Govt. releases 100 FAQs on GST queries posted on twitter

Tweet FAQs
The tweets received by askGST_GoI handle were scrutinized and developed into a short FAQ of 100 tweets.
S. No.
Questions / Tweets Received
Replies
Registration
1.
Does aggregate turnover include value of inward supplies
Refer Section 2(6) of CGST Act.
received on which RCM is payable?
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
New registration would be required as
of firm was changed from proprietorship to partnership?
partnership firm would have new PAN.
3.
A taxable person’s business is in many states. All supplies
He is liable to register if the aggregate
are below 10 Lakhs. He makes an Inter State supply from
turnover (all India) is more than 20 lacs
one state. Is he liable for registration?
or if he is engaged in inter-State
supplies.
4.
Can we use provisional GSTIN or do we get new GSTIN?
Provisional GSTIN (PID) should be
Can we start using provisional GSTIN till new one is issued?
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
If the person is involved in 100% supply
GST from VAT as liquor is out of GST law?
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
Not liable to tax means supplies which
rated supply or abated value of supply?
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
A supplier of service will have to
requires separate registration for all states or a single
register at the location from where he
registration at state of head office will suffice?
is supplying services.
8.
Whether aggregate turnover includes turnover of supplies
Outward supplies on which tax is paid
on which tax is payable by the recipient under reverse
on reverse charge basis by the
charge?
recipient will be included in the
aggregate turnover of the supplier.
9.
If there are two SEZ units within same state, whether two
SEZs under same PAN in a state require
registrations are required to be obtained?
one registration. Please see proviso to
rule 8(1) of CGST Rules.
10.
Is an advocate providing interstate supply chargeable
Exemption from registration has been
under Reverse Charge liable for registration?
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
If services are being provided from
service from Nasik to other state require registration in
Nasik then registration is required to
other state?
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.
A separate & new registration is
Whether I can apply now & what is the procedure?
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.
The same can be filled while filing
What should I do? The status is migrated.
FORM REG-26 for converting
provisional ID to final registration.
14.
I have ST number on individual name and have migrated to
This conversion may be done while
GST.I wish to transfer this on my proprietorship firm.
filling FORM REG-26 for converting
provisional ID to final registration.
15.
Please tell if rental income up to 20 lacs attracts GST or
GST is leviable only if aggregate
attracts any other charge?
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
A person dealing with 100% exempted
is it necessary to register for GST, if the turnover exceeds
supply is not liable to register
₹20 lacs?
irrespective of turnover.
17.
Is it correct that person dealing exclusively in NIL rated or
There is no liability of registration if the
exempt goods/ services liable to register if turnover >
person is dealing with 100% exempt
20/10 Lakh?
supplies.
18.
If I register voluntarily though turnover is less than 20
Yes, you would be treated as a normal
Lakhs, am I required to pay tax from 1st supply I make post
taxable person.
registration?
19.
Whether a separate GSTIN would be allotted to a
Separate registration as tax deductor is
registered person for deducting TDS (he has PAN and TAN
required.
as well)?
20.
Is separate registration required for trading and
There will be only one registration per
manufacturing by same entity in one state?
State for all activities.
21.
I am registered in TN and getting the service from
Any person who makes make inter-
unregistered dealer of AP, should I take registration in AP
state taxable supply is required to take
to discharge GST under RCM?
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,
Only if you provide any supply from
will they have to register in Delhi? Will paying IGST from
Delhi you need to take registration in
Maharashtra suffice?
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
You can apply for cancellation of
registered under Service tax ?
Provisional ID on or before 31st July
2017.
26.
When turnover of agents will be added to that of the
No.
principal for registration?
27.
If I am not an existing taxpayer and wish to newly register
You would be able to apply for new
under GST, when can I do so?
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
Refunds under earlier laws will be
happen?
given under the respective laws only.
29.
As an exporter, how do I ensure that my working capital is
Appropriate provisions have been
not blocked as refunds?
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
Clean Environmental Cess on coal will
energy Cess on coal go or will it stay?
be replaced by GST Compensation
Cess.
Composition Scheme
31.
Suppose I am in composition scheme in GST. If I purchase
Yes, you will be liable to pay tax on
goods from unregistered person, then GST will be paid to
reverse charge basis for supplies from
Government by me or not?
unregistered person.
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
The export procedure for Nepal would
Goods Tax on Nepal. But, With GST, what tax will apply?
be same as that to other Countries.
34.
Are there exemptions for SEZ? How will a SEZ transaction
Supplies to SEZs are zero-rated
happen in GST regime?
supplies as defined in Section 16 of
IGST Act.
35.
How would the sale and purchase of goods to and from
Supply to SEZs is zero rated supplies
SEZ will be treated? Will it be export / input?
and supplies by SEZs are treated as
imports.


