FAQs answered on twitter handle by CBEC
Official Twitter Handle of the Central Board of Excise & Customs, responsible for administering Indirect Taxes in India. Ministry of Finance, Government of India set up in May 2015.
Official twitter handle of the GOI for queries on GST. Tweets for educational purposes only and not applicable to any legal proceedings. CBEC Sets Up Twitter Handle To Answer GST Queries in May 2017.
Just before a month of GST implementation, the Central Board of Excise and Customs (CBEC) had started a new twitter handle to answer industry queries related to the new indirect tax regime. Any person, traders, retailers, industry etc can ask questions on the twitter handle @askGST_GoI and officials from CBEC will answer them. If anyone has any query related to GST can directly ask the officials from CBEC on their twitter handle.
All the queries asked by common people and their replies given by CBEC officials is compiled for your reference. This FAQs will be updated on timely basis. And if you have any query other than compilation of questions and answered here you can ask directly to the government on either the helpline numbers or on the official twitter handle -askGST_GOI. The tweets received by askGST_GoI handle were scrutinized and developed into a list of FAQs on different topics of tweets.
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FAQs asked on registration
Query : Does aggregate turnover include value of inward suppliesreceived on which RCM is payable
Reply : Refer Section 2(6) of CGST Act.Aggregate turnover does not includevalue of inward supplies on which taxis payable on reverse charge basis.
Query :What if the dealer migrated with wrong PAN as the statusof firm was changed from proprietorship to partnership
Reply :New registration would be required aspartnership firm would have new PAN.
Query :A taxable persons business is in many states. All suppliesare below 10 Lakhs. He makes an Inter State supply fromone state. Is he liable for registration
Reply :He is liable to register if the aggregateturnover (all India) is more than 20 lacsor if he is engaged in inter-Statesupplies.
Query :Can we use provisional GSTIN or do we get new GSTINCan we start using provisional GSTIN till new one is issued
Reply :Provisional GSTIN (PID) should beconverted into final GSTIN within 90days. Yes, provisional GSTIN can beused till final GSTIN is issued. PID &final GSTIN would be same.
Query :Whether trader of country liquor is required to migrate toGST from VAT as liquor is out of GST law
Reply :If the person is involved in 100% supplyof goods which are not liable for GST,then no registration is required.
Query :Not liable to tax as mentioned u/s 23 of CGST means nilrated supply or abated value of supply
Reply :Not liable to tax means supplies whichis not leviable to tax under theCGST/SGST/IGST Act. Please refer todefinition under Section 2(78) of theCGST Act
Query :Whether civil contractor doing projects in various statesrequires separate registration for all states or a singleregistration at state of head office will suffice
Reply :A supplier of service will have toregister at the location from where heis supplying services.
Query :Whether aggregate turnover includes turnover of supplieson which tax is payable by the recipient under reversecharge
Reply :Outward supplies on which tax is paidon reverse charge basis by therecipient will be included in theaggregate turnover of the supplier.
Query :If there are two SEZ units within same state, whether tworegistrations are required to be obtained
Reply :SEZs under same PAN in a state requireone registration. Please see proviso torule 8(1) of CGST Rules.
Query :Is an advocate providing interstate supply chargeableunder Reverse Charge liable for registration
Reply :Exemption from registration has beenprovided to such suppliers who aremaking only those supplies on whichrecipient is liable to discharge GSTunder RCM.
Query :When is registration in other state required Will givingservice from Nasik to other state require registration inother state
Reply : If services are being provided fromNasik then registration is required tobe taken only in Maharashtra and IGSTto be paid on inter-state supplies.
Query :I have migrated under GST but want to register as ISD.Whether I can apply now & what is the procedure
Reply :A separate & new registration isrequired for ISD. New registrations arebeing opened from 0800 hrs. on25.06.2017.
Query :I have enrolled in GST but I forgot to enter SAC codes.What should I do The status is migrated.
Reply :The same can be filled while filingFORM REG-26 for convertingprovisional ID to final registration
Query :I have ST number on individual name and have migrated toGST. I wish to transfer this on my proprietorship firm.
Reply :This conversion may be done whilefilling FORM REG-26 for convertingprovisional ID to final registration.
Query :Please tell if rental income up to 20 lacs attracts GST orattracts any other charge
Reply :GST is leviable only if aggregateturnover is more than 20 lacs. (Rs. 10lacs in 11 special category States). Forcomputing aggregate supplies turnoverof all supplies made by you would beadded.
