GSTonlineNow - remain updated with the latest happenings in the field of GST.

Extension of the time limit for furnishing of the annual return specified under section 44 of CGST Act, 2017 G.S.R.142 (E)/ Notification No. 04/2021 – Central Taxdated 28th February, 2021 In exercise of the powers conferred by sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with rule 80 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby makes the following amendment in the

Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification Circular No. /02/2021-GST / F. No. CBEC-20/16/38/2020-GSTdated 23rd February, 2021 Notification No. 14/2020-Central Tax, dated 21st March 2020 had been issued which requires Dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. 01.12.2020. Further, vide Notification No. 89/2020- Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification

Persons to whom provisions of sub-section (6B) or sub-section (6C) of section 25 of CGST Act will not apply G.S.R.132 (E)/ Notification No. 03/2021 – Central Taxdated 23rd February, 2021 In exercise of the powers conferred by sub-section (6D) of section 25 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council and in supersession of the notification of the Government of

Standard Operating Procedure (SOP) for implementation of the provision of suspension of registrations under sub-rule (2A) of rule 21A of CGST Rules, 2017 Circular No. 145/01/2021-GST / F. No. CBEC-20/06/01/2021-GSTdated 11th February, 2021 As you are aware that vide notification No. 94/2020- Central Tax, dated 22.12.2020, sub-rule (2A) has been inserted to rule 21A of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the CGST Rules). The said provision provides for immediate suspension of registration of a person,

Amendment to jurisdiction of Central Tax officers G.S.R.18 (E)/ Notification No. 02/2021 – Central Taxdated 12th January, 2021 In exercise of the powers conferred under section 3 read with section 5 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and section 3 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Government, hereby makes the following notification further to amend the notification of the Government of India, Ministry of Finance, Department of Revenue No.

Waiver of late fee for FORM GSTR-4 filing in UT of Ladakh for Financial year 2019-20 G.S.R. 785(E)/ Notification No. 93/2020 – Central Taxdated 22nd December, 2020 In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), read with section 148 of the said Act, the Government, on the recommendations of the Council, hereby makes the following further amendments in the

Bring into force Sections 119,120,121,122,123,124,126,127 and 131 of Finance Act, 2020 S.O.4643(E)/ Notification No. 92/2020 – Central Taxdated 22nd December, 2020 In exercise of the powers conferred by sub-section (2) of section 1 of the Finance Act, 2020 (12 of 2020) (hereinafter referred to as the said Act), the Central Government hereby appoints the 1st day of January, 2021, as the date on which the provisions of sections 119, 120, 121, 122, 123, 124, 126, 127 and 131 of the said

Extension of the due dates for compliances and actions in respect of anti-profiteering measures under GST till 31st March, 2021 G.S.R. 759(E)/ Notification No. 91/2020 – Central Taxdated 14th December, 2020 In exercise of the powers conferred by section 168A of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and section 21 of the Union Territory Goods and Services Tax Act, 2017 (14

Amendment to Notification no. 12/2017- Central Tax dated 28th June, 2017 G.S.R. 747(E)/ Notification No. 90/2020 – Central Taxdated 1st December, 2020 In exercise of the powers conferred by the first proviso to rule 46 of the Central Goods and Services Tax Rules, 2017, the Central Board of Indirect Taxes and Customs, on the recommendations of the Council, hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.12/2017 – Central

Waiver of penalty payable for noncompliance of the provisions of notification No.14/2020 – Central Tax G.S.R. 745(E)/ Notification No. 89/2020 – Central Taxdated 29th November, 2020 In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council, hereby waives the amount of penalty payable by any registered person under section 125 of the said

Implementation of e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 100 Cr from 01st January, 2021 G.S.R. 704(E)/ Notification No. 88/2020 – Central Taxdated 10th November, 2020 In exercise of the powers conferred by sub-rule (4) of rule 48 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 13/2020 –

