack the sugar in 1 kg-10 kg poly packs with our brand name will it attract 18% GST rate of packaged food or 5% of sugar?
A.The additional procedures undertaken when packing the sugar has not been mentioned. If the essential nature of sugar stays the same, then it will be taxes @5% under the category of sugar.
Q.
I import AC and TVs in CBU from China. Will it get costlier or cheaper after GST get implemented?
A.Air conditioners being taxed at 28% under GST is set to become more expensive. Depending on your state, prices of TV which is taxed at 28% might come down marginally or might be marginally expensive.
Q.
When can an importer dealing in NIL GST product start to apply for a fresh registration? He is currently not registered with VAT.
A.Fresh registrations are expected to commence from 25th June, 2017.
Q.
Stock lying on 30.6.17 credit of excise and VAT, will we be eligible for full credit or not.What material needs to be in stock for us to be eligible to take credit for CST, when CST was paid on purchase before 1.7.17?
A.If you are a registered manufacturer, you would be allowed to take full credit of stock which is invoiced within one year of 1st July, 2017. CST shall be allowed as long as required documents and forms with respect to CST are available.
Q.
Why is job work not being treated as internal supplies?
A.Under GST every distinct entity is treated as a separate. Job worker being an independent, separate entity- the process of job work cannot be treated as an internal supply.
Q.
What is the registration process for traders not registered in VAT or service tax? How is the turnover of Rs.20 lakh calculated for registration under GST?
A.Fresh registrations shall be made in Form GST REG-01. Currently, the portal is due to open from 25th June for fresh registration. Turnover of 20 lakhs is calculated as- Taxable values of all aggregate supplies (excluding supplies on which tax is paid on reverse charge) +exempt supplies + export of goods or services or both +Inter state supplies but excludes central tax, state tax, union territory tax,integrated tax and cess.
Q.
Can fabric producers apply for refund of unused input credit under Sec 54 3 (ii) of the CGST ACT?
A.No overflow of credit is allowed for the textiles and garments industry. Meaning no refund can be availed for unused input credit for these industries. Therefore, you as a fabric producer cannot apply for refund of unused input credit.
Q.
How will closing stock as on 30 June be carried forward to 1 July? What will be the treatment in the books of accounts, how one can take credit for goods in hand?
A.There will be no accounting treatment for closing stock carried forward from 30th June to 1st July. Where CENVAT is not allowed to be carried into the GST regime the same shall be written off in the books and be treated as an expense. Where CENVAT is eligible to be carried into the GST regime, the same shall be transferred to a new account- CGST/SGST/IGST credit. You can take credit by filing Form GST TRAN 1.
Q.
Can principal manufacturer get finished good manufactured from a job worker by adopting a procedure similar to Rule 10A central excise valuation rules?
A.Unlike in Rule 10A, in case of a job work transaction, where the principal manufacturer and buyer of the goods are not related and the price is the sole consideration for the sale, in every case, the transaction value will be based on actual transaction value of the transaction. Where these goods are transferred from Job workerâs premises to own depot or sales premises, it would be a transfer to related party, the value declared in the invoice will be the deemed open market value of the goods. In such cases, this value would be the transaction value.
Q.
We have excess ITC of State VAT due to high percentage of Sales under 2% CST. As refund of ITC of state VAT takes years to get, should we opt to carry forward the credit to GST? If yes please explain the process on how to adjust this SGST with the SGST/CGST/IGST.
A.You must opt to carry forward this credit to GST. Once you have done that, SGST can be adjusted with SGST liability and IGST liability in that order.
Q.
Being a service provider, my annual turnover is below 10L. Do I still have to pay GST?
A.Since your annual turnover is under 20 lakhs, you would be exempt from paying GST unless you are under reverse charge.
Q.
Having stock worth approximately Rs.50 lakh on June 30, VAT been paid, how I can get set of from July 1?
A.Just make sure you have proper documentation as required under Form GST TRAN 1 and make sure you file GST TRAN 1 by 28th September,2017.
Q.
VAT has been paid on stock of rupees one lac as on 30 June 2017 at 12.5%. In what period do I have to sell this stock after 1st July? When I sell this stock will I be eligible to claim input credit of 12.5%?
A.No time limit has been prescribed for sale of this stock under GST. You can sell them as per your business consideration. If you have complied with requirements of Form GST TRAN-1 by 29th September, you can claim input credit of 12.5% when you sell it.
Q.
How to put invoice number in invoice? How will the invoice reference number generated? What is difference between two?
A.As per the invoice rules released by GST Council, every GST invoice to mandatorily bear a unique serial number (such a requirement exists under present laws).There is no concept of invoice reference number under final GST Rules and Acts.
Q.
What will be the impact of GST on foeign investors?
A.GST regime aims to simplify the indirect tax framework in India and reduce the uncertainties in taxation making India a better avenue for investment.
Q.
If sale is made in VAT and sales return is made after implementation of GST, how to be produced credit note to the customer?
A.In case, goods sold under current regime (not prior than six months from go-live ) are returned by an unregistered person within 6 months after go live, refund of taxes paid earlier available to the original supplier.If goods are returned by a registered person, return would be deemed to be a supply by the buyer to original supplier. In the instant case, the registered person returning the goods would be required to issue an invoice for charging GST on such a deemed supply.
Q.
What is the GST rate for Ayurvedic Medicine?
A.Generally, ayurvedic products such as medicament are proposed to be taxed at 12% under GST. However, specific rates for different ayurvedic products would need to be looked at separately.
