112 GST FAQ by CBEC on 26.11.2017

By | December 3, 2017
(Last Updated On: December 3, 2017)

GST FAQ by CBEC on 26.11.2017

Question 1: I was migrated as an assessee from the service tax law but under GST I have no liability since my business turnover is less than Rs. 20 lakhs. Am I still liable to file returns?
Answer: yes, every registered person is liable to file returns. You can cancel your migrated registration by filing Form GST REG-29.

Question 2: Please clarify process for applying of refunds?
Answer: For exports with payment of IGST, the shipping bill is considered to be the application for refund and refund will be disbursed directly by Custom authorities. For refund of accumulated credit. Please refer Circular No. 17/17/2017 dated 15.11.2017.

Question 3: My turnover is less than Rs. 20 lacs for both exempt, taxable, inter state and intra-State services. Do I need to register?
Answer: No, you do not need to register, since your turnover is less than Rs. 20 lacs.

Question 4: Will my PLA balance gets transitioned through my TRAN-1 Form?
Answer: No, PLA balance will not be transitioned through the TRAN-1 Form.

Question 5: Is there any requirement for a signed invoice from a registered supplier for every supply?
Answer: yes, It is required in terms of Rule 46(q).

Question 6: Is there any extension of GSTR-3B return for the month of October?
Answer: No, it has to be filed by 20th November, 2017. Late fee will be applicable otherwise.

Question 7: What is penalty for late filing of GSTR-3B return?
Answer: There is no late fee for late filing of GSTR-3B for July, August and Sep 2017. From Oct onwards, the late fee for GSTR-3B will be Rs. 50 per day (Rs. 20 per day for NIL Filers)

Question 8: How to claim refund of amount deposited in wrong head?
Answer: A Circular for manual filing of such refund applications is under process.

Question 9: is it necessary to file return through CA, GST Practitioner?
Answer: No, taxpayer can file their return himself on the common portal www.gst.gov.in

Question 10: Is there a simple procedure for filing NIL returns?
Answer: Currently there is no such facility. It is envisioned that a simple facility for NIL filers shall be introduced in the system in the future.

Question 11: Do I need to take registration if my turnover is Rs. 10 lakhs. What to do about migration from service tax?
Answer: No. registration is not required for service providers if aggregate turnover is less than Rs. 20 lakhs. If migrated  from service tax, then please use Form REG-29 to cancel your registration.

Question 12: if my turnover goes from below Rs. 20 lakhs to above Rs. 20 lakhs in FY 2017-18, when am I required to take registration?
Answer: You must apply for registration as soon as turnover crosses Rs. 20 lakhs. You will be liable to pay tax on all taxable supplies made from the effective date of registration.

Question 13: During transition, can I take CGST credit of VAT paid earlier?
Answer: No CGST credit can not be taken of VAT paid earlier. Only SGST credit is available for the same.

Question 14: During transition, can I take SGST credit of Central excise/Service Tax paid earlier?
Answer: No, SGST credit can not be taken of Central Excise/Service Tax paid earlier. Only CGST credit is available for the same.

Question 15: Do I need to declare all items of trade/manufacture/provision of service while registration?
Answer: No. Only the top five items need to be declared while registration.

Question 16: Is registration compulsory on inter state movement of goods?
Answer: Yes, the facility of exemption ·from registration on inter sta·te supply is available only for service provider and certain goods like handicrafts. All other suppliers of goods need to be compulsory register if they are making inter-state supplies

Question 17: I have set up a stall at Trade Fair. I have not brought any goods for sale.  I am just booking orders on advance the delivery of which will happen directly from my place of business to the customers. Is there any GST liability/registration required at the time of booking orders at Trade Fair?
Answer: No GST liability arises at the time of booking orders/receiving advances. Liability to pay GST will arise at the time of issuing invoice for delivery of goods from place of business.

Question 18: I have used 100 units of inputs in manufacturing process during which 20 units of inputs go to waste. Do I need to reverse credit on the 20 units of wasted input?
Answer: No, there is no need for reversal of inputs which are used in the manufacturing process and end up getting wasted/destroyed.