  Extension of the due date for furnishing of FORM ITC-04 for the period July- September 2020 till 30th November, 2020 G.S.R. 703(E)/ Notification No. 87/2020 – Central Taxdated 10th November, 2020 In pursuance of section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) and sub-rule (3) of rule 45 of the Central Goods and Services Tax Rules, 2017, the Commissioner, with the approval of the Board, hereby extends the time limit for furnishing the declaration in FORM

ResciSSION OF the Notification 76/2020-Central tax dated 15th August, 2020 G.S.R. 702(E)/ Notification No. 86/2020 – Central Tax, dated 10th November, 2020 In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017, the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations on the

Special procedure for making payment of 35% as tax liability in first two month G.S.R. 701 (E)/ Notification No. 85/2020 – Central Taxdated 10th November, 2020 In exercise of the powers conferred by section 148 read with sub-section (7) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017), (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the registered persons, notified under proviso to sub-section (1) of

class of persons under proviso to section 39(1) G.S.R. 700 (E)/ Notification No. 84/2020 – Central Taxdated 10th November, 2020 In exercise of the powers conferred by proviso to sub-section (1) of section 39 read with proviso to sub-section (7) of section 39 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council, hereby notifies the registered persons, other than a person

Extension of the due date for FORM GSTR-1 G.S.R. 699 (E)/ Notification No. 83/2020 – Central Taxdated 10th November, 2020 In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.

Amendment carried out in sub-section (1), (2) and (7) of section 39 vide Finance (No.2) Act, 2019 G.S.R. 4043 (E)/ Notification No. 81/2020 – Central Tax,dated 10th November, 2020 In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance (No. 2) Act, 2019 (23 of 2019), the Central Government hereby appoints the 10th day of November, 2020, as the date on which the provisions of section 97 of the said Act shall come

Amendment in notification no. 41/2020-Central Tax dated 05th May, 2020 to extend due date of return under Section 44 till 31st December 2020 G.S.R. 679 (E)/ Notification No. 80/2020 – Central Taxdated 28th October, 2020 In exercise of the powers conferred by sub-section (1) of section 44 of the Central Goods and Services Tax Act, 2017 (12 of 2017), read with rule 80 of the Central Goods and Services Tax Rules, 2017, the Commissioner, on the recommendations of the Council, hereby makes

Amendment in notification No. 12/ 2017- Union Territory Tax (Rate) so as to exempt satellite launch services provided by ISRO, Antrix Co. Ltd and NSIL G.S.R. 645 (E)/ Notification No. 05/2020 – Union Territory Tax (Rate)dated 16th October, 2020 In exercise of the powers conferred by sub-sections (3) and (4) of section 7, sub-section (1) of section 8 and clause (iv) and clause (xxvii) of section 21 of the Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with

Amendment in notification No. 9/ 2017- Integrated Tax (Rate) so as to exempt satellite launch services provided by ISRO, Antrix Co. Ltd and NSIL G.S.R. 644 (E)/ Notification No. 05/2020 – Integrated Tax (Rate)dated 16th October, 2020 In exercise of the powers conferred by sub-sections (3) and (4) of section 5, sub-section (1) of section 6 and clause (xxv) of section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), read with sub-section (5) of section 15

Stipulation “allowed loss and consumption” is a condition of the contract and cannot be treated as a consideration for the contract entered into between the parties. “Allowed loss and consumption” will not form part of the “consideration” for the purpose of levy of service tax. Finance Act, 1994 – Section 67 – Service tax – Valuation of taxable service – Whether service tax applicable on the value of pre-fixed quantum of LNG identified towards allowed loss and consumption on the ground

As the law now stands, input tax credit is not available to CMS Info Systems Ltd. on purchase of motor vehicles, i.e., cash carry vans, which are purchased and used for cash management business and supplied post usage as scrap.