Q.
What is the GST rate applicable on match box?
A.- Hand made safety matches (36050010) – 5%- Other matches (3605) – 18%
Q.
Job processing like weaving of fabric from yarn falls under which slab?
A.Job work in relation to Textile Yarns (other than man-made fibre/filament) and textile fabrics shall be taxed at 5% with full Input tax credit benefits (rates amended by 16th GST council meeting on Sunday 11th June, 2017). Any other garment processing job work to be charged at 18% GST.
Q.
What is the GST rate for briquettes made from agro waste?
A.No specific classification available. Depending on the dominant nature of the agriculture waste, to be classified under its residual product.
Q.
What tax rate will be applicable for LT copper/aluminium cables ?
A.Copper cables (7413)= 18%. Aluminium cables (7614)= 18%.
Q.
If liability to pay freight is of the recipient and the supplier pays it on his behalf and recovers it from him subsequently, should this freight amount be included in the transaction value? Also, in the same case, if the supplier recovers fix amount of freight per kg from the recipient, would this be included in the transaction value?
A.If the supplier is paying freight on behalf of the receiver, then the same would be included as part of transaction value irrespective of the fact that the freight is being reimbursed later on.
Q.
We are generating wind energy and supplying to the grid at present. Will this be treated as supply once GST is applicable?
A.Transmission or distribution of electricity by an electricity transmission or distribution utility is specifically exempt from GST. Depending on what grid you supply to, you can claim this exemption.
Q.
How is the GST regime going to impact the OTC industry?
A.By OTC, we assume you mean Over the Counter pharmaceutical industry. We are not sure what aspect of the OTC industry you are looking to discuss with respect to GST. GST does not distinguish between regulated pharmaceutical products and OTC.
Q.
Why there is multiple levy of taxes in GST when the govt says one nation, one market, one tax? (There are 3% on gold, 5%, 12%, 18%, 28%, 1% for composition tax payers)
A.India is a vast,complex economy. A single rate would not justify the volume and range of products and industries in a diverse country like India. Taxes are to be levied based on multiple factors such as sensitivity to price , stage of the commodity in the consumption value chain, input factors such as input tax credit etc. For example, a higher tax rate(say 28%) of goods which are consumed by the common man, would adversely affect the common mass. On the other hand, tax on discretionary spending such as on entertainment, luxury goods can be higher as they are consumed by a different socio-economic strata. Some industries such as transport by air,road and railways have a major input factor of petroleum on which no input credit is available. Hence their rates have been kept in a lower tax tier
Q.
Will there be any abatement in land cost for flats booked? GST seems to have doubled tax incidence on flats.
A.No abatement for land cost prescribed. However, flat prices are expected to be reduced on account of developers being allowed full Input Tax credit on inputs as opposed to current law of prescribed abatement on account of such inputs rather than credit of the actual taxes paid on inputs.
Q.
Why is stock clearing necessary before GST comes in and how will the price of existing goods change after GST which currently are purchased/sold on VAT/excise duty? How to claim taxes later?
A.Stock clearing is not always necessary. It depends on whether the GST rate for your industry has increased or decreased and whether you can claim input tax credit for existing stock. Where a business cannot claim credit under GST for any input taxes paid earlier the same has to be added as part of the cost of the goods which increases price of existing goods. To claim taxes, you must file return in format GST TRAN 1 by September 28 (assuming 1st July GST implementation) mentioning tax particulars of existing stock as on 30th June.
Q.
How will GST effect a multibrand smartphone and tablet dealer? Stocks amount to Rs 45 lakh.
A.If the question is in relation to GST compliance, we would recommend opting for composition scheme if intra-state sale is directly being made to retail customers and annual turnover less than 75 lakhs.
Q.
What will be the GST rate for serving liquor in a bar?
A.The particular service has various sub-categories. You have not mentioned enough information. However assuming drink not supplied in a 5 star hotel, rate would be 18% for supply of drink in a restaurant with full Input tax credit benefits.
Q.
With regard to transition rules for imported goods, will we be eligible for input tax credit of both CVD and SAD paid on the said stock? If yes, up to what extent?
A.Input tax credit of both CVD and SAD would be allowed under transition provisions. If you are a registered manufacturer, then the entire amount.
Q.
Can we take input tax credit for investment made on a warehouse building?
A.No input credit allowed on goods or services received by a taxable person on construction of immovable property on his own account. Therefore, input tax credit shall be available for investment in warehouse building.
Q.
Is GST applicable for interstate transfer?
A.Yes. GST is applicable on self transfers in an interstate supply.
Q.
What would be the tax rate for garment processing on job work?
A.Job work in relation to Textile Yarns (other than man-made fibre/filament) and textile fabrics shall be taxed at 5% with full Input tax credit benefits(Rates amended by 16th GST council meeting on Sunday 11th June, 2017). Any other garment processing job work to be charged at 18% GST.
Q.
Whether transfer pricing assessment by TPO will affect the valuations under Import and Export transactions for primary adjustments and secondary adjustments.
A.The Income Tax Act and Goods and Services Tax are for most part mutually exclusive of each other. Transfer pricing is a function of the Income Tax Act. The same will not affect valuation of import and export transactions under GST.
Q.
What will be the impact of GST on construction industry, mainly works contract?
A.Now works contract on construction of immovable property shall be treated as a composite supply of service as opposed to current practice of treating it partly as goods and partly as services. Its a huge shift for the sector. Construction of building for sale to a buyer, wholly or partly to be taxed at 12% (where value of land is included). However, cost of residential and commercial property are expected to come down on account of developers being allowed full input credit on inputs. To be noted input tax credit not available for works contract service when supplied for construction of immovable property except when the subcontracting such works contract.