36.
Please clarify status of international export freight under
POS for transport of goods
GST as the same was exempt under POPS rules. It is zero
determinable in terms of sec 12(8) or
rated in most countries.
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
Such supply is treated as import and
IGST?
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?
Such supply is treated as import and
Today importer is paying both BCD and CVD.
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
SGST of one State cannot be utilized
from Rajasthan can be utilize for payment of SGST in
for discharging of output tax liability of
Madhya Pradesh?
another State.
40.
How one can use SGST credit for the payment of IGST on
SGST Credit can be used for payment
another state?
of IGST liability under the same GSTIN
only.
41.
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.
42.
In case of service supplied, should the credit be given to
Tax will be collected in the State from
the state where it is billed or the state it is rendered?
which the supply is made. The supplier
will collect IGST and the recipient will
take IGST credit.
43.
Company is engaged in manufacturing of cement &
Detailed rules for reversal of ITC when
power. Which rule to be referred for reversal of credit
the supplier is providing exempted and
related to power business?
non-exempted supplies have been
provided in ITC Rules.
44.
How will the credit / debit note from unregistered
Like invoice, credit/debit notes on
supplier be reported to GSTN and ITC claimed in the
behalf of unregistered person will be
same?
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
In such a case the person can issue one
person (B2C), is it required to issue tax invoice and bill of
tax invoice for the taxable invoice and
supply separately?
also declare exempted supply in the
same invoice.
46.
Do registered dealers have to record Aadhaar/PAN while
There is no requirement to take
selling goods to unregistered dealers?
Aadhaar / PAN details of the customer
under the GST Act.


47.
All expenses like freight / transport / packing which are
All expenses will have to be included in
charged in Sales Invoice are taxable in GST? How to
the value and invoice needs to be
charge in bill?
issued accordingly. Please refer to
Section 15 of CGST Act and Invoice
Rules.
48.
Can we move construction material to builders on
If the goods are meant to be supplied
delivery challan and issue tax invoice post completion of
in the course of construction an invoice
activity?
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
The supplier may issue credit note to
supply shortages in Transit. (ii) Customer gets less
the customers and adjust his liability.
quantity and pays less.
50.
Should we issue Self Invoice for GST liability discharge on
For RCM liabilities tax invoice has to be
RCM or GST can be discharge through expenses booking
issued on self.
voucher?
Returns
51.
What would be done on tax paid on advance receipt if
Advance refunded can be adjusted in
advance has to be refunded in any circumstance
return.
52.
Do registered dealers have to upload sale details of
Generally not. But required in case of
unregistered dealers also in GST?
inter-State supplies having invoice
value of more than Rs 2.50 Lakhs.
53.
How to incorporate two supplies in return for Pharma
Returns provide for furnishing rate
with same HSN code of four digits but having different tax
wise details.
rates?
Supply
54.
Should we discharge GST liability for all reverse charge
It has been decided that Rs. 5000/- per
having small amounts of Transaction or any amount limit
day exemption will be given in respect
is there?
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
Tax will be charged only on the total
consumers by FMCG companies?
consideration charged for such supply.
56.
How to comply with 9(4) of CGST Act if POS is in another
Any person making inter-state supply
State of the unregistered supplier
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
Stipend paid to interns will be
have to pay GST on RCM basis.so whether stipend paid to
employer-employee transactions.
intern will also come under RCM?
Hence, not liable for GST.
58.
Salary by partnership firm to Partners as per Income Tax
Salary will not be liable for GST.
Act liable to GST?
59.
Sec 9(4) of CGST Act 2017. Do I need to pay under RCM if I
It has been decided that Rs. 5000/- per
purchase stationary worth Rs.100 from an unregistered
day exemption will be given in respect
stationery shop?
of supplies received from unregistered
person.