Neither during the pre-negative list nor post negative list, service tax could not be levied on deputation of employees from a group company based outside India to the Appellant in India. Finance Act, 1994 – Section 65(68) read with section 65(105)(K)/section 65B(44) – Pre-negative list) / Post negative list – Whether the deputation of employees from a group company based outside India to the appellant in India can be leviable to service tax? The issue involved in this appeal is similar

Proviso (ii) of the opening paragraph of the Notification No.05/2017-CT (Rate) dated 28th June, 2017, inserted vide Notification No.20/2018- CT (Rate) dated 26th July, 2018, is ex facie invalid and liable to be struck down as being without any authority of law. CGST Act, 2017 – Section 54 (3), proviso (ii) read with proviso (ii) of the Notification No.05/2017-CT (Rate) dated 28th June, 2017 – Refund of tax – Circumstances in which unutilised ITC can be refunded – Whether accumulated

The press release dated 18th October, 2018 could be said to be illegal to the extent that its para 3 purports to clarify the last date for availing ITC relating to the invoices issued during the period from July 2017 to March 2018. CGST Act, 2017 – Section 16(4) read with section 39(1) and with rule 61 of CGST Rules – ITC – Last date of availing – Whether para 3 purporting to clarify that the last date for availing

Where the court is satisfied that the Appellate Authority should have at least indicated to the petitioner that it proposed to take into consideration the ‘new grounds’ and further afford an opportunity to the petitioner to place on record agreements or other documentary evidences, in order to meet these ‘new grounds’, the failure to do so has not only resulted in violation of principles of natural justice, but occasioned serious prejudice to the petitioner and, therefore, the impugned order

GST would be payable on goods distributed free of cost as per rule 27. CGST Act, 2017 – Section 7 read with rule 27 of CGST/KGST Rules, 2017 – Supply and value of goods – Whether GST payable on goods distributed free of cost for the purpose of reinstating connectivity in flood ridden areas? To operationalise the commitment of the applicant to provide goods at free of cost to Kerala State Electricity Board for flood renovation work, the applicant instructed its

Transfer of business as a going concern is exempted from GST in terms of Serial No. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017. CGST Act, 2017 – Section 11(1) read with Serial No. 2 of the Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 – Exempt services – Whether “transfer of a business” as a going concern on slump sale basis is exempt from the levy of GST in terms of serial No. 2 of the

The transfer of development rights is immovable property in terms of section 3 (26) of General Clauses Act, 1897 and no service tax is payable as per the exclusion in terms of section 65B(44) of the Finance Act, 1994.

Exemption under GST on goods supplied to and from duty free shop (‘DFS’) is rightly conferred. Claims of any accumulated unutilised ITC are refundable. Integrated Goods and Services Tax Act, 2017 – Section 5(1), proviso – IGST on goods imported into India – Whether IGST is payable on goods procured by DFS? Point of time is one of the essential ingredients for levy of integrated tax on supply of goods imported into India and is governed by the proviso to section 5

Where the respondent is not providing any intermediary service, no service tax is payable by it. Place of Provision of Service Rules, 2012 - Sub-rule 2(f) read with section 2(13) of IGST Act, 2017- Intermediary services - Whether the services provided are intermediary services and no service tax is payable? Where there is no arrangement or facilitation of the main service between two parties by a third person and more than two companies are involved, they would not automatically be termed as

‘Applicant is required to charge GST on the total amount including the cost of diesel, i.e., on the total freight amount inclusive of the cost of diesel so provided by the service recipient. CGST Act, 2017 – Section 15(2)(b) – Value of taxable supply - Whether GST to be charged on freight amount excluding diesel cost or on total amount which is inclusive of diesel cost? The service recipient is providing diesel to the vehicles used by supplier to transport cement/clinker.

