GST FAQ 3

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.

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.

76. I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of July 1, 2017?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

77. If a trader purchases directly from manufacturer and has documents showing excise, will he get full excise credit or 40 per cent of CGST?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

78. If an FSD purchases directly from manufacturer and has value cum excise duty and excise duty is not separately shown will he get full credit?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

79. Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice?
Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

80. In June 17 VAT return no amount carried forward and held stock of Rs 50 lakh. Then can we take credit of that stock or not?
Ans. The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.

81. What will be the impact of closing stock which has been already paid vat on 1st July?
Ans. The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.

82. If in VAT return refund claimed in June 17 and no balance credit in GST. Then what's the position of submission of Form C Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.

83. Some service was provided on June 28, 2017 but invoice will be raised on July 5, 2017. Whether we have to charge Service Tax or GST?
Ans. If Point of Tax arises after appointed date, then GST will be chargeable on such supply.

84. Would we be eligible for credit on Capital Goods in transit and received post GST?
Ans. No provision for such credit is there in GST law.

85. What about VAT balance pending on transition date?
Ans. Balance VAT credit in the return will be transferred to new provisional ID as SGST

Credit

86. What about deemed export against Form H?
Ans. Form H will not be there in GST.

87. Who will bear tax difference on closing stocks as on June 30, 2017? Whether the manufacturer/dealer or government?
Ans. Closing ITC in VAT return will be allowed to be carry forward in GST.

88. How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid?
Ans. For all inputs with duty paying documents available respective CGST/SGST credit will be available. But credit of CST will not be available.

89. A trader buys from manufacturer not registered in excise as his turnover is below 1.5 crore. Then in such case can traders take ITC on stock up to 40 per cent?
Ans. Deemed credit will be available on stock in hand provided the conditions of section 140(3) read with Rule 1(4) of Transition Rules are satisfied.

90. Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?
Ans. No such provision in GST.

91. Can ITC of Swachh Bharat Cess or Krishi Kalyan Cess be carried forward under GST?
Ans. No.

92. Will Clean Energy CESS on imported Coal at the rate of Rs 400 PMT continue to be applicable in GST?
Ans. No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess at the rate of Rs 400 per tonne.

93. Whether closing balance of education cess and secondary higher education cess prior to March 1, 2015 can be carried forward in GST?
Ans. No, it will not be carried forward in GST as it is not covered by definition of "eligible duties and taxes" under Section 140 of the CGST Act.

94. Can you clarify for 40 per cent benefit on closing stock does one year limit apply or not?
Ans. Deemed credit will be available for all stock procured within a 1 year period.

95. Till what time is transition credit available? Where do I need to declare my input stock?
Ans. The window to declare transition credit forms is three months from the appointed day. Please refer to transition rules for more details.
UTGST

96. Will there be GST in Andaman and Nicobar Islands as previously there was no VAT?
Ans. Yes. For supplies within Andaman and Nicobar Islands, CGST plus UTGST would be leviable.

OTHERS

97. Whether IGST would be levied twice on high seas sales? First on high seas sales and second on custom clearance. IGST paid on 1 available as ITC?
Ans. IGST shall be levied only once on imports.

98. Will Krishi Mandi Fee (imposed in U.P.) be waived off in GST?
Ans. GST does not concern such fee so GST does not affect it.

99. Is E-Way Bill applicable from July 1, 2017?
Ans. The present system for E-way Bill in states will continue till the E-Way Bill procedures are finalised.

100. Is there a sunset clause for Anti-Profiteering law?
Ans. Yes, the sunset clause for Anti-profiteering Authority is of two years.