Q.
We manufacture goods in Bangalore and supply them to Bawal and Gurgaon. The goods are stored at our transporter’s warehouse to meet customer schedule. Can the same be continued or do we need our own warehouse to facilitate our customer requirement? If the latter is needed, when will a GST portal be is available for assistance?
A.The same can be continued. GST does not differentiate between use of owned warehouses and use of warehouses of others. In both cases GST on supply of goods to warehouse would be leviable.
Q.
If I sell on e-commerce platform, should the mediator (amazon, flipkart etc) be billed or the end consumer? Does it really make any difference?
A.If the consideration is being collected by the e-commerce operator (amazon, flipkart etc) from the customer, then the supplier must bill the e-commerce operator and include particulars such as Name, address and GSTIN of the e-commerce operator.
Q.
When can we expect the HSN Code List to be updated by the government?
A.We are hoping the list is updated before 1st July,2017 (date of implementation). However, expect the updation to happen closer to 1st July.
Q.
In order to get credit under GST, do the expenses incurred on travelling, hotel stays or transportation bills have to be put under the firm’s name?
A.Yes. For Input credit to be availed, tax invoice issued must contain Name, Address and GSTIN of the recipient. Your expenses incurred must be under your firmâs name.
Q.
What is the GST rate for fire extinguishers?
A.Fire extinguisher has been proposed to be taxed at 28 percent under GST.
Q.
Taxable services(brokerage) is less than 20 lakhs, but services a few NRI clients. In such a case is gst registration mandatory?
A.Under GST, brokerage services provided to any NRI by a person located in India qualify as inter-state supply. Further, any person making inter-state supply of goods or services is mandatorily required to obtain registration even if his threshold is below 20 lakhs. Therefore, supplier providing such brokerage services is required to be registered under GST law.
Q.
With respect to VAT, there is a provision for filing revised returns, whereas under GST, there is no such provision. How can one rectify the errors without filing revised return?
A.Under GST, your understanding is correct that there is no provision for revision of GST return. However, as per return formats released by GST council, there are separate fields for making amendment, if any to information submitted wrongly filed in the previous return(s).
Q.
Will the increase in tax slab for granite and marble lead to a drop in sales and margin?
A.Increase in rate may not necessarily lead to drop in sales margin since under GST regime there would be enhancement of credit base. Hence, this would need to be determined on case to case basis.
Q.
Person A in Mumbai places an order with Person B in Chennai to supply certain goods to Person C in Chennai. Will this transaction come under intra state sale or inter state sale? How will this transaction be taxed(IGST/SGST/CGST)?
A.Under GST law in case of bill to ship to transactions, place of supply of goods is determined basis location of bill to party. Accordingly, in the present case, the place of supply of goods would be location of Person A i.e MumbaiFurther, since location of supplier i.e Person B in Chennai and place of supply i.e Mumbai are in different states, such supply would this transaction would qualify as inter-state supply and attract IGST.
Q.
Is it true that a company having head office in one state and currently working with one PAN number one service tax Number with operations/ offices in 10 states has to register and get GSTN number in each state and annual 10 (state) x 12 month x 3 monthly return and one annual return has to be filed. Plus TDS and income tax return (these two will be state wise or consolidated?)
A.Under GST law, every company has to obtain a GST regime in every State from where supply of taxable goods and services is effected. Further, for each registration, a registered person shall be required to file 3 returns per month and one annual return. This would be in addition to TDS and income tax return which needs to be filed on PAN India basis presently by the company.
Q.
Will the rules relating to export of services on execution of bond has been made public?
A.Rules relating to export of services without payment of tax under execution of bond has not yet been released by GST council.
Q.
Once GST is comes into use, will purchasing from an unregistered dealer be cheaper to the final consumer?
A.An unregistered person would not be allowed to claim input credit of goods and services purchased by him against output liability. On the other hand, an unregistered dealer would not charge GST on goods sold by him. Therefore, it is not necessary that in every case goods purchased from unregistered dealer are cheaper.
Q.
What will be the GST rate applicable on civil contractors?
A.As per GST rate schedules released by GST council, a civil contractor constructing complex, building, civil structure or part thereof for sale to buyer is required charge GST at rate of 12 percent. Further, such person is required to avail full input credit of goods and services used in provision of such construction services. However, important to note here that a person receiving such construction services would not be eligible to avail credit of such services unless such services are used for construction of complex, building or civil structure.
Q.
As a trading company can we sell a product without payment of GST under a bond to exporters for export or can we claim a refund after the export by submitting the proof of export received from exporter?
A.Under GST, goods and services can be supplied without payment of GST under a bond only in two conditions:- In case of export of goods or services – Supply of goods or services to Special Economic Zone (‘SEZ’) developer or SEZ unitthere is no concept of penultimate salesIn this case, since trading company is not exporting goods but selling goods to exporter, IGST would apply on sales made by it and no would refund would be available.
Q.
Is it possible and wise to purchase goods from an unregistered dealer, who does not deposit GST under reverse charge mechanism with an intent not to claim tax rebate? This will reduce the workload ;will have no impact on URD dealer; and will reduce inflation. Please advise.
A.Under the GST Law, where any procurements are made by a registered dealer from an unregistered person, the registered person making the procurements would be liable to pay tax under reverse charge.The above is not an option but is an obligation under the GST Law. Even if the registered dealer does not claim credit, there would still be a liability to pay tax under GST.