The prosecution for offences contained in sub-section (1) of section 132 does not depend upon the completion of assessment. Arrest is possible even before adjudication or assessment. CGST Act, 2017 – Section 132(1) – Punishment for certain offences – Whether the petitioners are entitled to protection against arrest in the facts and circumstances of the case ? The Act provides for certain types of assessments. But, to say that a prosecution can be launched only after the completion of the assessment

‘The petitioner is entitled to re-credit the amount of refund rejected to the electronic credit ledger on the basis of Form GST RFD-PMT 03. CGST Rules, 2017 – Rule 93(2) – Rejected refund claim – Re-credited to electronic credit ledger – Whether the petitioner is entitled to re-credit the amount of refund claim rejected suo moto on the basis of Form GST RFD-PMT 03 issued by the respondents in its electronic credit ledger? In terms of sub-rule (2) of rule 93,

The claim made by the Revenue for interest on the input tax credit (ITC) portion of the tax (i.e., interest computation on total/gross tax liability) cannot be found fault with. CGST Act, 2017 – Section 50(1) – Interest on delayed payment of tax – Whether the liability to pay interest under sub-section (1) of section 50 is confined only to the net tax liability or whether interest is payable on the total tax liability including a portion of which is liable

The warehouse being constructed is immovable property. The input tax credit is, therefore, not admissible on the inward supplies for construction of the said warehouse, as the credit of such tax is blocked under clause (d) of sub-section (5) of section 17 of the GST Act. GST Act, 2017 – Section 17(5) – Blocked input tax credit – Whether input tax credit is admissible on the inward supplies for construction of a warehouse on leasehold land, using pre-fabricated technology warehouse? The applicant

Small business exemption, provided under section 22, is eligible to the co-owners separately in the case of jointly owned property where the rent is collected together, but divided equally and transferred to the respective co-owner. Engaging a co-owner to collect and distribute rent among all the owners for administrative convenience has no implication on the business exemption under section 22 for individual co-owners.

Activity of the applicant of providing complementary tickets free of charge to some persons would be considered supply of service as per provisions of clauses (a) and (d) of sub-section (1) of Section 7 and would, therefore, be leviable to tax as per provisions of section 9

The amount paid to authorized dealers towards “rate difference” after effecting the supply of goods by the applicant to the dealers cannot be considered for the purpose of arriving at the ‘transaction value’ in terms of section 15 of the CGST Act. Therefore, the amount paid to authorized dealers towards “rate difference” after effecting the supply of goods would be allowed under section 15(1), read with section 34(1), of the CGST Act or under section 15(3) read with section 34(1). CGST

Services of transportation, in-transit insurance and loading/unloading, being ancillary to the principal supply of goods, shall be treated to taxation under section 8 (a) of the GST Act, and the consideration receivable on that account is to be taxed accordingly. CGST Act, 2017 – Section 8 read with section 2(30) – Supply – Severable/divisible contract – Taxability of services supplied – Whether service of transportation, in-transit insurance and loading/unloading, being ancillary to principal supply of goods, would be liable for taxtaion

This article is intended to explain ‘interest’ and ‘penal interest’ under the GST regime.

In this article, an attempt has been made to amplify and explain the restrictions and prohibitions as contained under in clause (d) of sub-section (5) of section 17 of Central Goods and Service Tax Act, 2017 which is popularly referred to as ‘blocked credits’.

In this article, the author dwell on the order of utilisation of input tax credit as laid down in sub-section (5) of section 49, section 49A and section 49B of the Central Goods and Services Tax Act, 2017 and rule 88A of the Central Goods and Services Tax Rules, 2017. Order of Utilisation as per sub-section (5) of section 49 of the Central Goods and Services Tax Act, 2017 – Effective from 1st July, 2017 to 31st January, 2019

For the purpose of levy of GST on second-hand goods (used goods), the second-hand goods are divided into two parts, viz., (i) second-hand vehicles and (ii) other second-hand goods. This article gives an overview of how second hand goods are taxed under the GST regime.

This article is based on Form GSTR 9C prescribed vide Notification No. 74/2018 dated 31st December, 2018 and gives clause wise analysis of the form. Information and interpretations in this article have been gathered from ICAI publications and materials used by faculties during the certificate course on GST by the ICAI.

