This is a continuation of FAQs on GST - Part 1
26. When turnover of agents will be added to that of the principal
for registration?
Ans. No.
27. If I am not an existing
taxpayer and wish to newly register under GST, when can I do so?
Ans. You would be able to apply
for new registration at the GST Portal gst.gov.in from 0800 hrs. on 25th June
2017
REFUND
28. I have a pending export
refund in Service Tax. What will happen?
Ans. Refunds under earlier laws
will be given under the respective laws only.
29. As an exporter, how do I
ensure that my working capital is not blocked as refunds?
Ans. Appropriate provisions
have been made in the law by providing for grant of 90 per cent refund on
provisional basis within 7 days from filing of registration.
CESS
30. What will be the impact
of GST on coal? Will the clean energy Cess on coal go or will it stay?
Ans. Clean Environmental Cess
on coal will be replaced by GST Compensation Cess.
COMPOSITION SCHEME
31. Suppose I am in
composition scheme in GST. If I purchase goods from unregistered person, then
GST will be paid to Government by me or not?
Ans. Yes, you will be liable to
pay tax on reverse charge basis for supplies from unregistered person.
CUSTOMS
32. What duties will be
levied on import of goods? Customs duty and cess as applicable + IGST+ GST
compensation cess.
Ans. IGST and GST compensation
cess shall be paid after adding all customs duty and customs cess to the value
of imports.
EXPORTS
33. Present procedures have
Service Tax on Nepal, But no Goods Tax on Nepal. But, With GST, what tax will
apply?
Ans. The export procedure for
Nepal would be same as that to other countries.
34. Are there exemptions for
SEZ? How will a SEZ transaction happen in GST regime?
Ans. Supplies to SEZs are
zero-rated supplies as defined in Section 16 of IGST Act.
35. How would the sale and
purchase of goods to and from SEZ will be treated? Will it be export / input?
Ans. Supply to SEZs is zero
rated supplies and supplies by SEZs are treated as imports.
36. Please clarify status of
international export freight under GST as the same was exempt under POPS rules.
Ans. It is zero rated in most
countries. POS for transport of goods determinable in terms of sec 12(8) or
sect 13(8) of IGST Act, 2017, depending upon location of service
provider/service receiver. Exports are treated as zero rated supplies.
37. When goods are being
imported from SEZ who will pay IGST?
Ans. Such supply is treated as
import and present procedure of payment of duty continues with the
variation that IGST is levied
in place of CVD.
38. Who will pay IGST when
goods are procured from SEZ?
Ans. Today importer is paying
both BCD and CVD. Such supply is treated as import and present procedure of
payment continues with the variation that IGST is levied in place of CVD.
INPUT TAX CREDIT
39. Is SGST of Rajasthan
charged by supplier on purchase from Rajasthan can be utilize for payment of
SGST in Madhya Pradesh?
Ans. SGST of one State cannot
be utilised for discharging of output tax liability of another State.
40. How one can use SGST
credit for the payment of IGST on another state?
SGST Credit can be used for
payment of IGST liability under the same GSTIN only.
41. Can one State CGST be
used to pay another state CGST?
Ans. The CGST and SGST Credit
for a State can be utilized for payment of their respective CGST/SGST
liabilities within that State for the same GSTIN only.
42. In case of service
supplied, should the credit be given to the state where it is billed or the
state it is rendered?
Ans. Tax will be collected in
the State from which the supply is made. The supplier will collect IGST and the
recipient will take IGST credit.
43. Company is engaged in
manufacturing of cement and power. Which rule to be referred for reversal of
credit related to power business?
Ans. Detailed rules for
reversal of ITC when the supplier is providing exempted and non-exempted
supplies have been provided in ITC Rules.
44. How will the
credit/debit note from unregistered supplier be reported to GSTN and ITC
claimed in the same?
Ans. Like invoice, credit/debit
notes on behalf of unregistered person will be given by registered person only.
Further, GSTR2 provides for reporting of same by the recipient.
INVOICE
45. A shop sells taxable
& exempt products to the same person (B2C), is it required to issue tax
invoice and bill of supply separately?
Ans. In such a case the person
can issue one tax invoice for the taxable invoice and also declare exempted
supply in the same invoice.
46. Do registered dealers
have to record Aadhaar/PAN while selling goods to unregistered dealers?
Ans. There is no requirement to
take Aadhaar / PAN details of the customer under the GST Act.
47. All expenses like
freight / transport / packing which are charged in Sales Invoice are taxable in
GST? How to charge in bill?
Ans. All expenses will have to
be included in the value and invoice needs to be issued accordingly. Please
refer to Section 15 of CGST Act and Invoice Rules.
48. Can we move construction
material to builders on delivery challan and issue tax invoice post completion
of activity?
Ans. If the goods are meant to
be supplied in the course of construction an invoice is necessary. If the goods
are tools which are to be used for construction then delivery challan should be
issued.
49. How to treat following
transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer
gets less quantity and pays less.
Ans. The supplier may issue credit
note to the customers and adjust his liability.
50. Should we issue Self
Invoice for GST liability discharge on RCM or GST can be discharge through
expenses booking voucher?
Ans. For RCM liabilities tax
invoice has to be issued on self.
FAQs on GST is available in 4 Parts.
