Levy

Q1.What is the taxable treatment of the service provided in respect of such services which are covered under notification 25/2012 mega exemption notification for government, railways and other department? Such service is exempt from service tax, hence who will bear the GST tax element 18% the service provider or the principle employer?

Ans-Exemption notifications for the service have been notified. Refer Not.no.12/2017-Central Tax (rate) & Not. No 9/2017 –integrated Tax (rate).

Q2.Normally the service provider does not issue invoice in government jobs. The Section /departmental engineers prepare the measurement books and record the details of work done on a subsequent date. Hence how point of service will be reckoned since the service provider does not raise the invoice?

Ans-Time of supply of service has been explained in section 13 of CGST Act. The supplier of service will have to issue a tax invoice within 30 days of supply of service (the measurement is finalized by the departmental engineer or service provider whichever is earlier.)in case of reverse charge , government department will raise invoice accordingly [refer       section 13(3)].

Q3.In construction work after raising of the invoice, physical verification of the same is done by the engineer of the client and this work is delayed abnormally; on some instance the period taken goes up to two months, then how the point of service will be determined?

Ans-Times supply of service has been explained in section 13 of CGST Act. The date of issue of invoice will the time of supply .

Q4.Is it practically feasible that service provider submits an invoice execution of work and the principle employer make arrangement foe the payment of the bill after three months whereas per point of service stand for one month from the date of issue raise invoice or service whichever is earlier and the service provider has to pay service tax @ 18% on value of work done although he has not received any payment for the client till date?

Ans-Time of supply of service has been explained section 13 of CGST Act. The terms of payment do not decide the taxability of a particular transaction. So even if a payment for a particular supply has not been received it will still the liable for GST.

Q5.Intermidry service and service provided by banking company to its amount holder –intra state and inter state supple?

Ans-Place of supply of service provision in subsection (12) of section 12 of may be refers to.

Q6.Cross border service provided by an Indian branch to offshore branch / HO which are not intermediary services – are they exempted?

Ans-section 13 of IGST Act, 2017 may be referred the place of supply is outside India but as the supplier is located in India it is a case of interstate supply and subject to IGST. I will be Zero rated if the sale proceed are realized in convertible foreign exchange.

Q7.Pure agent issuance of a circular similar to CBEC circular on STT on Stamp duty on 17thSep 2010?

Ans- Details rules provided please see rules 33 of CGST rules.

Q8.charging of GST in case of travel by a passenger to beyond India’s border viz ;to Pakistan or Bangladesh?

Ans- The place of supply is the place of embarkation for the continuous journey. If a passenger embarks as for journey to a place of Pakistan, it is taxable because the place of embarkation is in the taxable territory?

Q9.Levy of GST in respect of ticket booked in India, if place of boarding is outside India?

The place of supply is outside India but as the suplierr If the it is a case of interstate supply and subject to IGST it will be zero rated if the sale proceeds are realized in convertible foreign exchange.

Reverse charge

Q10.If an Assessee pays GST on behalf of an unregistered supplier /SSI/exempted unit ,will he be able to take input tax credit of the GST paid on reverse charge basis?

Ans-Yes input tax credit of tax paid on reverse charge basis by the recipient and the credit can be taken even in the same month.

Q11.wheather any Indian providing service to U.S. based company on contract basis is required to pay reverse charges on charges deducted by U.S. based company?

Ans-It depends on the nature of charges deducted. The place of supply is outside India but as the supplier is located in India .it is case of inter-state supply and subject to IGST .it will be zero rated if the sale proceeds are realized in convertible foreign exchange .

Q12.Under the new GST Act, the liability or payment of GST still with consignee or consignor?

Ans-Reverse charge mechanism has been provided by GST law for GTA and the recipient of GTA service (he may be consigner or consignee) is required to pay GST. Notification No.13/2017-central tax (rate) may be referred.

13. Wheather RCM is applicable on payment made for hiring of transport from unregistered GST traders?

Ans-RCM under the section 9(3) is applicable for GTA and nit for transport of goods .where the vehicle is taken on rent or lease, it will be supply of service under 9966 or 9973 and supply of service will be taxable under RCM under section 9(4).

Q14.wea are also paying small payment like unloading charges, detention charges and other miscellaneous payment to patty contractors .Is GSTN under reverse charges applicable for these payment ?

