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CBEC releases Tweet FAQ’s on Goods and Service Tax

Tweet FAQs

The tweets received by ask GST_GoI handle were scrutinized and developed into a short FAQ of 100 tweets.

S. No. Questions / Tweets Received Replies
1. Does aggregate turnover include value of inward supplies received on which RCM is payable? Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
2. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership? New registration would be required as partnership firm would have new PAN
3 A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration? He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.
4 Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued? Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.

 

5 Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law? If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.

 

6 Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply? Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act

 

7 Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice? A supplier of service will have to register at the location from where he is supplying services
8 Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge? Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.

 

 

9 If there are two SEZ units within same state, whether two registrations are required to be obtained? SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules.

 

 

10 Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration? Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.

 

11 When is registration in other state required? Will giving service from Nasik to other state require registration in other state? If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
12 I have migrated under GST but want to register as ISD. Whether I can apply now & what is the procedure? A separate & new registration is required for ISD. New registrations are being opened from 0800 hrs. on 25.06.2017
13 I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
14 I have ST number on individual name and have migrated to GST.I wish to transfer this on my proprietorship firm. This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
15 Please tell if rental income up to 20 lacs attracts GST or attracts any other charge? GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
16 If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs? A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
17 Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh? There is no liability of registration if the person is dealing with 100% exempt supplies
18 If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration? Yes, you would be treated as a normal taxable person.
19 Whether a separate GSTIN would be allotted to a registered person for deducting TDS (he has PAN and TAN as well)? Separate registration as tax deductor is required.
20 Is separate registration required for trading and manufacturing by same entity in one state? There will be only one registration per State for all activities.
21 I am registered in TN and getting the service from unregistered dealer of AP, should I take registration in AP to discharge GST under RCM? Any person who makes make interstate taxable supply is required to take registration. Therefore in this case AP dealer shall take registration and pay tax
22 Is there any concept of area based exemption under GST? There will be no area based exemptions in GST
23 If a company in Maharashtra holds only one event in Delhi, will they have to register in Delhi? Will paying IGST from Maharashtra suffice? Only if you provide any supply from Delhi you need to take registration in Delhi. Else, registration at Mumbai is sufficient (and pay IGST on supplies made from Mumbai to Delhi)
24 How long can I wait to register in GST? An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration
25 What If I am not liable to register under GST but I was registered under Service tax? You can apply for cancellation of Provisional ID on or before 31st July 2017.
26 When turnover of agents will be added to that of the principal for registration? No.
27 If I am not an existing taxpayer and wish to newly register under GST, when can I do so? 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? 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? Appropriate provisions have been made in the law by providing for grant of 90% 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? Clean Environmental Cess on coal will be replaced by GST Compensation Cess.
COMPOSITION SCHEME
31 What will be the impact of GST on coal? Will the clean energy Cess on coal go or will it stay? Clean Environmental Cess on coal will be replaced by GST Compensation Cess.
CUSTOMS
32 What duties will be levied on import of goods? Customs duty and cess as applicable + IGST+ GST compensation cess. 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? 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? 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? 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. 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? 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? 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? SGST of one State cannot be utilized for discharging of output tax liability of another State
40 How one can use SGST credit for the payment of IGST on another state? 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.
41 Can one State CGST be used to pay another state CGST? 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
42 In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered? Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
43 Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business? 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.
44 How will the credit / debit note from unregistered supplier be reported to GSTN and ITC claimed in the same? 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? 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? 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? 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? 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. 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? For RCM liabilities tax invoice has to be issued all

 

All the Tweet FAQ’s Can be Accessed here 

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