Query : If someone trades only 0% GST items (grains, pulses) thenis it necessary to register for GST, if the turnover exceeds Rs. 20 lakhs
Reply :A person dealing with 100% exemptedsupply is not liable to registerirrespective of turnover.
Query : Is it correct that person dealing exclusively in NIL rated orexempt goods/ services liable to register if turnover >20/10 Lakh
Reply :There is no liability of registration if theperson is dealing with 100% exemptsupplies.
Query :If I register voluntarily though turnover is less than 20Lakhs, am I required to pay tax from 1st supply I make postregistration
Reply :Yes, you would be treated as a normaltaxable person.
Query : Whether a separate GSTIN would be allotted to aregistered person for deducting TDS (he has PAN and TANas well)
Reply :Separate registration as tax deductor isrequired.
Query : Is separate registration required for trading andmanufacturing by same entity in one state
Reply :There will be only one registration perState for all activities.
Query :I am registered in TN and getting the service fromunregistered dealer of AP, should I take registration in APto discharge GST under RCM
Reply :Any person who makes make interstate
taxable supply is required to takeregistration. Therefore in this case APdealer shall take registration and paytax.
Query : Is there any concept of area based exemption under GST
Reply :There will be no area based
exemptions in GST.
Query : If a company in Maharashtra holds only one event in Delhi,will they have to register in Delhi Will paying IGST fromMaharashtra suffice
Reply :Only if you provide any supply fromDelhi you need to take registration inDelhi. Else, registration at Mumbai issufficient (and pay IGST on supplies
made from Mumbai to Delhi)
Query :How long can I wait to register in GST
Reply :An unregistered person has 30 days to
complete its registration formalitiesfrom its date of liability to obtainregistration.
Query : What If I am not liable to register under GST but I wasregistered under Service tax
Reply :You can apply for cancellation ofProvisional ID on or before 31st July2017.
Query : When turnover of agents will be added to that of the principal for registration
Reply :No.
Query : If I am not an existing taxpayer and wish to newly registerunder GST, when can I do so
Reply :You would be able to apply for newregistration at the GST Portal www.gst.gov.infrom 0800 hrs. on 25th June 2017.
Query :I have a pending export refund in Service Tax. What willhappen
Reply :Refunds under earlier laws will begiven under the respective laws only.
Query :As an exporter, how do I ensure that my working capital isnot blocked as refunds
Reply :Appropriate provisions have beenmade in the law by providing for grantof 90% refund on provisional basiswithin 7 days from filing of registration.
Query :What will be the impact of GST on coal Will the cleanenergy Cess on coal go or will it stay
Reply :Clean Environmental Cess on coal willbe replaced by GST Compensation Cess.
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FAQs asked on compensation scheme
Query :Suppose I am in composition scheme in GST. If I purchasegoods from unregistered person, then GST will be paid toGovernment by me or not
Reply :Yes, you will be liable to pay tax onreverse charge basis for supplies fromunregistered person.
Query :What duties will be levied on import of goods Customs duty and cess as applicable + IGST+ GST compensation cess.
Reply : IGSTand GST compensation cess shall bepaid after adding all customs duty andcustoms cess to the value of imports.
Query :Present Procedures have Service Tax on Nepal, But noGoods Tax on Nepal. But, With GST, what tax will apply
Reply :The export procedure for Nepal wouldbe same as that to other Countries.
Query :Are there exemptions for SEZ How will a SEZ transactionhappen in GST regime
Reply :Supplies to SEZs are zero-ratedsupplies as defined in Section 16 ofIGST Act.
Query :How would the sale and purchase of goods to and fromSEZ will be treated Will it be export / input
Reply :Supply to SEZs is zero rated suppliesand supplies by SEZs are treated asimports.
Query :Please clarify status of international export freight underGST as the same was exempt under POPS rules. It is zerorated in most countries.
Reply :POS for transport of goodsdeterminable in terms of sec 12(8) orsect 13(8) of IGST Act, 2017, dependingupon location of serviceprovider/service receiver. Exports aretreated as zero rated supplies.
Query :When goods are being imported from SEZ who will payIGST
Reply :Such supply is treated as import andpresent procedure of payment of dutycontinues with the variation that IGSTis levied in place of CVD.