Q.
Please elucidate on costing under GST.
A.Under the existing indirect tax regime, credit of various taxes/ duties are not available to certain categories of taxpayers. For example, a service provider is unable to claim credit of VAT paid on procurements made by him. Therefore, such taxes currently become costs. Under GST, all categories of registered taxpayers would be eligible to avail credit of taxes paid on procurement and accordingly, tax paid on procurement would no longer become a part of the cost
Q.
What will be status of goldsmiths under GST ? Will they be treated as contract manufacturers or as job workers? What will be the applicable GST rate?
A.There is no concept of ‘contract manufacturer’ under the GST Law. Further, ‘job-worker’ has been defined as a person who undertakes any treatment or process undertaken by a person on goods belonging to another registered person. Whether a person qualifies a ‘job-worker’ under the GST Laws would need to be determined on a case to case basis.Under GST the making charges for jewellery have been proposed to be taxed at 5 percent. Further, the tax rate of 3 percent has been proposed on supply of gold jewellery
Q.
In case of jewellery trading, is purchase of old gold from customers chargeable to GST under section 9(4) of CGST Act on Reverse Charge Basis?
A.Under the GST Law, where any procurements are made by a registered dealer from an unregistered person, the registered person making the procurement would be liable to pay tax under reverse charge
Q.
A company has 2 jewellery retail showrooms, one in Delhi and the other in Kolkata. A Delhi customer pays some advance for purchase of jewellery at the Delhi showroom itself. This customer then shifts to Kolkata. After 3 months he comes to the Kolkata showroom and wants to adjust his advance by purchasing the jewellery. What will be the GST implications as both the showrooms are registered under the respective state’s GST.
A.Under GST, both the showrooms in different States would be deemed to be distinct taxable persons. Hence, for tax payment purposes, advance paid at one location cannot be adjusted against the tax liability at another location.Thus, the Kolkata showroom would be required to raise an invoice of the full value of jewellery being purchased and tax would also be payable at the full value even if such showroom allows the customer to pay an amount after reducing the amount of invoice paid. The Delhi showroom would be required to issue a refund voucher as no supplies would be made by the Delhi Showroom against the advances received.
Q.
Is it true that government was planning one tax system for the past 13 years?
A.In 2000, a committee headed by the then West Bengal finance minister Asim Dasgupta was set up to create the GST structure and to determine how to attain a uniform tax system in India.
Q.
As an excise registered dealer, can I take the entire excise amount credit on my stock in the GST regime?
A.GST law allows a dealer registered under the CGST Act, 2017 to take in his GST electronic credit ledger, the amount of CENVAT credit carried forward in his return for the period ending on the day preceding the day of GST coming into force.
Q.
Billing to SEZ units needs to be taxed under GST or HOE?
A.Under the GST Law, supplies made to SEZ would be treated as zero-rated supplies. A person making zero rated supplies would have the following options:- Making supplies without payment of IGST by furnishing Bond/ Letter of Undertaking and claim refund of input tax credit;or- Making supplies on payment of IGST and claim refund of IGST paid In cases where any goods are removed from SEZ unit to DTA, the Bill of Entry procedure under the Customs Act would continue even under GST
Q.
For export warehouse under existing rule 20 the duty is NIL, can we expect to continue the same in GST regime?
A.As per our understanding of the current GST laws, there is no concept at this stage of an export warehouse. Any transfer of goods between branches in different states including warehouses having separate GSTINs are expected to attract GST.Note though that the export of goods should be zero-rated, subject to satisfying all the stipulated zero-rating conditions.
Q.
If we have interstate purchased stock(excise duty 12.5% +cst 2%) during transition, will we be eligible for input credit.
A.Under current rules the composition scheme cannot be opted for in cases where the supplier is engaged in supplies of goods which are not leviable to tax under GST.a) Credit of CST would not be eligible under GSTb) A person registered under GST laws would be eligible to avail full credit of central excise duty of 12.5% where tax invoices or tax paying documents (not older than 12 months) are available, subject to the following conditions:⢠Such inputs are used for making taxable supplies under GST⢠Credit is available on such stock under GST regimec) However under current rules too note that a person registered under GST laws, but not in possession of any tax invoice or duty paying document, shall be eligible for credit as follows: â 60% of central tax if rate is 9% or moreâ 40% of central tax in other casessubject to these conditions:â This scheme is available to traders (a taxpayer may not registered with central indirect authorities but may be registered with state indirect tax authorities)â The scheme shall be available for 6 months from the appointed date which implies that inputs in stock will be required to be sold within 6 months from implementation of GSTâ Such goods were not wholly exempt from central excise duty or were not nil rated â Documents for procurement of such goods is available with the taxpayerâ The taxpayer availing of this scheme submits a statement in FORM GST TRAN â 1 at the end of each of the six tax periods during which the scheme is in operation, indicating details of supplies of such goods effected during the tax periodâ The stock of goods on which the credit is availed is so stored that it can be easily identified by the taxpayer.
Q.
By a retail grocery store proprietor, both exempted as well as non exempted goods are sold. Large portion of it is exempted. So if the composition scheme is opted, is 1% GST to be paid on all the supplies including exempted?
A.Under current rules the composition scheme cannot be opted for in cases where the supplier is engaged in supplies of goods which are not leviable to tax under GST.
Q.
Does the opening stock need to be sold within 90 days to claim input credit?
