FAQS on GST 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.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.
3.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.
4. 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.
5. 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.
6.If I register voluntarily though turnover is less than 20Lakhs, am I required to pay tax from 1st supply I make post registration?
Yes, you would be treated as a normal taxable person.
7. 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.
8.My all outward supplies are export services. In this case is it compulsory to register under GST?
Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.
9.Whether job worker is required to register? Whether composition scheme is available to a job worker?
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.
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.Suppose I am in composition scheme in GST. If I purchase goods from unregistered person, then GST will be paid to Government by me or not?
Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.
FAQS on Input Tax Credit
1.How one can use SGST credit for the payment of IGST on another state?
SGST Credit can be used for payment of IGST liability under the same GSTIN only.
2.Can one State CGST be used to pay another state CGST?
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.
3.In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?
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.
4. 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.
FAQS on Returns
1. What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance?
Advance refunded can be adjusted in return.
2. Do registered dealers have to upload sale details of unregistered dealers also in GST?
Generally not.But required in case of inter-State supplies having invoice value of more than Rs 2.50 Lakhs.
FAQS on Invoices
1.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.
2. 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.
3. 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.
4.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.
5. How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Thesupplier may issue credit note to the customers.
6.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 on self.
FAQS on Supply
1.Should we discharge GST liability for all reverse charge having small amounts of Transaction or any amount limit is there?
It has been decided that Rs. 5000/- 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.
2. How to comply with 9(4) (Reverse charge )of CGST Act if POS is in another State of the unregistered supplier?
Any person making inter-state supply has to compulsorily obtain registration and therefore in such cases, section 9(4) will not come into play.
3. 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?
Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.
4. Salary by partnership firm to Partners as per Income Tax Act liable to GST?
Salary will not be liable for GST.
5. Do I need to pay under RCM if I purchase stationary worth Rs.100 from an unregistered stationery shop?
It has been decided that Rs. 5000/- per day exemption will be given in respect of supplies received from unregistered person.
6. How will disposal of scrap be treated in GST?
If the disposal is in the course or furtherance of business purposes, it will be considered as a supply.
7. What is the difference in between 'Nil rated', 'taxable at 0%' and exempted goods and services? Especially in relation with ITC
Exempt supply includes Nil rated (taxable at 0%) and non-Taxable supplies and no ITC is available for such supplies.
8. Employer provides bus service, meal coupon, telephone at residence, gives vehicle for official and personal use, uniform and shoes, any GST?
Where the value of such supplies is in the nature of gifts, no GST will apply till value of such gifts exceeds Rs. 50000/- in a financial year.
9.Whether slump sale will attract GST. If yes then under which Section?
It will have the same treatment as normal supply.
10. The definition of composite supply and the description of same under Section 8 differ. Please explain consequences.
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.
11. 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?
Three levies are under three different statutes and are required to be separately accounted for.
12. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?
GST will be levied on the value charged for the supply only.
13.If I use my credit card to pay utility bills, will I end up paying GST twice; once for the service and second time for the credit card bill?
No, GST is not leviable on the entire credit card bill; it is charged only on the fee/commission charged by the credit card company.
14. We currently transport material on delivery challan and make a single bill at the end of the month. Can the same be done under GST?
If on every instance you are making a supply then an invoice needs to be issued. For any other movement of goods other than supply (as specified in Rule 55 of CGST Rules, 2017), a delivery challan may be issued.
15. Will service charge, as charged by some restaurants, be treated as consideration for a supply and hence considered liable for tax?
There is no distinction between goods or services under GST. Service charge like any other supply will be leviable to GST. It is also clarified that service charge is not a statutory levy. It is not levied by the Government.
16. I am a small manufacturer who supplies cycle parts to two manufacturing units in the same area. For every supply, I generate an invoice and take 500 Rs. flat for cartage and loading charges. What tax rate to be charged on the cartage and loading expenses?
This will be a composite supply where the principal supply (the goods) cannot be supplied without the cartage / unloading / transportation expenses. Therefore, the GST rate applicable will be the same as that of the principal supply, i.e, cycle parts, as provided under Section 8 of the CGST Act, 2017.
17. in big bazaar, if I purchase some vegetables and one bottle of coke where one of them is exempt and the other is to be charged with 40% GST. Will I be charged 40% on the whole amount?
No, these are two independent supplies at two different prices, they will be charged at the GST rate applicable to them even if they are purchased on the same invoice.
18. Iam going to a jewelry shop and selling 10 gm gold and purchasing a 20 gm set in return. GST will be charged on 10 gm or 20 gm?
The value to be charged on such transaction will be the open market value of the entire transaction as per Rule 27(a) of the CGST Rules, 2017. Therefore, GST be charged on entire 20 gm.
19.As a composition dealer, will I have to issue a self invoice if I purchase goods from an unregistered person?
Yes, a composition dealer will issue a self invoice as he is required to pay GST. He will not be eligible for ITC also.
20. Can I use my CGST/SGST credit to set off my IGST liability?
CGST credit can be first used toset off CGST liability. Whatever is left can be used to set off IGST liability. It cannot beused to set off SGST liability. Similarly, SGST credit can be used to set off SGST and IGST liability, in that order. It cannot be used to set off CGST liability. Please see Section 49 of the CGST Act, 2017.
21.Can tax paid in one state be used as ITC by the same firm in another state?
No, if a firm is registered in more than one state, then each such registration will be treated as a separate registered person. Cross utilization of credit available with two different registered persons is not allowed.
22. I run a restaurant where I serve alcohol and provide food etc. How do I generate my invoices. What will attract GST and what will attract VAT?
Since, you are providing both taxable and non-taxable supply. You will charge VAT on the non-taxable supply (which is alcohol for human consumption) and GST on all other taxable supplies.
23. 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.
24.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 to DTA are treated as imports.