Query :Who will pay IGST when goods are procured from SEZ Today importer is paying both BCD and CVD.
Reply :Such supply is treated as import andpresent procedure of paymentcontinues with the variation that IGSTis levied in place of CVD.
Query :Is SGST of Rajasthan charged by supplier on purchasefrom Rajasthan can be utilize for payment of SGST inMadhya Pradesh
Reply :SGST of one State cannot be utilizedfor discharging of output tax liability ofanother State.
Query :How one can use SGST credit for the payment of IGST onanother state
Reply :SGST Credit can be used for paymentof IGST liability under the same GSTINonly.
Query : Can one State CGST be used to pay another state CGST
Reply :The CGST and SGST Credit for a Statecan be utilized for payment of theirrespective CGST/SGST liabilities withinthat State for the same GSTIN only.
Query :In case of service supplied, should the credit be given tothe state where it is billed or the state it is rendered
Reply :Tax will be collected in the State fromwhich the supply is made. The supplier
will collect IGST and the recipient willtake IGST credit.
Query : Company is engaged in manufacturing of cement &power. Which rule to be referred for reversal of creditrelated to power business
Reply :Detailed rules for reversal of ITC whenthe supplier is providing exempted andnon-exempted supplies have beenprovided in ITC Rules.
Query :How will the credit / debit note from unregisteredsupplier be reported to GSTN and ITC claimed in thesame
Reply :Like invoice, credit/debit notes onbehalf of unregistered person will be
given by registered person only.Further, GSTR 2 provides for reportingof same by the recipient.
Query :A shop sells taxable & exempt products to the sameperson (B2C), is it required to issue tax invoice and bill ofsupply separately
Reply : In such a case the person can issue onetax invoice for the taxable invoice andalso declare exempted supply in thesame invoice.
Query :Do registered dealers have to record Aadhaar/PAN whileselling goods to unregistered dealers
Reply : There is no requirement to takeAadhaar / PAN details of the customerunder the GST Act.
Query :All expenses like freight / transport / packing which arecharged in Sales Invoice are taxable in GST How tocharge in bill
Reply :All expenses will have to be included inthe value and invoice needs to beissued accordingly. Please refer toSection 15 of CGST Act and InvoiceRules.
Query :Can we move construction material to builders ondelivery challan and issue tax invoice post completion ofactivity
Reply :If the goods are meant to be suppliedin the course of construction an invoiceis necessary. If the goods are toolswhich are to be used for constructionthen delivery challan should be issued.
Query : How to treat following transaction in GST (i) Deliveredsupply shortages in Transit. (ii) customer gets lessquantity and pays less.
Reply :The supplier may issue credit note tothe customers and adjust his liability.
Query : Should e issue Self Invoice for GST liability discharge onRCM or GST can be discharge through expenses bookingvoucher
Reply :For RCM liabilities tax invoice has to beissued on self.
Query : What would be done on tax paid on advance receipt ifadvance has to be refunded in any circumstance
Reply :Advance refunded can be adjusted inreturn.
Query :Do registered dealers have to upload sale details ofunregistered dealers also in GST
Reply :Generally not. But required in case ofinter-State supplies having invoicevalue of more than Rs 2.50 Lakhs.
Query : How to incorporate two supplies in return for Pharmawith same HSN code of four digits but having different taxrates
Reply :Returns provide for furnishing ratewise details.
Query :Should we discharge GST liability for all reverse chargehaving small amounts of Transaction or any amount limitis there
Reply :It has been decided that Rs. 5000/- perday exemption will be given in respectof supplies received from unregisteredperson. For supplies above thisamount, a monthly consolidated billcan be raised.
Query :What is treatment of promotional item given free to endconsumers by FMCG companies
Reply :Tax will be charged only on the totalconsideration charged for such supply.
Query : How to comply with 9(4) of CGST Act if POS is in anotherState of the unregistered supplier
Reply :Any person making inter-state supplyhas to compulsorily obtain registrationand therefore in such cases, section9(4) will not come into play.
Query : Under supply from unregistered dealer the purchaserhave to pay GST on RCM basis.so whether stipend paid tointern will also come under RCM
Reply :Stipend paid to interns will beemployer-employee transactions.Hence, not liable for GST.
Query :Salary by partnership firm to Partners as per Income TaxAct liable to GST
Reply :Salary will not be liable for GST.