Ans-If you not registered payment on reverse charge under section 9(4) of CGSTAct.2017is not required .that said if such services availed fall within the domain of any service that is  subject to reverse charge under section 9(3)of CGST act2017,you have to get yourself registered and GST has to be paid.

Q15.Can any unregistered transpotor having a turnover below 20lakhs carry the goods for a registered dealer?

Ans-Yes GTA carries the goods .GST on GTA service is liable to be paid on RCM basis by the recipient. The supply of service of goods transport by road transport other than a courier is exempted under notification No.9/2017-central Tax (rate).

Q16.wheather re-imbursement of expenses to staff comes under RCM?

Ans-Re-imbuement is an expense in the course or furtherance of business and if the same is against a taxable supply taken from an unregistered supplier, RCM will apply.

Q17.whether tax under RCM is applicable for expenses incurred toward doctors sponsorships programmed?

Ans-As per notification No.13/2017central Tax (rate)SI.No.4 sponsorship to any body corporate /partnership firm comes under RCM.

Registration

Q18.Do dealer having turnover below Rs.20 lakhs need to compulsorily register if they are supplying through online portal?

Ans-Yes as per section 24(ix)of the CGST Act 2017,person who supply goods or service or both other than supplies specified under subsection (5)of section (9)though such electronic commerce operator who is required  to collect tax at source under section 52 shall be compulsorily required to registered under the Act.

Q19.Does a medical service provide need to get registered under GST if his aggregate turnover [u/s2(6)]is more than Rs.20 lakh but has taxable supply of only an amount Rs.2.4 lakh p.a.?

Ans-Yes he should get registered and also GST on taxable supply.

Q20.Wheathr the registration under GST is compulsory by transport service provider.

Ans-No. if the entire service supplied by the transporter are covered under the reverse charge mechanism under section 9(3).

Q21.will from 1/7/17, my corner kiranewala charge me GST on good and service depending on his turnover or both and give me an authentic /printed memo for purchase?

Ans-Liability for registration under GST arises if the aggregate turnover is more than Rs.20lakh. If the corner kiranawala has turnover greater than Rs.20lakhin the proceeding financial year he is liable to be registered charge GST and provide you an invoice for your purchase.

Q22.How will Iknowif his turnover is below Rs.20lakhs and if is exempt from GST and that he will  not charge me any GST.

Ans-Person having turnover over 20lakh will take registration and registration certificate will be displayed at a prominent location along with GSTN on the name board. If you suspect that he has not taken registration a, complaint can be made and suo-moto registration will be given under Rules 16 of CGST Rules 2017.

Q23.Will all establishment display a certificate from government (display his turnover category) and their GST Registration no. which should be appears an all his cash memo /bill?

Ans-Yes for details Rules 18 of CGST Rules, 2017 may be referred to.

Q24.Does a trader who has turnover of less than Rs. 20lakh and are selling on e-commerce websites, have to register for GST?

Ans-Yes ,if such e-commerce operator is required to collect tax at source .please see section 24 of CGST Act,2017.

Q25.Can a trader whose account has been blocked by ecommerce portal apply for GST and still be eligible to sell for some period of time without GST ,till they get their GST registration completed?

Ans-Supply can take place during the process of registration and revised invoices can be issued in accordance with the provision of section 31(3)of the Act 2017.

Q26.Do traders having turnover less thanRs.20lakhs need to get registered under GST? If not ,how can they purchase primary goods from other states without having GST Registration No.?

Ans-Trader having turnover of less than 20Lakhs can buy from other  states also without registration except in case of those goods which are subject to reverse charge?

Q27.Do I, a mutual fund distributor working in Delhi ,need to register under GST, having income less than Rs.20Lakhs but working for offices that are registered in Mumbai and have branch office in Delhi ?

Ans- if you are supplying services to the branch office in the same state, it will be supply  and you will not be liable for registration .if you are making interstate supply ,you will be liable for registration and benefit of threshold exemption would not be admissible.

Q28.We are private Ltd.co.having head office at Mumbai and branch office in Gujarat and U.P dealing in product having tax rate @0% dealing intrastate and interstate supply ;since the product are 0%GSTproduct are we required to register under GST if turnover is above Rs.20 lakhs ?

Ans-No.

Q29.We are purchasing from Haryana and selling in Haryana and also interstate sales .currently we do not have any GST registration in Haryana .Since the product 0%GSTare we suppose to registrar in Haryana?

Ans-No. Registration is required as you are dealing exclusively in product that is wholly exempted.