A.Any person registered under GST laws should be eligible to take full input tax credit carried forward in the last return under the existing framework. There is currently no such condition to sell the stock within 90 days.However note that a person registered under GST laws, but not in possession of any tax invoice or duty paying document, shall be eligible for credit as follows: â 60% of central tax if rate is 9% or moreâ 40% of central tax in other casesSubject to these conditions:1. This scheme is available to traders (a taxpayer not registered with central indirect authorities but who may be registered with state indirect tax authorities).2. The scheme shall be available for 6 months from the appointed date which implies that inputs in stock will be required to be sold within 6 months from implementation of GST.3. Such goods were not wholly exempt from central excise duty or were not nil rated 4. Documents evidencing procurement of such goods is available with the taxpayer5. The taxpayer availing of this scheme submits a statement in FORM GST TRAN â 1 at the end of each of the six tax periods during which the scheme is in operation, indicating details of supplies of such goods effected during the tax period6. The stock of goods on which the credit is availed is so stored that it can be easily identified by the taxpayer.
Q.
How would the stock on which the party has paid CST be affected?
A.Under our understanding of the framework as it stands now, credit of CST is not available in current regime. Hence, there would be no carryforward of CST credit to the GST regime.
Q.
Will GST rates will be applicable on imports also?
A.Yes, GST would be applicable on imports as well as it would subsume CVD and SAD.
Q.
We are merchant trader we purchase from China and export it directly. Whether gst is applicable?
A.This would need to be interpreted in terms of the specific contract and the place of supply rules as the taxability would depend on the facts of the specific transaction.
Q.
Is a Kirana merchant selling both taxable and tax free or zero rated good eligible for composition scheme?
A.There is no distinction between taxable and tax free goods in computing the threshold limit for eligibility under the composition scheme and hence the kirana merchant would need to consider his total turnover.
Q.
What will be the impact on Bullion traders with respect to Input Tax? Please explain in context of lack of excise component.
A.Bullion traders would be eligible to claim input tax credit on their purchases and wherever they pay GST on their expenses.
Q.
1. In case of a Gold Jewellery Trader, what is the GST Rate on Making Charges portion? 2. Will a Gold Jewellery Trader have to pay GST on reverse charge basis on Old Gold purchased from consumers as the consumers are unregistered GST dealers in this case?
A.There is no clarity as yet on the same and it would be better to await clarity on this aspect.
Q.
What would be the treatment of stock on 30 June, the impact on VAT and excise credit?
A.If the manufacturers invoice is available, then 100% credit would be allowed on the stock as on 30th June, otherwise 60% credit would be allowable.
Q.
1. We manufacture crude palm oil from palm oil fruit commonly called fresh fruit bunches (FFB). a) What is the tax bracket for FFB? b) What is the tax bracket for CPO which is 5% under AP gst? 2. We collect the fruit from the farmers at collection centers which are normally private weigh bridges by paying a fixed charge to the agent per tonne of fruit. Will this be considered a place of business. How are we to issue e-way bill for movement of the fruit?
A.”Other oil seeds and oleaginous fruits (palm oil fruit)of other than seed quality of CTH 1207 is taxable @5% under GST. Further, Palm Oil of CTH 1511 under GST is taxable @5%. In terms of draft eWay bill Rules(pending finalization), every registered person who causes the movement of goods of consignment value exceeding 50K from unregistered dealer (farmers in the present case) need to generate a eWay bill. The weigh bridge etc. are collection points but should not be place of business.Above are prima-facie views. These are business specific queries for which you may consult your tax advisor.”
Q.
We are in the distribution line for two wheeler spare parts, and receive an excise-able invoice from our company. What would be the input credit that we would get? Would we be bearing any loss on our existing inventory?
A.You would get the full credit of excise duty as reflected in the excise invoice. Based on this you could determine the impact.
Q.
A client did not file VAT return from last 2 quarters, and his commodity was exempted under VAT law. As per the GST, there is a levy of 5% on his product. Can the client claim ITC as per GST on his product as on 01.07.2017?
A.Yes in terms of Section 140(3) an assesse is eligible to take credit provided he has tax paying documents under existing laws.
Q.
Under GST, what does registered brand mean?
A.Under GST law registered brand is not defined till date. While this has been used in rate schedule. Trade and Merchandise Marks Act, 1958 (43 of 1958) can be referred to for guidance.
Q.
What will be the difference between purchase of the same amount of grocery of RS 4000/- on 30/06/17 and on 01/07/17?
A.Purely from a tax perspective, we donât see much impact.
Q.
A company registered in Delhi organises events in multiple states, do it require to register itself in every state where the events are held?
A.No, the company will not be required to take registration in multiple states, provided the services are provided from Delhi. The company will be required to charge IGST from Delhi and place of supply will be the respective state where the event is organised.
Q.
Is it better to purchase a car under the Rs 7 lakh right now or after 1st July?
A.The proposed rate of GST for motor vehicles does not vary according to price; there are different rates of the GST compensation cess applicable depending upon length and engine capacities of vehicles. The pricing decisions of companies are based on many factors, in which the applicable tax is one factor. Hence one cannot reliably predict the trend of prices before or after July 1.
Q.
If goods like cement, steel etc. are purchased and given to a contractor, what is GST assessable value of the contractor?
A.The values of such materials will have to be included for the purpose of arriving at the taxable value.
Q.
What are the tax to be merged and replaced by GST? Which of these are especially relevant for a coal trader?