Query :Sec 9(4) of CGST Act 2017. Do I need to pay under RCM if Ipurchase stationary worth Rs.100 from an unregisteredstationery shop
Reply :It has been decided that Rs. 5000/- perday exemption will be given in respectof supplies received from unregisteredperson.
Query :What is the treatment of promotional item given free toend consumers by FMCG companies Reply : If taxable, whetherITC is allowedTax is payable on considerationreceived for the supply.
Query : Whether GST will be leviable in case of returnable packingmaterial like drums supplied with finished goods
Reply : GST will be levied on the value chargedfor the supply only.
Query : How will disposal of scrap be treated in GST
Reply :If the disposal is in the course orfurtherance of business purposes, itwill be considered as a supply.
Query :I am from MP and providing service to a customer inMaharashtra. I outsource the work to a service provider inMaharashtra, what tax i need to charge
Reply :Generally these will be two supplieswhere the supplier from MP will chargeIGST from the recipient inMaharashtra. Whereas, the serviceprovider in Maharashtra will chargeIGST from the recipient in MP.
Query :If address of buyer is Punjab and place of supply is samestate of supplier (Rajasthan), then IGST will apply orCGST/SGST
Reply :If the place of supply and the locationof the supplier are in the same Statethen it will be intra-State supply andCGST / SGST will be applicable.
Query :Why is bifurcation of cash deposit as CGST-SGST-IGSTrequired Is cash held against a GSTIN, to be adjusted viareturn u/s 39.
Reply :Three levies are under three differentstatutes and are required to be
separately accounted for.
Query : What is the difference in between 'Nil rated', 'taxable at0%' and exempted goods and services
Reply :Especially inrelation with ITCExempt supply includes Nil rated(taxable at 0%) and non-Taxablesupplies and no ITC is available for suchsupplies.
Query : Will professional tax will be abolished in Maharashtraafter introducing of GST
Reply :Professional tax is not a tax on supplyof goods or services but on being in aprofession. Professional tax notsubsumed in GST.
Query : Employer provides bus service, meal coupon, telephoneat residence, gives vehicle for official and personal use,uniform and shoes, any GST
Reply :Where the value of such supplies is inthe nature of gifts, no GST will apply tillvalue of such gifts exceeds Rs. 50000/-in a financial year.
Query :The definition of composite supply and the description ofsame under Section 8 differ. Please explain consequences.
Reply : Section 2(30) defines what will beconsidered as a composite supply.Whereas, Section 8 provides that incase of a composite supply, thetreatment for tax rate etc. will be thatof principal supply.
Query : Whether slump sale will attract GST. If yes then underwhich Section
Reply :It will have the same treatment asnormal supply.
Query :Salary by Partnership firm to Partners as per Income TaxAct liable to GST
Reply :Partners are not employees of the firm.Salary will not be leviable of GST.
Query :How do I avail transition credit
Reply :Transition credit can be availed byfiling the respective forms underTransition rules upto 30.09.2017.
Query : Please provide the clarity on area based exemption50/2003 in UK & HP.
Reply :Area based exemptions will not becontinued under GST. It will beoperated through the route ofreimbursement as prescribed.
Query : We manufactured excisable goods. But unit availed theexception benefits 50/2003. What about my dealersstock
Reply :The dealer will get deemed credit @40% / 60% of the CGST paid on supplyof such goods in GST. If the goods arebranded and greater than Rs. 25,000 full credit using CTD can be availed.
Query : A trader buys from manufacturer not registered in exciseas his turnover is below 1.5cr. Then in such case cantrader take ITC on stock up to 40%
Reply :Yes deemed credit will be availablesubject to satisfaction of otherconditions as prescribed.
Query : I am a trader. I have excise paid purchase invoice.Whether I can claim credit of full excise duty on closingstock of 1st July 2017
Reply :Full transition credit of such duty willbe available on stock in hand in respectof which you have duty paying excisedocument subject to conditions underSection 140(3) of the CGST Act.
Query : If a trader purchases directly from manufacturer & hasdocuments showing excise, will he get full excise credit or40% of CGST
Reply :Full transition credit of such duty willbe available on stock in hand in respectof which you have duty paying excisedocument subject to conditions underSection 140(3) of the CGST Act.
