This is a continuation of FAQs on GST Part 1 and Part 2
RETURNS
51. What would be done on
tax paid on advance receipt if advance has to be refunded in any circumstance?
Ans. Advance refunded can be
adjusted in return.
52. Do registered dealers
have to upload sale details of unregistered dealers also in GST?
Ans. Generally not. But
required in case of inter-State supplies having invoice value of more than Rs
2.50 lakh.
53. How to incorporate two
supplies in return for pharma with same HSN code of four digits but having
different tax rates?
Ans. Returns provide for furnishing
rate wise details.
SUPPLY
54. Should we discharge GST
liability for all reverse charge having small amounts of Transaction or any
amount limit is there?
Ans. It has been decided that
Rs 5,000 per day exemption will be given in respect of supplies received from
unregistered person. For supplies above this amount, a monthly consolidated
bill can be raised.
55. What is treatment of
promotional item given free to end consumers by FMCG companies?
Ans. Tax will be charged only
on the total consideration charged for such supply.
56. How to comply with 9(4)
of CGST Act if POS is in another state of the unregistered supplier?
Ans. Any person making
inter-state supply has to compulsorily obtain registration and therefore in
such cases, section 9(4) will not come into play.
57. Under supply from
unregistered dealer the purchaser have to pay GST on RCM basis.so whether
stipend paid to intern will also come under RCM?
Ans. Stipend paid to interns
will be employer-employee transactions. Hence, not liable for GST.
58. Salary by partnership
firm to Partners as per Income Tax Act liable to GST?
Ans. Salary will not be liable
for GST.
59. Sec 9(4) of CGST Act
2017. Do I need to pay under RCM if I purchase stationary worth Rs.100 from an
unregistered stationery shop?
Ans. It has been decided that
Rs 5,000 per day exemption will be given in respect of supplies received from
unregistered person.
60. What is the treatment of
promotional item given free to end consumers by FMCG companies? If taxable,
whether ITC is allowed?
Ans. Tax is payable on
consideration received for the supply.
61. Whether GST will be
leviable in case of returnable packing material like drums supplied with
finished goods?
Ans. GST will be levied on the
value charged for the supply only.
62. How will disposal of
scrap be treated in GST?
Ans. If the disposal is in the
course or furtherance of business purposes, it will be considered as a supply.
63. I am from MP and
providing service to a customer in Maharashtra. I outsource the work to a
service provider in Maharashtra, what tax i need to charge?
Ans. Generally these will be
two supplies where the supplier from MP will charge IGST from the recipient in
Maharashtra. Whereas, the service provider in Maharashtra will charge IGST from
the recipient in MP.
64. If address of buyer is
Punjab and place of supply is same state of supplier (Rajasthan), then IGST
will apply or CGST/SGST?
Ans. If the place of supply and
the location of the supplier are in the same state then it will be intra-state
supply and CGST / SGST will be applicable.
65. Why is bifurcation of
cash deposit as CGST-SGST-IGST required? Is cash held against a GSTIN, to be
adjusted via return u/s 39?
Ans. Three levies are under
three different statutes and are required to be separately accounted for.
66. What is the difference
in between 'Nil rated', 'taxable at 0 per cent' and exempted goods and services?
Ans. Especially in relation
with ITC exempt supply includes Nil rated (taxable at zero per cent) and
non-taxable supplies and no ITC is available for such supplies.
67. Will professional tax
will be abolished in Maharashtra after introducing of GST?
Ans. Professional tax is not a
tax on supply of goods or services but on being in a profession. Professional
tax not subsumed in GST.
68. Employer provides bus
service, meal coupon, telephone at residence, gives vehicle for official and
personal use, uniform and shoes, any GST?
Ans. Where the value of such
supplies is in the nature of gifts, no GST will apply till value of such gifts
exceeds Rs 50,000 in a financial year.
69. The definition of
composite supply and the description of same under Section 8 differ. Please
explain consequences.
Ans. Section 2(30) defines what
will be considered as a composite supply. Whereas, Section 8 provides that in
case of a composite supply, the treatment for tax rate etc. will be that of
principal supply.
70. Whether slump sale will
attract GST. If yes then under which Section?
Ans. It will have the same
treatment as normal supply.
71. Salary by Partnership
firm to Partners as per Income Tax Act liable to GST?
Ans. Partners are not employees
of the firm. Salary will not be leviable of GST.
TRANSITION
72. How do I avail
transition credit?
Ans. Transition credit can be
availed by filing the respective forms under transition rules upto September
30, 2017.
73. Please provide the
clarity on area based exemption 50/2003 in UK and HP.
Ans. Area based exemptions will
not be continued under GST. It will be operated through the route of
reimbursement as prescribed.
74. We manufactured
excisable goods. But unit availed the exception benefits 50/2003. What about my
dealers stock?
Ans. The dealer will get deemed
credit at the rate of 40 per cent / 60 per cent of the CGST paid on supply of
such goods in GST. If the goods are branded and greater than Rs 25,000, full
credit using CTD can be availed.
75. A trader buys from
manufacturer not registered in excise as his turnover is below 1.5cr. Then in
such case can trader take ITC on stock up to 40 per cent?
Ans. Yes, deemed credit will be
available subject to satisfaction of other conditions as prescribed.
FAQs on GST is available in 4 Parts.