A.The taxes merged into and replaced by GST are:-Central levies â¢Central excise duty â¢Additional excise duties â¢Excise duty levied under the Medicinal and Toiletries -Preparations (Excise Duties) Act 1955â¢Service taxâ¢Additional customs duty, commonly known as countervailing duty (âCVDâ)â¢Special Additional Duty of Customs (âSADâ)â¢Central Sales Tax (âCSTâ)â¢Central cesses and surcharge on supply of goods and services-State leviesâ¢VATâ¢Entertainment tax (except levied by local bodies)â¢Luxury taxâ¢Taxes on lottery, betting and gamblingâ¢Purchase tax â¢Octroi â¢Entry taxâ¢State cesses and surcharge on the supply of goods and servicesFor coal traders, the subsumed tax that is possibly relevant would be the State VAT.
Q.
What will be the implications of GST be on Mutual Fund Advisors?
A.The mutual fund advisors would be liable to GST in a manner similar to the current service tax regime. However, as with other sectors, there will be higher compliance burden under the GST regime, with higher frequency of returns as well as submission of invoice level details as prescribed. For small advisors operating within a state, the threshold limit of registration will go up from the present Rs. 10 lakhs to Rs. 20 lakhs.
Q.
What will be the changes in work contract tax after GST is implemented?
A.Under the CGST Act, vide the definition in section 2(119), the definition of works contract has been limited to contracts for building, construction, fabrication, repairs etc. of immovable property, that involve transfer of property in the execution of contract. Hence contracts not relating to immovable property, such as for repairs, AMCs etc., which are in relation to movable property, will no longer be âworks contractsâ for the purpose of GST and will be treated as composite contracts. The GST Act specifically categorizes works contract as a service.
Q.
What will the sales return/credit note/debit note process be under GST?
A.The process of sales returns and any changes in the taxable value, tax amount etc. will have be regulated through the process of issue of credit and debit notes. The details of all credit/debit notes will have to be reported electronically in the prescribed returns for the respective month during which they have been issued and will have to contain the prescribed details. Detailed requirements in this regard may be seen in section 34 of the GST Act to be read with the Tax Invoice, Credit and Debit Notes Rules.
Q.
A house was booked from a builder in 2011 and 95 % of the booking amount paid in 2015. As per the agreement l was to attain possession within 2 year but I did not get the possession till this date. The builder asks for the balance amount by June otherwise 24 % CST is to be paid on the entire booking amount. Is the builder right?
A.No, the builder cannot ask for 24% of GST on the amount which as already paid to him, he can only ask for 12% or 18% of GST on remaining value of flat.
Q.
In a business of agencies, the closing stock is worth Rs. 10 lac. How will this amount be settled under GST?
A.In this case first it needs to determined whether the inventory is owned by agent or by principle, based on this decision credit is to be given to either agent or principle
Q.
How will the Government give refund on closing stock?
A.There is no process of refund any tax credit on closing stock, credits can only be carried forward under GST as per prescribed norms.
Q.
If X supplier from Maharashtra is billing to Y, who is also in Maharashtra but delivering goods to Y1 (Depot of Y with the same PAN number) in Madhya Pradesh. Which tax need to be charged(IGST, CGST or SGST)?
A.This is a concept of deemed supply, in this case X will raise an invoice on Y (as bill to party) by charging CGST + SGST and keep Y1 as ship to address. Once the goods reach to Madhya Pradesh, then Y will have raise an invoice on Y1 by charging IGST and this second transaction is called deemed supply.
Q.
If registered in Gujarat, and the supplier is paying rent in Maharashtra while the landlord is not register in Maharashtra, does the dealer from Gujarat need to register in Maharashtra to pay on RCM basis even if he is not doing business in Maharashtra?
A.If a taxable person of Gujrat is paying tax in Maharashtra, then assumption is that their business is in occupancy of such premises and in case landlord is not registered under GST, then such supplier has to get registered under Maharashtra to pay tax on rent paid under reverse charge, even though there is no business is operations exists for such supplier in Maharashtra.
Q.
1. Can manufacturers claim ITC on freight paid for raw materials? 2. Negative list of services on which ITC cannot be claimed. 3. Can manufacturing and trading activity can be done form the same premises?
A.1. Yes, under GST regime a manufacturer can avail the tax credit on freight paid by them.2. there is no negative list of services under GST, except medical services all other services are taxed under GST.3. Yes, a business can do manufacturing and trading activity from same premises. As per law they have to take single registration for both of them, but if the business verticals of both are different then a company may choose to opt for multiple registration.
Q.
How much GST (%) should a brand new job portal (read: online media company) should charge its advertising clients (read: employers & 3rd party recruiters) for listing their jobs online? The assumption is that the job portal will commence its operation on 1st July 2017 for the first time.
A.All kinds of advertising services are kept under 18% tax slab and hence a job portal shall also be covered under 18% GST. Date of start of business has no relevance of business. Only exception is that till 20 lakh turnover a company may opt not to register it for GST.
Q.
As contractors taking work contracts in various states, should we keep GST accounting state wise or according to our head office in Rajasthan.
A.Any person operating in more than one state, having turnover of more than 20 lakh in aggregate, has to take registration for all such states. This rule applies to works contract as well.
Q.
What would be the Deemed Credit Scheme for retailers and traders? We, traders will end up with huge inventory as on 30-6-2017; how to process our input tax credit, if we do not have duty paying documents?
A.As per Transitional credit rules, retailer and traders without any duty paying document, may avail credit of excise duty to the extent of 60% of tax amount charged as CGST, if the CGST on sale is more than or equal to 9% otherwise, 40% of CGST liability. For VAT similar rules are expected but as of now draft rules are still not available for most of the states.