Query : If a fsd purchases directly from manufacturer and hasvalue cum excise duty and excise duty is not separatelyshown will he get full credit
Reply :Full transition credit of such duty willbe available on stock in hand in respectof which you have duty paying excisedocument subject to conditions underSection 140(3) of the CGST Act.
Query : Is the full excise credit also available to traders whopurchases directly from manufacturers and excise isseparately shown in invoice
Reply :Full transition credit of such duty willbe available on stock in hand in respectof which you have duty paying excisedocument subject to conditions underSection 140(3) of the CGST Act.
Query : In June 17 Vat return no amount carried forward & heldstock of Rs. 50 lakhs. Then can we take credit of that stockor not
Reply :The supplier would be eligible to carryforward the closing balance of ITC fromVAT return for June 17.
Query : What will be the impact of closing stock which has beenalready paid vat on 1st July
Reply :The supplier would be eligible to carryforward ITC on such stock from VATreturn for June 17.
Query : If in Vat return refund claimed in June 17 & no balancecredit in GST. Then what's the position of submission ofForm C
Reply :Refund claimed under existing law willbe handled as per the provisions of theexisting law. Form C to be submitted interms of provision of Rule 1(1) ofTransition Rules.
Query :Some service was provided on 28.06.2017 but Invoice willbe raised on 05.07.2017. Whether we have to chargeService Tax or GST
Reply :If Point of Tax arises after appointeddate, then GST will be chargeable onsuch supply.
Query :Would we be eligible for credit on Capital Goods in transitand received post GST
Reply :No provision for such credit is there inGST law.
Query :What about VAT balance pending on transition date
Reply :Balance VAT credit in the return will betransferred to new provisional ID asSGST Credit.
Query : What about deemed export against Form H
Reply :Form H will not be there in GST.
Query :Who will bear tax difference on closing stocks as on 30th, June 2017 Whether the manufacturer/dealer orgovernment
Reply :Closing ITC in VAT return will beallowed to be carry forward in GST.
Query : How will we get input credit on stock in hand for spareparts billed from other state, excise, CST and entry taxpaid
Reply :For all inputs with duty payingdocuments available respective CGST /
SGST credit will be available. But creditof CST will not be available.
Query : A trader buys from manufacturer not registered in exciseas his turnover is below 1.5 crore. then in such case cantraders take ITC on stock up to 40%
Reply :Deemed Credit will be available onstock in hand provided the conditionsof section 140(3) read with Rule 1(4) ofTransition Rules are satisfied.
Query : Whether we will be eligible for credit of duty paid onCapital Goods in transit and received post GST
Reply :No such provision in GST.
Query : Can ITC of Swach Bharat Cess or Krishi Kalyan Cess becarried forward under GST
Reply :No
Query : Will Clean Energy CESS on imported Coal @ Rs. 400 PMTcontinue to be applicable in GST
Reply :No. Clean Energy Cess is beingrepealed. Coal, however, will besubject to compensation cess @ Rs400/- per tonne.
Query : Whether closing balance of edu cess and secondaryhigher education cess prior to 1st Mar 2015 can becarried forward in GST
Reply :No it will not be carried forward in GSTas it is not covered by definition ofeligible duties and taxes underSection 140 of the CGST Act.
Query :Can u clarify for 40 benefit on closing stock does 1 yearlimit apply or not
Reply :Deemed credit will be available for allstock procured within a 1 year period.
Query : Till what time is transition credit available Where do Ineed to declare my input stock
Reply :The window to declare transition creditforms is three months from theappointed day. Please refer to
transition rules for more details.
Query : Will there be GST in A&N Islands as previously there wasno VATYes.
Reply : For supplies within A&N, CGSTplus UTGST would be leviable.
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FAQs asked on other miscellaneoustopics
Query : Whether IGST would be levied twice on high seas sales
Reply :First on high seas sales and second on custom clearance.IGST paid on 1 available as ITCIGST shall be levied only once onimports.
Query :Will Krishi Mandi Fee (imposed in U.P.) be waived off inGST
Reply :GST does not concern such fee so GSTdoes not affect it.
Query :Is E-Way Bill applicable from 1st July 2017
Reply :The present system for E-way Bill inStates to continue, till the E-Way Billprocedures are finalized.
Query :Is there a sunset clause for Anti-Profiteering law
Reply :Yes, the sunset clause for Anti- profiteeringAuthority is of two years.
Compiled by
CA Ankita Khetan
Ankita Khetan
Jul 31, 2017
765