The Central Goods and Services Tax Act, 2017 contains in it various facets which are adopted (or adapted) from the erstwhile services tax law (Finance Act, 1994) or ‘foreign legislations and jurisprudence’. One such facet is the concept of ‘composite supply’. Composite supply as a concept under GST law has been adapted from the erstwhile concept of bundled supply as defined in Explanation to section 66F of Finance Act, 1994 and foreign jurisprudence. In this article, the author throws light

In this article, the author gives a bird’s eye view of renewal energy under the GST regime.

In this article, the author discusses various aspects of ‘First Annual Return of GST’

In this article the author reviews orders passed by the National Anti-Profiteering Authority constituted by the Central Government to examine whether input tax credit availed by any registered person or the reduction in the tax rate have actually resulted in reduction in the price of the goods or services or both supplied by him

In this part of series on show cause notice, the author delves into examination and cross-examination of witnesses whose statements are relied upon by the department and parties

The Constitution Bench of the Supreme Court in the case of Commissioner of Customs v. Dilip Kumar [Civil Appeal No.3327 of 2007 dated 30th July 2018] has held that the benefit of ambiguity in exemption notification cannot be claimed by the subject/assessee and it must be interpreted in favour of the revenue/state and the exemption notifications

In order to give effect to the decisions taken in 28th GST Council meeting, the Parliament has amended CGST Act, 2017. In this article the author discusses amendments introduced by the Central Goods and Services Tax (Amendment) Act, 2018.

In this article, the author looks into first audit of multiple compliances under the regime of the Central Goods and Services Tax Act, 2017 and the Rules made thereunder.

Electronic way bill (e-way bill), under the GST regime, is receipt issued by a carrier giving details and instructions relating to shipment of consignment of goods. In this article the author explains the e-way mechanism under rule 138 of the Central Goods and Services Tax Rules, 2017

In this article, the author examines ruling of the Advance Authority on duty free shops supplies.

In this article, the author provides insight into show cause notice issued by the authorities in the GST regime.

In this article, the authors share some points that need to be taken care of while finalizing the books of account. As the financial year had two indirect tax regime, i.e., pre-GST (excise, service tax and VAT) and post-GST, GST transition is not only about a tax change but a complete business, finance, accounting and reporting overhaul. This being the first financial year since GST implementation, it is imperative to familiarize with the legal provisions under the GST Act while

The brief note is intended to explain conditions and safe guards for furnishing letter of undertaking required to be obtained under section 16 of the IGST Act, 2017 read with rule 96A of the CGST Rules, 2017

In this article, the author provides an overview of GST as indirect tax reforms.

The article is intended to give an overview of goods and service tax and the way forward in the years ahead. The author feels that for the Government to succeed in its ‘One Tax One Nation’ robust system, with minimal compliance burden, minimal administration cost and minimal working capital blockage will be headed.

QUERIES AND ANSWERS FROM EXPERTS* [2019] 6 GSTPT (WA) 3 ANSWERED BY CA VIRANDER KUMAR CHAUHAN, DELHI (1) XYZ is registered with ‘MSME’ and as per the MSME provisions, customers, who had not paid within the prescribed time limit, are paying interest to XYZ. Is XYZ liable to pay GST on the interest received? (2) XYZ had taken loan from PQR. The loan amount was re-paid before the due date and therefore as per the terms, PQR had paid interest to XYZ. Is

FAQs on Real Estate (Part II)* [2019] 5 GSTPT (WA) 36 A number of issues have been raised regarding the new GST rate structure notified for real estate sector effective from 1st April, 2019. A compilation of Frequently Asked Questions (FAQs) containing 41 questions was issued on 7th May, 2019. Part II of the FAQ is presented below. The answers to the FAQs have been given in simple language for guidance and easy understanding of all stakeholders in the real estate sector.