Q.
What will be the position of the existing items’ input credit under GST regime?
A.The GST law allows the transfer of existing input tax credit or CENVAT credit carried forward in the VAT or Excise/ CENVAT credit return filed for the period immediately before commencement of GST. An alternative mechanism of carrying forward credit in respect of inputs held in stock on the date of transition to GST is also available provided that the duty paying document is furnished. Where duty paying document is not available with the dealer, deemed credit is available at prescribed percentages. Further, an optional scheme of transitioning the credits through Credit Transfer Document issued by the manufacturer of goods (where per unit price exceeds INR 25,000) is also proposed to be provided as per the draft rules.
Q.
What and all major changes can be expected after introducing GST?
A.Multiplicity of indirect taxes in India, would be simplified with most of the major central as well as state taxes getting subsumed under GST. Also, GST will result in broader tax credit base for traders, service providers and manufacturers. However, this would also bring in multiple compliance to be undertaken on a monthly basis with respect to various returns required to be filed.
Q.
Is it correct that prior to GST’s applicability there would be a 40-50% discount on electronic appliances?
A.The proposed GST rate on most of the electronic appliances is kept at 28 percent. This is similar to the effective tax rate on these products under present regime which is in the range of 26 to 28 percent as these are chargeable to standard rate of excise duty, VAT, CST and other local taxes. The dealers may be having certain stock during the transition to GST, on which tax burden under current regime would already be around 26 to 28 percent, with an addition of further GST at the rate of 28 percent. While the law provides for credit mechanism in relation to credits of stock getting transitioned to GST, the possibility of dealers wanting to liquidate as much stock as possible by way of discounts before GST comes in cannot be ruled out.
Q.
The final products, that are marine windows and doors, have raw materials like steel, aluminium, brass, rubber and glass. What will be GST rate for the said items?
A.Windows and door made of plastic, iron or steel have been proposed to be taxed at 18 percent GST rate. However, similar structures made of aluminium may attract 28 percent GST rate.
Q.
What would be the GST rates relating to bakery items, veg patties, khari, doughnuts, cream rolls etc.?
A.The GST Council has proposed for a GST rate of 18 percent on most of the bakery items. The rate may differ for few products but largely 18 percent would be applicable on most of the bakery items.
Q.
What would be the effect of GST on flour?
A.GST rate is proposed at 5 percent for flour in relation to sold under a brand name in a container. Flour sold loose is proposed to be Nil rated.
Q.
What would be the rate of service tax on rent under GST?
A.Renting of immovable property has been proposed to attract 18 percent of tax rate under GST.
Q.
What will be the GST rate applicable on imitation bangles made with iron?
A.The GST Council has proposed a rate of 3 percent on imitation jewelry which also includes bangles whether or not plated with precious metal.
Q.
How would GST effect the operations of a tin dealer?
A.A trader registered under VAT as a dealer faces credit restrictions on excise as well as service tax paid on the procurements. Since all these taxes would be subsumed under GST, a trader would be eligible for higher credit benefits.
Q.
Will the retail price be exclusive of GST, given that an unregistered dealer cannot charge GST?
A.Yes, the retail price would be exclusive of GST in case of sales by an unregistered dealer. However, for such sales, the recipient would be liable to pay tax under reverse charge mechanism by raising a self invoice.
Q.
This is regarding credit on closing stocks as on 30-06-2017. How would the input be allowed if we are traders and posses Tax invoice from distributors. Tax invoice replicates only local VAT 40% credit is a big confusion for all of us . Will we be eligible for the entire credit as applicable under CGST?
A.For traders, transition rules provide for 60 percent of the credit of central excise duty on goods which attract central tax (CGST) at the rate of 9% or more and 40% credit in case of other goods. In case IGST is paid on such goods credit shall be allowed at the rate of 30 percent or 20 percent respectively. Therefore, even if the tax invoice indicates only VAT the registered person under GST would be allowed deemed excise credit subject to fulfilment of certain conditions as per Transition Rules
Q.
What would be the custom duty(for import) of HDD machine for which we are paying 26.5% and we sell in India with 5% CST. Now that CST will be replaced by GST which is 18% the overall tax totals to 44.5%. How would this be implemented?
A.Basic Customs Duty (BCD) levied on imports would be continued to be levied under GST as well, for which no credit would be available. Other customs duties would be subsumed under GST and replaced by IGST for which input credit will be available.
Q.
How GST will impact the electricity charges either for domestic consumption or commercial purposes?
A.Service by way of Transmission or distribution of electricity by an electricity transmission or distribution utility is exempt under GST. However, the inputs/ capital goods used for generation/ transmission of electricity would be subject to GST.
Q.
What are the finalised rules on input credit for wholesalers?
A.There are no specific input tax credit rules for wholesalers under GST. A registered person under GST may avail input tax credit as per the provisions of Section 16 of the CGST Act and correspondingly respective provision under SGST Act of the states.
Q.
Regarding excise duty and CST input tax credits; is there tax credit in excise duty and CST or any one of these?
A.Excise credits can be transitioned to GST. Credit of Central Sales Tax (CST) would not be available under GST
Q.
We have practice of selling our Tea in rural markets through our own van working with ready stock, while loading tea in the van we are unaware of who will purchase how much quantity. How to go about preparing e-way bill/delivery challan?
A.As per draft rules, E-way bill is required only when the consignment value of goods exceeds INR 50,000/-. Also, final rules are yet to be issued.
