As the Central Govt. gets down to implementing GST from the midnight of June 30 and July 1, it also has a serious challenge to meet.
There is an immense task before the government to not just educate the people about the new tax regime but also clarify their doubts and remove their apprehensions.
To that end, the government has taken to the traditional mainstream and social media. While publishing advertorials, it has also invited queries on various platforms .
The Narendra Modi government has also sought to reply to the queries which the people have posted on Twitter.
The Central Board of Excise and Customs has attempted to respond to 100 such questions in order to clear the people's doubts on GST.
FAQs on GST is a 4 Part series.
1. Does aggregate turnover include value of inward supplies received on which RCM is payable?
Ans. Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
2. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
Ans. New registration would be required as partnership firm would have new PAN.
3. A taxable person's business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?
Ans. He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.
4. Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?
Ans. Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID and final GSTIN would be same.
5. Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
Ans. If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
6. Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Ans. Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act.
7. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?
Ans. A supplier of service will have to register at the location from where he is supplying services.
8. Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Ans. Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
9. If there are two SEZ units within same state, whether two registrations are required to be obtained?
Ans. SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.
10. Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?
Ans. Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.
11. When is registration in other state required? Will giving service from Nasik to other state require registration in other state?
Ans. If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
12. I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure?
Ans. A separate & new registration is required for ISD. New registrations are being opened from 0800 hrs. on 25.06.2017.
13. I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.
Ans. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
14. I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm.
Ans. This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
15. Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
Ans. GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
16. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ?20 lacs?
Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
17. Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover >20/10 Lakh?
Ans. There is no liability of registration if the person is dealing with 100% exempt supplies.
18. If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?
Ans. Yes, you would be treated as a normal taxable person.
19. Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)?
Ans. Separate registration as tax deductor is required.
20. Is separate registration required for trading and manufacturing by same entity in one state?
Ans. There will be only one registration per State for all activities.
21. I am registered in TN and getting the service from unregistered dealer of AP, should I take registration in AP to discharge GST under RCM?
Ans. Any person who makes make interstate taxable supply is required to take registration. Therefore, in this case AP dealer shall take registration and pay tax.
22. Is there any concept of area based exemption under GST?
Ans. There will be no area based exemptions in GST.
23. If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice?
Ans. Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
24. How long can I wait to register in GST ?
Ans. An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.
25. What If I am not liable to register under GST but I was registered under Service tax ?
Ans. You can apply for cancellation of Provisional ID on or before July 31, 2017.
FAQs on GST is available in 4 parts.
Part 2 - http://www.buxone.com/2017/06/faqs-on-gst-part-2.html