Question 19: Is there any liability to pay GST on advance received by a works contractor?
Answer: Yes, works contractor have been defined as services in GST Act. Therefore, GST is payable at the time of receipt of advance.

Question 20: I am located in New Delhi. I procure goods on behalf of my custome located at Bombay from a supplier in Kanpur who raises bills in my name but delivers goods directly to Bombay. What will be GST Treatment?
Answer: IGST will be payable by the supplier in the Kanpur on invoice raised to you in Delhi. You will take ITC of the IGST so paid and take credit. You will issue invoice to buyer in Bombay and charge IGST.

Question 21: Can I take Input Tax Credit of tax paid on reverse charge?
Answer: Yes

Question 22: Can tax liability arising out of reverse charge be discharged from available ITC?
Answer: No tax liability arising out of reverse charge can only be paid from the cash ledger.

Question 23: CMP-03 form is compulsory for migrated dealer or for new dealer who opt composition scheme or for both?
Answer: Yes, CMP-03 Form has to be filed by everyone whom files an intimation under sub-rule (1) of Rule 3.

Question 24: When the facility for filing GSTR-1 for Aug-2017 to Oct-2017 will be available on GST portal? Due date is 31st Dec. as per recent notification for below /above 1.5 crore kindly guide?
Answer: The facility to file quarterly GSTR-1for taxpayers will turnover less than Rs. 1.5 Crore will be available soon.

Question 25: Is IGST payable under RCM on consultancy fee paid to a lawyer located outside India for services rendered abroad?
Answer: In case, the service provider is outside India and the recipient of such service is in India, then RCM will be applicable.  

Question 26: Are we supposed to file GSTR-2 for July?
Answer: Details about filing of GSTR-2 will be notified on a future date.

Question 27: How to receive refund from previous regime of CBEC at Cenvat Credit of my pre-deposit?
Answer: Refund under existing laws, will be provided under provisions of the existing Acts only. You may contact your jurisdictional authorities for this.

Question 28: Our company gave late payment to supplier who has raised a debit note to us for interest along with GST @ 18% against delayed payment. Is IGST applicable on such payment?
Answer: Yes. GST is leviable on interest or late fee or penalty for delayed payment of any consideration. Please see section 15 of CGST Act, 2017

Question 29: If we have to sell vehicle to employee and the amount of vehicle had already recovered from their salary as EMI then what will be invoice value for GST?
Answer: Since this transaction is not in furtherance of business then such transaction would not be considered as supply.

Question 30: if GST paid under wrong head can not be refunded at the moment at least they should allow to swap with other head?
Answer: Such cases may be handled through amendment of GSTR-3B return and subsequently claim cash ledger refund.

Question 31 : If Services rendered and Bill is raised before 01/07/2017 but Payment received Now with service Tax ( following receipt basis) . Whether to pay Service Tax or GST Please guide .

If Service Tax has been charged on a supply , then GST will not be leviable under Section 142(11)(b) of the CGST Act 2017

Question 32 : Sir, if someone is not providing proper bill and charging GST on blank / rough  paper , as consumer what can we do ?

You can approach the Jusrisdition authority to give a complaint

Question 33: GSTR-3B amendment in only after submitted return but not after filing return?
Answer: No GSTR-3B can not be amended after filing of return

Question 34: How can I know my GST jurisdictional officer to submit my refund application as per Notification No. 17/17/2017 dated 15.11.2017?
Answer: Please refer to 02/2017 Central Tax dated 19/06/2017

Question 35: late fees for GSTR-3B for first three months had been waived and and fees already paid was going to be reflected in cash balance, but no such cash balance under any head is being reflected?
Answer: This will be available shortly

Question 36: if our tour operator only book hotel for his customers how GST is to be charged? Can he opt for 5% rate of tour operate?
Answer: if the tour operator acts as a pure agent then he may charge 5% on his own commission whereas the hotel will charge the applicable rate on its own services.

Question 37: GST paid wrongly in interest head instead of correct tax head. No option is available in GST Act to off set tax liability except paid further to get credit in cash ledger. What to do?
Answer: In such cases refund of cash ledger may be sought.