Q.
Are both GST and Central Excise leviable on Tobacco?
A.Excise duty would be levied along with GST (in lieu of VAT) and also compensation cess. There is no clarity whether excise would continue under GST or not. However, till clarity comes, it can be assumed that Excise would continue to be levied on cigarettes.
Q.
Are doctors/hospitals required to get registered under GST? If no, what happens to the GST paid on their procurement/services.
A.Advance ruling to be filed before the authorities.
Q.
What are the basic advantages of moving from CST to GST?
A.For trade, GST will make for a simpler tax regime, multiplicity of taxes will reduce. It will mitigate the affect of cascading and double taxation. Taxes for exports will be neutralized more efficiently and the national market would see development. The need for distinction between goods and services would fade away. GST would mean fewer rates and exemptions. Consumers will benefit from reduction in prices of goods and services due to elimination of cascading. GST would make for uniform prices throughout the country and much needed transparency in the taxation system. Moreover, it increases employment opportunities.
Q.
What could be the likely impact of GST as far as MSME sector is concerned?
A.Presently, MSME sector has been enjoying excise exemption for turnover less than INR 1.5 crore. As a result of this higher threshold, this sector in most cases was unable to take benefit of any credits. With GST, this threshold has been pulled down to INR 20 lakhs (INR 10 lakhs for North Eastern States). This would result in availment of credit by MSME sector and also, other businesses transacting with these MSMEs would be in a position to avail credit with respect to GST to be charged by them.However, where the MSMEs are supplying goods to end consumers who are unable to take any credit, in such cases, the goods supplied by them may get expensive due to GST, since their current output taxes are restricted to only VAT (in absence of any excise duty implications).
Q.
It may not be possible for the small scale sector to completely automate the compliances under GST. Considering transaction level reporting and reconciliation in GST, how should the compliances be handled?
A.The Government has been continuously pressing for automation of compliances under GST with real time upload of data for timely reconciliations. If such level of automation cannot be achieved in house by an entity due to limited IT resources, there are alternative options available. GST Network(GSTN) has appointed various GST Suvidha Providers (GSP) and Authorized Service Providers (ASP) who have been entrusted with the task of assisting taxpayers for compliances and reporting under GST. These GSP and/ or ASP may offer various solutions that can automate the compliances by simple integration with the accounting software or ERP systems. GST law also provides that the taxpayers may obtain the assistance of Tax Return Preparers (TRPs) for filing GST returns and related compliances. Thus, even the small scale sector should be able to automate the compliances and report their data to GSTN accurately at convenient costs.
Q.
The retail entities may have significant volume of inventory on the date of GST transition which would have already suffered excise duty levied at manufacturing stage. Upon sale in GST regime, this inventory may attract a higher GST rate (say 28 percent). This may cause a huge loss on account of higher taxes on transition inventory to the traders. How can this problem be addressed?
A.GST law provides for transition of existing tax credits in respect of closing inventory on the date immediately before GST roll out. These tax credits can be transitioned to GST even by those persons who are presently not eligible for such credits. For instance, a trader who is not registered under excise law is not entitled for credit of excise duty today but still would be able to transition such credits to GST regime.Thus, it is recommended to have all duty paying documents and invoices in place in respect of closing inventory to substantiate the claims for transition of existing credits. Also, the law addresses the situation where duty paying document is not available with a person. In such cases, deemed credit scheme is expected to be available as per the draft GST transition rules.
Q.
Whether increase in tax rates as compared to existing service tax or VAT rates should be seen as direct increase in tax burden on the consumer?
A.A marginal increase in tax rate for any commodity or service under GST regime vis-Ã -vis existing tax rates may not result in commensurate increase in tax burden for the end customers. This is on account of various inefficiencies in the current indirect taxation system which are expected to be done away with GST. Presently, there are hidden tax costs due to cascading of taxes, non-availability of input tax credits on several items, application of multiple taxes at different stages of supply chain, reversal of VAT credits for inter-state stock transfers, etc. Thus, the effective tax rate could actually be higher than what is applicable on the output side.
Q.
Is there any alternative and simplistic tax payment and compliances mechanism provided for small scale dealers under GST?
A.A composition scheme has been provided under GST law for small taxpayers whose aggregate turnover in the preceding financial year does not exceed fifty lakh rupees. Such taxpayers have the option to pay GST at a flat rate instead commodity specific GST rates. Easier tax compliances are envisaged for such category of taxpayers under the GST law, such as simplified reporting and documentation formats, quarterly filing of returns (instead of monthly for normal taxpayers), no complexities on account of availment or reversal of input tax credits etc.However, the scheme is not available for certain categories of suppliers such as service providers (other than restaurant services), or dealers engaged in inter-state supply of goods, or dealers supplying goods through electronic commerce platform (where tax collected at source is applicable).
Q.
GST portal does not seem to be accepting fresh applications for migration of existing registrations to GST. What is the option available for those who missed the earlier window for GST migration? What is the status on application for fresh registration under GST?
A.GST migration facility has only been temporarily suspended on GST portal. As per a press release of the Ministry of Finance, GST portal would resume accepting new applications for migration of existing registrations from June 1, 2017. However, this window is expected to remain open only for 15 days till June 15, 2017. Thus, it is recommended to migrate the registrations within this time frame to avoid any repercussions later. As far as application for fresh registration is concerned, there is no official announcement thus far. However, it is expected that GST portal would be open for fresh registration by July 1, 2017.
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