FAQs on Real Estate (Part I)* [2019] 5 GSTPT (WA) 19 A number of issues have been raised regarding the new GST rate structure notified for real estate sector effective from 1st April, 2019. A compilation of Frequently Asked Questions (FAQs) is presented below. The answers to the FAQs have been given in simple language for guidance and easy understanding of all stakeholders in the real estate sector. They do not have force of law. In case of conflict, the gazette notifications,

Queries and Answers from Experts* [2019] 5 GSTPT (WA) 17 Answered by CA Praveen Sharma, Delhi and by CA Rishabh Aggarwal, New Delhi and By CA Prakhar Bansal, Bilaspur Deposited CGST wrongly against IGST. Can it be adjusted against IGST liability? If not, how to claim refund or adjustment? Is remedy available? Only way is to adjust the cash balance in CGST against the CGST liability only. Further, two options that are available are : either to adjust in future CGST liability or refund

Queries and Answers from Experts* [2019] 5 GSTPT (WA) 1 Answered by CA Virander Kumar Chauhan, Delhi On Inverted Duty Structure Department has taken a view that it does not process refund of GST paid on input services as it processes refund only on goods. Whether department can do so or not? Refund of only inputs is available in case of inverted duty structure. Refer rule 89(5) amended vide NN-21/2018-Central tax. Immovable Property in Delhi of a person based in Mumbai and rented out to

Frequently Asked Questions [2018] 4 GSTPT (WA) 5 ANSWER BY CA SUSHEEL KUMAR GUPTA, DELHI 1. Whether GST is applicable on rental services provided by the State Government on account of rent of telecom towers installed at its building by a company? Is this service covered under reverse charge mechanism (RCM), if yes, then date of coverage under RCM. GST is applicable on rental of immovable property by State Government vide Notification No. 3/2018-Central Tax (Rate) dated 25th January, 2018, renting of immovable property

PRACTICAL QUERIES* [2018] 4 GSTPT (WA) 13 ANSWER BY CA DEVENDER SHARMA, FARIDABAD After closing its business firm individual sold its fixed assets to a private limited company. firm deals in readymade garments. Do firm has to charge GST on sale of asset. What if there is no consideration paid (as purchasing company is of same individual)? You will have to charge GST and take credit in private limited. Will credit note issued for sales made during service tax regime have to be shown under

PRACTICAL QUERIES* [2018] 4 GSTPT (WA) 7 ANSWER BY CA PRAKHAR BANSAL, BILASPUR We have taxable turnover in 3 months and both taxable turnover and exempt turnover in next 6 months. While calculating ITC Reversal which turnover should be taken and from when? For the months in which you have taxable as well as exempt turnover, the ratio of the same will be used to determine the eligible ITC and reversal thereof. Further you have to check the eligibility of such ITC annually as

Salient Features of E-way Bill [2018] 3 GSTPT (WA) 29 What is e-way bill E-way bill (EWB) is electronic document Contain two parts – Part A and Part b To be generated before causing movement of goods on GST common portal as per rule 138 of CGST 2017 To be generated by registered person who cause movement of gods or transporters Prior the actual movement of goods Generation of e-way bill on EWB portal Stakeholder of EWB Suppliers – Generate the e-way bills and

Queries and Answers from Experts* [2018] 4 GSTPT (WA) 1 ANSWERS BY CA PRAKHAR BANSAL, BILASPUR Whether ITC is eligible on repair, maintenance and insurance of motor vehicle used for business? You are not eligible for availing ITC on repair, maintenance and insurance of motor vehicle (MV) by virtue of section 17(5) of the CGST Act. If in case you are eligible to take credit of MV (i.e., the same is being used for purpose of transportation of goods or providing or taxable supply