60.
What is the treatment of promotional item given free to
Tax is payable on consideration
end consumers by FMCG companies? If taxable, whether
received for the supply.
ITC is allowed?
61.
Whether GST will be leviable in case of returnable packing
GST will be levied on the value charged
material like drums supplied with finished goods?
for the supply only.
62.
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.
63.
I am from MP and providing service to a customer in
Generally these will be two supplies
Maharashtra. I outsource the work to a service provider in
where the supplier from MP will charge
Maharashtra, what tax i need to 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
If the place of supply and the location
state of supplier (Rajasthan), then IGST will apply or
of the supplier are in the same State
CGST/SGST?
then it will be intra-State supply and
CGST / SGST will be applicable.
65.
Why is bifurcation of cash deposit as CGST-SGST-IGST
Three levies are under three different
required? Is cash held against a GSTIN, to be adjusted via
statutes and are required to be
return u/s 39
separately accounted for.
66.
What is the difference in between ‘Nil rated’, ‘taxable at
Exempt supply includes Nil rated
0%’ and exempted goods and services? Especially in
(taxable at 0%) and non-Taxable
relation with ITC
supplies and no ITC is available for such
supplies.
67.
Will professional tax will be abolished in Maharashtra
Professional tax is not a tax on supply
after introducing of GST?
of goods or services but on being in a
profession. Professional tax not
subsumed in GST.
68.
Employer provides bus service, meal coupon, telephone
Where the value of such supplies is in
at residence, gives vehicle for official and personal use,
the nature of gifts, no GST will apply till
uniform and shoes, any GST?
value of such gifts exceeds Rs. 50000/-
in a financial year.
69.
The definition of composite supply and the description of
Section 2(30) defines what will be
same under Section 8 differ. Please explain consequences.
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
It will have the same treatment as
which Section?
normal supply.
71.
Salary by Partnership firm to Partners as per Income Tax
Salary will not be leviable of GST.
Act liable to GST? Partners are not employees of the firm.
Transition
72.
How do I avail transition credit ?
Transition credit can be availed by
filing the respective forms under
Transition rules upto 30.09.2017.