Q30. We are paying freight charges to our GTA for which currently we are paying service tax at at applicable rate .in case of GST what we understand is GTA is exempt from obtaining GST registration no. Are we required to pay GSTN @5%on freight for transportation of goods which                                                             are 0% .in case of we are not required to obtain registration under GST if we are under 0% product how do we make payment for the same?

Ans-As you are business entity and availing GTA services you are liable to pay GST on GTA services on reverse charge basis and therefore liable to be registered .section 24of CGST Act,2017 may be referred.

Q31.please clarifies the position of GST in case of license Tour Guides having registered office in one state but providing service pan India?

Ans-If the presence of four guides is required in each state and he is supplying services from state then registration requirement in each state would be there.

Q32.If I already have a GSTIN do, I need to register separately as an input service distributor?

Ans-Yes, as per section 24(vii) of the CGST Act2017,an input service distributor is required to take separate registration under the Act.

Transition

Q33.How the deemed credit of available stock and work in progress (WIP) to be availed by an Aseesese?

Ans-The provision relating to deemed credit are contained in the provision to section 140(3) of the CGST Act 2017 and Rule 117(4) of the CGST Rules 2017.ITC at the rate of 60%is allowed where the central tax rate on goods id 9% or more; it is allowed at the rate of 40% in other cases .its allowed only after the payment of applicable tax. It can be taken in the first six tax period only .Deemed credit is allowed only  to trader not to manufacturer.

Q34.Is there is any provision/instruction under the CGST Act for taking/verifying the physical stock of the units as on 30th June 2017.itis pertinent mention here that some  state excise &taxation department are undertaking the excise stock taking/verification of the unites which were earlier registered with them .matter may please the clarified.

Ans-There is no such bar under the CGST Act,2017.

Q35.Till the time E-way bill system is fully develop with which document /procedure should be followed for interstate supply of goods?

Ans-The goods CAN BE transported with document like tax invoice, bill of supply and delivery challan.Document as may be prescribes under rule 138of the SGST Rules, 2017will also have to be carried by the person in charge of the conveyance.

Q36.Government has allowed increase in MRP due to additional incident of GST can it be done for stock lying with dealer and retailer or only for stock lying with   manufacture and importers?

Ans-The price can be revising where the incident of tax has increase under the GST. However one should adhere to the requirement under the statutes like the legal metrology Act also.

Q37.Does tax needs to be paid on advance in hand as of June 30th for goods to be supplied from July1?

Ans-No.

Q38.Builder is demanding balance money due to tax rate changed under GST .Do we have to pay service tax on entire amount of registration under GST also if abatement provided before GST is available or not?

Ans-Goods can be treated in transit only when the same have not been received by the recipient which is not the case in this scenario.

Q39.How to avail credit on raw material and packing material stored outside factory on which credit could not have been availed due to the specific restriction in the permission given by the excise department ?whether these goods can be treated as “in-transit “and credit be availed under section 140(5)within 30days of GST implementation?

Ans-Goods can be treated in transit only when the same have not been received by the recipient which is not the case in this scenario. 

Q40.clarity is needed on the period for which details of turnover need to be given in table 5(b)and 5(c) of form GST TRAN1.

Ans-period is given in the form itself i.e.01.04.2015 to 31.03.2017

Q41.The tax paid in excess in one month allowed to be adjusted against the tax liability due for the next month .what would be treatment of such excess payment of tax (service tax /Vat) for the last month prior last month ?

Ans-under transitional provision of all such excess ITC and cash can be Cary forward and GST can be paid from this month.

Q42.Will the facility of deemed credit of 60/40 percent GST under Rule 117(4)CGST rules be available to both trader and manufacturer ?

Ans-The facility will be available to all person other than manufacturer and supplier of services .provision to section 140(3) CGST Act refere.

Q43.There is a GST 28%on a product of MRP Rs.10 and the costing price of that product is Rs.90.90/-(taxable value +14.5%Vat)so the taxable value of that product will be 79.38amd if the GST of 28%will be added to be the amount without adding any profit then will be 79.38+22.22(28%GST) and the total value of the product will be Rs.101.60/-which is higher than the MRP?