Frequently Asked Questions - GST Rates [2017] 2 GSTPT (WA) 74 Will GST be charged on actual tariff of declared tariff for accommodation service? What will be GST rate if cost goes up (more than declared tariff) owing to additional bed. Where will be the declared tariff be published? Same room may have different tariff be at different times depending on season or flow of tourists as per dynamic pricing. Which rate to be used then? If tariff changes between booking and

Frequently Asked Questions - Composition, Exports, Invoice & Returns, Input Tax Credit, Job-work and Levy [2017] 2 GSTPT (WA) 64 COMPOSITION Whether a person can avail the composition scheme on small retail trading of goods if he is holding both incomes like sale of business : Rs. 25 lakh (small retail trader) and rental incomes : Rs. 12 lakh, whereas the person was registered earlier in VAT composition scheme and was paying service tax on rental income? Renting is a service and supplier of

Frequently Asked Questions - Registration/ Composition Related Issues [2017] 2 GSTPT (WA) 57 If I buy material from a supplier unregistered under GST, do I have to pay GST in RCM and can I avail ITC of the same? Yes you have to pay GST via reverse charge mechanism (RCM). You can avail ITC of the GST so paid if you are otherwise eligible. Can an unregistered dealer supply goods to other States if his turnover is below Rs. 20 lakh? No. The supplier would

Questions & Answers - Issues on HSCN Code and GST Rates Applicable to Various Commodities Q 1. What is the HSN Code for Mahua Flower and its GST rate? A. Mahua flower falls under heading 1212 and attract 5 per cent GST. Q 2. What is the HSN Code for SAL Leaves which is used for making plates and its GST Rates? A. Sal leaves are classified under heading 0604 and attract nil GST Q 3. What is the HSN Code for sabai grass (a

Questions & Answers - Basic and Primary Issues on GST to Know it Better [2017] 2 GSTPT (WA) 45 LEVY Q 1. What is the taxable treatment of the services provided by a service provider in respect of such services which are covered under Notification No.25/2012 - Mega Exemption Notification for Government, railways and other Departments? Such services are exempt from service tax, hence, who will bear the GST element of 18 per cent, the service provider or the principal employer? A. Exemption notification

Frequently Asked Questions on Textiles [2017] 2 GSTPT (WA) 38 As per Chapter 53 heading 5303 of the GST rate schedule, raw jute has been kept at the NIL rate slab. Thus, it is presumed that suppliers dealing only in raw jute are not required to register themselves under GST. But Jute Mills are asking their raw jute suppliers to mandatorily register themselves else their supplies would not be accepted. Please clarify whether raw jute suppliers are liable for registration? Raw jute has

Frequently Asked Questions on Applicability of GST on Traders [2017] 2 GSTPT (WA) 33 How will GST benefit the trading community? Under GST, a trader would be entitled to avail input tax credit paid on his domestic procurements of goods and services unlike the present indirect tax regime. Presently, a significant portion of indirect taxes, namely, Central Excise and Service Tax form part of the cost component for a trader. This will not be the case under GST. He will now be able

Frequently Asked Questions on Composition Levy [2017] 2 GSTPT (WA) 26 What is composition levy under GST? The composition levy is an alternative method of levy of tax designed for small taxpayers whose turnover is up to Rs. 75 lakh (Rs. 50 lakh in case of few States). The objective of composition scheme is to bring simplicity and to reduce the compliance cost for the small taxpayers. Moreover, it is optional and the eligible person opting to pay tax under this scheme can

Frequently Asked Questions on Invoicing [2017] 2 GSTPT (WA) 21 GENERAL What are the specific mandatory fields in a GST compliant invoice? To issue and receive a GST compliant invoice is a prerequisite to claim ITC. If a taxpayer does not issue such invoice his customer loses ITC claim and the taxpayer loses its customers. Here we mention the mandatory fields in an invoice : Invoice number and 2017/10/24 Customer name Shipping and billing address Customer and taxpayer’s GSTIN Place of supply HSN code Taxable

Frequently Asked Questions on GST [2017] 2 GSTPT (WA) 1 REGISTRATION 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