73.
Please provide the clarity on area based exemption
Area based exemptions will not be
50/2003 in UK & HP.
continued under GST. It will be
operated through the route of
reimbursement as prescribed.
74.
We manufactured excisable goods. But unit availed the
The dealer will get deemed credit @
exception benefits 50/2003. What about my dealers
40% / 60% of the CGST paid on supply
stock?
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
Yes deemed credit will be available
as his turnover is below 1.5cr. Then in such case can
subject to satisfaction of other
trader take ITC on stock up to 40%?
conditions as prescribed.
76.
I am a trader. I have excise paid purchase invoice.
Full transition credit of such duty will
Whether I can claim credit of full excise duty on closing
be available on stock in hand in respect
stock of 1st July 2017
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 & has
Full transition credit of such duty will
documents showing excise, will he get full excise credit or
be available on stock in hand in respect
40% of CGST?
of which you have duty paying excise
document subject to conditions under
Section 140(3) of the CGST Act.
78.
If a fsd purchases directly from manufacturer and has
Full transition credit of such duty will
value cum excise duty and excise duty is not separately
be available on stock in hand in respect
shown will he get full credit?
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
Full transition credit of such duty will
purchases directly from manufacturers and excise is
be available on stock in hand in respect
separately shown in invoice?
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 & held
The supplier would be eligible to carry
stock of Rs. 50 lakhs. Then can we take credit of that stock
forward the closing balance of ITC from
or not?
VAT return for June 17.
81.
What will be the impact of closing stock which has been
The supplier would be eligible to carry
already paid vat on 1st July?
forward ITC on such stock from VAT
return for June 17.
82.
If in Vat return refund claimed in June 17 & no balance
Refund claimed under existing law will
credit in GST. Then what’s the position of submission of
be handled as per the provisions of the
Form C
existing law. Form C to be submitted in
terms of provision of Rule 1(1) of
Transition Rules.
83.
Some service was provided on 28.06.2017 but Invoice will
If Point of Tax arises after appointed
be raised on 05.07.2017. Whether we have to charge
date, then GST will be chargeable on
Service Tax or GST?
such supply.


84.
Would we be eligible for credit on Capital Goods in transit
No provision for such credit is there in
and received post GST?
GST law.
85.
What about VAT balance pending on transition date?
Balance VAT credit in the return will be
transferred to new provisional ID as
SGST Credit.
86.
What about deemed export against Form H?
Form H will not be there in GST.
87.
Who will bear tax difference on closing stocks as on 30th
Closing ITC in VAT return will be
June 2017? Whether the manufacturer/dealer or
allowed to be carry forward in GST.
government?
88.
How will we get input credit on stock in hand for spare
For all inputs with duty paying
parts billed from other state, excise, CST and entry tax
documents available respective CGST /
paid?
SGST credit will be available. But credit
of CST will not be available.
89.
A trader buys from manufacturer not registered in excise
Deemed Credit will be available on
as his turnover is below 1.5 crore. then in such case can
stock in hand provided the conditions
traders take ITC on stock up to 40%
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
No such provision in GST.
Capital Goods in transit and received post GST?
91.
Can ITC of Swach Bharat Cess or Krishi Kalyan Cess be
No
carried forward under GST?
92.
Will Clean Energy CESS on imported Coal @ Rs. 400 PMT
No. Clean Energy Cess is being
continue to be applicable in GST?
repealed. Coal, however, will be
subject to compensation cess @ Rs
400/- per tonne.
93.
Whether closing balance of edu cess and secondary
No it will not be carried forward in GST
higher education cess prior to 1st Mar 2015 can be
as it is not covered by definition of
carried forward in GST?
“eligible duties and taxes” under
Section 140 of the CGST Act.
94.
Can u clarify for 40℅ benefit on closing stock does 1 year
Deemed credit will be available for all
limit apply or not ?
stock procured within a 1 year period.
95.
Till what time is transition credit available? Where do I
The window to declare transition credit
need to declare my input stock?
forms is three months from the
appointed day. Please refer to
transition rules for more details.
UTGST
96.
Will there be GST in A&N Islands as previously there was
Yes. For supplies within A&N, CGST
no VAT
plus UTGST would be leviable.
Others
97.
Whether IGST would be levied twice on high seas sales?
IGST shall be levied only once on
First on high seas sales and second on custom clearance.
imports.
IGST paid on 1 available as ITC?
98.
Will Krishi Mandi Fee (imposed in U.P.) be waived off in
GST does not concern such fee so GST
GST?
does not affect it.
99.
Is E-Way Bill applicable from 1st July 2017
The present system for E-way Bill in
States to continue, till the E-Way Bill
procedures are finalized.


100.
Is there a sunset clause for Anti-Profiteering law?
Yes, the sunset clause for Anti-
profiteering Authority is of two years.
It should be noted that the tweets received or the replies quoted are only for educational and guidance purposes and do not hold any legal validity.

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