Ans. MRP can be revised albeit with certain precautions and for only for certain time period. Press note of ministry of consumer affairs. Food & Public Distribution dated 04.07.17 may be referred to:

Q.44. Section 16 of IGST Act,2017 has a provision for Zero Rated supply under GST for supply of goods and services to SEZ Units-Need explicit clarity whether this also covers for supply of goods and services by one SEZ unit to another SEZ unit .e.g .Exchange levying fees and penalty to its trading members who are also IFSC units

Ans Yes Supply of goods and services by one SEZ unit to another SEZ unit would be considered zero related supplies under section 16 of the IGST Act, 2017.which deals with zero related supplies. Section 16 provides for zero rating of “Supply of goods or services or both to a SEZ developer or a SEZ Unit.” As supply in the question is to a SEZ developer or a SEZ unit. “it is covered under section 16.

Q.45 What shall be impact of tax on the works after 30.06.2017 for which tenders have been processed but acceptance letters not issued?

Ans: GST is payable on services supplied after 01.07.2017.

Q.46 Certain Fabrics were exempt from payment of central excise duty vides Notification No. 30/2004-CE dated 09-07-2004. This exemption was subject to the condition that the manufacturer has not availed Cenvat credit of duty paid on inputs. Thus the said exemption was not unconditional. Will ITC @ 40% of CGST be admissible to the taxable person in respect of such fabrics held in stock?

Ans.Yes, ITC would be admissible

Miscellaneous

Q.47. when would advance ruling applications submission begin?

Ans. The Government is the process of constituting Authority. It would be notified soon.

Q.48. when are the recommendations of the sector wise task force expected to be submitted to the GST Council. Can representations still be made to the sect oral task force?

Ans Representation can be submitted to the sectoral working groups.

Q.49. how will I know whatever GST I pay is really paid to government by various makers/sellers and not pocketed by the seller?

Ans. Person, selling to you, would have purchased his products/inputs from some supplier. That supplier while filing his outward supply details (GSTR-1) will quote the GSTIN of the your seller. And he will have accept the same in his GSTR-2. Therefore the system captures the data of your seller.Action can be subsequently taken in case of evasion of tax.

Q.50. is stock transfer possible without paying GST in case of takeover of a partnership firm by a private Limited Company?

Ans One has to see the conditions given in entry 4 of schedule II of the CGST Act, 2017. If it is supply as per this entry, it is taxable.

If you like my article, please share this on :


Search Professional Post Query Post Assignment Read More Articles

In case of business query on above subject, comment here or contact CA Chirag Chauhan




article author

CA Chirag Chauhan

Tax Expert
Chartered Accountant, CA Chauhan



CHECKOUT TRENDING ARTICLES


  • How to Pay Zero Tax for Income up to Rs 12 Lakhs from Salary for Financial Year 2016-17

  • Do not wait till 31st July to file your Income Tax Return – Keep Ready 9 documents to file before due date

  • Missed to Submit HRA declaration to Employer? You can claim HRA at the time of Filing Returns and get Refund from Income Tax

  • Features and Step wise process - Income Declaration Scheme 2016 – Convert your Black Money to White

  • How to Pay Zero Tax for Business Receipts -Turnover of Rs 1 Crore

  • How to Pay Zero Tax for Professionals (CA, CS, Lawyers, Doctors, etc) earning Income of Rs 16 Lakhs

  • Why you should file Income Tax Return? Benefits of Filing Income Tax Returns

  • How to save Rs 10 crore as retirement corpus

  • Having Turnover of Less than 10 Lakhs? How to File NIL Service Tax return with Circular No 033/2012

  • Starting a New Business or Profession? Compare Structure and type of Entity– Sole, Partnership, LLP or Company

  • Revised and Latest TDS Tax Deducted at Source Rate Chart for FY 2016-17 AY 2017-18

  • Exemption for Capital Gain Arising on Transfer of Resident House Property

  • WILL- Important points, Tax Advantages of will and Format of WILL

  • Revised and Latest TDS Tax Deducted at Source Rate Chart for FY 2016-17 AY 2017-18

  • Exemption for Capital Gain Arising on Transfer of Resident House Property

  • WILL- Important points, Tax Advantages of will and Format of WILL

  • Senior Citizens Tax Benefits in Income Tax Act - Filing, exemptions, advance tax and other benefits

  • Registration process for Trade Mark


  • GET FREE ARTICLE UPDATES VIA EMAIL

    Always stay updated with latest information on expertmile

    I hope by reading this article you got enlighten on ,GST FAQ on Queries relating GST receiving from various sectors further to mention before taken any financial decision based on this content it is prefered to take an expert opinion as matter can be subjective.