Sunday 23 July 2017

FAQs on GST

FAQs on GST


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Q1. If I Buy Raw Material from Supplier unregistered in GST, do I Have to pay GST in RCM and can I avail ITC of the same?
Ans. Yes, you have to pay GST via RCM. You can avail ITC of the GST so paid if you are otherwise eligible.
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Q2.Existing Taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration?
Ans. The registration in other state would come under fresh registration.
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Q3. I am a Service Provider with turnover of Rs.50 Lacs in one state only. Am I Eligible for the Composition Scheme
Ans. Service Providers, Except restaurants/caterers, are not eligible for Composition Scheme.
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Q4. Can a person Operating two different Companies with Different names but with Same PAN get 2 GST Registrations
Ans. 1 PAN Holder gets One Registration in every state, but he has the option of getting different registrations for different business verticals.
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Q5. Whether Job Worker is required to Register? Whether Composition Scheme is available to a job worker?
Ans. Job Workers making taxable supplies above the threshold aggregate turnover need to register. Composition Scheme is not available to job-workers. They,however, can avail benefit of section 143 of the CGST Act.
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Q6. My all Outward Supplies are Export Services. In this case, Is it compulsory to register under GST?
Ans. Yes. Since, exports are Zero Rated, one needs to register for GST to claim refunds.
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Q7. If I’m starting new Business today, still need to get TIN and then apply for GST? Or can I directly register with GST
Ans. You may directly take GST Registration on www.gst.gov.in
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Q8. Whether Franchisor Company will have to take registration in each state where outlets are located
Ans. No, a Franchisor company need not take registration in a state where only its franchisee is located.
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Q9. Is registration necessary if only interstate supply of NIL rated goods is being made
Ans. If exclusively making supplies of NIL rated supplies, registration is NOT Compulsory. Kindly refer section 23 of CGST Act.
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Q10. I am an ice cream manufacturer with sales in one state only. Can I avail the option of composition?
Ans. No. The Following three classes of persons, namely
  • Ice cream and other edible ice, whether or not containing cocoa.
  • Pan Masala
  • All goods, i.e. Tobacco and manufactured tobacco substitutes
Are not eligible for benefit of Composition Scheme.
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Q11. I was unregistered in excise before and now in 18% slab? Can I take credit of stock if I don’t have Invoices?
Ans. Deemed Credit will be available to you for stock as duty paying documents are not available, subject to provisions of section 140(3) of the CGST Act, 2017 read with rule 140(4) of CGST Rules, 2017.
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Q12. If I Register under the Composition Scheme, Can I opt out of it later? What happens to my stock if I do so
Ans. Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switchover in terms of sec 18(1)(c ) of CGST Act,2017.
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Q13. Can I register as a normal taxable person now and avail of the composition scheme later
Ans. You can opt for Composition Scheme from the beginning of the next Financial Year on submitting the option to avail composition scheme before beginning of the financial year. It may please be noted that composition scheme cannot be availed from the middle of a financial year.
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Q14. I have not Received ARN or have received ARN but not  GSTIN, how do I supply goods or services or both
Ans. You can supply goods or services or both on bill of supply without mentioning GSTIN and/or ARN. On receipt of GSTIN, you will need to issue revised invoice mentioning GSTIN. You are required to reflect this supply in your return and also pay tax thereon.
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Q15. I have migrated and received Provisional ID but not GSTIN, how do I Supply Goods or services or both?
Ans. Provisional ID (PID) will be your GSTIN. You can Supply Goods or Services or both specifying PID as your GSTIN on Invoice.
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Q16. Composite Dealer are not allow to interstate sale, but purchase is allowed. Is it correct? If correct then what will happen if Sales Return as it also covered under Supply.
Ans. 1. Yes. But the Supplier has to upload the invoice with GSTIN of the recipient
  1. No provision made in Law and legally not allowed.
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Q17. How URD can purchase from other state, what will be filled in E-way Bill as there is no details available for URD.
Ans. In that case, it is responsibility of supplier or GTA- how URD can compy.
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Q18. I am registered in Delhi, started one project of construction in Kolkata. I am not registered in Kolkata, I have been charged IGST there locally since I received material from other state in Kolkata. Can I take Input Credit of Kolkata IGST with Delhi?
Ans. Yes. You can take ITC but if Project is big, not advisable to avoid registration in that state
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Q19. Work Contract Rate is 18%, what if material is included of 28% or 5% then which covered major portion of my work contract invoice. Do I need to charge 18% even material which is 60% and rate are different than 18%
Ans. Yes. Rate should be 18% if it is works Contract of Immovable property.
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Q20. If Material Costs is 1 Lacs and delivery charges also charged Rs. 5000/- then How GST will be charged on delivery charges? Whether Rate of Material will apply on Delivery Charges?
Ans. On Rs. 105,000 at rate applicable to Goods
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Q21. We are Consignment Sales Agent for XYZ Ltd. (For us they are Principal in Delhi, now I am raising my commission bill from Delhi). What will be charged IGST or CG + SGST.They are asking bill in name of their Mumbai head office. Place of Supplier is Delhi and what is place of supply here?
Ans. Seems it is their tax planning You can raise bill on Mumbai if the Mumbai Office has appointed you as Sales Agent
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Q22. I am a builder In Kolkata, recently started project in Pune. Do I need to register in Maharashtra even though if don’t need to avail Input Credit.
Ans. If small project then you need not register But if Big Project and lit of ITC is there then you should register otherwise it will be a Loss.
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Q23. I am Shifting My Old Machinery to my branch in another State. What will be procedure? It will be through DC or tax invoice, Gst will be payable? Since this is 5 years Old Machine.
Ans. If you are having factory there and using machinery in that factory, Best is to pay GST on 50% of value and take Credit in the branch.
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Regards
ACA SOURAV BAGARIA

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