Question 38: Is FTWZ under GST?
Answer: Yes, FTWZ is under GST and all taxes leviable in SEZ under GST are also applicable on FTWZ.

Question 39: I am located in Delhi. My recipient is in Gujarat but asks me to get goods delivered in Delhi. Should I charge IGST/CGST/SGST?
Answer: You need to charge CGST/SGST as per provisions of section 10(a) of the IGST Act, 2017

Question 40 :Will I get credit if I distribute a part of my output as free supplies?
Answer: Free supplies are not supplies as per GST law and hence no ITC is required. You need to reverse credit for the same.

Question 41: Can Banks issue a consolidated invoice?
Answer: Banks/Financial Institutions have the option of issuing a consolidated invoice for supplies made during the month at the end of the month.Alternatively, banks have to issue their invoices within 45 days of the provisions of supplies.

Question 42: What will be the treatment of supplies received by individuals but later reimbursed by the employer?
Answer: Such supplies would be treated as consumed by the supplier. The transaction would be treated as a supply to consumer and no  credit will be available to the employer on these transactions.

Question 43: Some States are asking for e-way bills. Has the e-way bills been notified?
Answer: The e-way bill rules have been notified but will be implemented in a staggered manner from 2018. However, in the intervening period, States are free to continue with their existing e-way bill structure.

Question 44 : If the EOU is in the same state , will the supplier to EOU levy CGST, SGST or IGST ?

Supply to EOU are treated as deemed exports but levy would depend upon the nature of transactions.

Question 45: Will refund of IGST on exports be allowed for deemed exports?
Answer: Notification No. 49-CGST may be referred. Refund will be available to the supplier

Question 46: I am supplying services to Nepal/Bhutan and receiving consideration in INR. Will I have to pay IGST on such supplies?
Answer: Supply of services to Nepal/Bhutan for which consideration is received in INR have been notified as exempt. Therefore No tax is required to be paid.

Question 47: Will I have to reverse ITC on supply of services to Nepal/Bhutan on which consideration is received in INR?
Answer: No. Supply of services to Nepal/Bhutan for which consideration is received in INR are exempt supplies but need not be added to the turnover of exempt supplies for the purpose of calculation of amount of ITC to be reversed.

Question 48: I am a real estate developer registered in Delhi. I have received a contract for developing a project in Haryana. Do I need to register in Haryana?
Answer: No. As per section 7(3) of the IGST Act, such supplies are IGST supplies.You need not take any registration in Haryana but you need to charge IGST on your works contract services.

Question 49: I am a real estate developer registered in Delhi. I have a sales office in Mumbai, Chennai and Kolkata. Do I need to take registration in Maharashtra, Tamil Nadu and West Bengal?
Answer: yes as the sales office will be treated as distinct entity providing service to the registered office in Delhi

Question 50 : My supplier has also provided transportation of my goods. How much tax do I need to pay on the transportation charges?
Answer: Depends upon terms of contract. Normally, it will be part of supply of goods and will be subject to same tax rate as goods.

Question No. 51: I am restaurant owner and also have supply of some other services worth Rs. 1 lakh. Am I eligible for Composition scheme ?

Answer: No. Please refer to Section 10 of CGST Act.

Question No. 52: Challan for Job work in form ITC-04 needs to be filed by 25th of next quarter. Is there any provision of relaxation in it?

Answer: Yes. Please refer to the Notification No. 51/2017-Central Tax

Question No. 53: What is taxable value in case of export under LUT or bond as shipping bill show taxable value not applicable in filing GSTR 1. Which value whether FOB value or CFR /CIF or invoice value consider as taxable value?

Answer: Valuation needs to be done on basis of Section 15 of CGST Act & Chapter IV of CGST Rules. The same would be mentioned on tax invoice raised in accordance with rule 46 of CGST Rules.

Question No. 54: Hi, I have a software solutions firm & I also supply service to few clients situated out side of India & they pay me via services like @paypal @trasferwise. Do I have to apply GST on the invoices & if yes, how many? Is there any bond I have to supply? PLEASE HELP!!]

Answer: Export of services can be done, with or without payment of IGST, as per section 16 of the IGST Act.

Question No. 55: Are the government agencies and government bodies exempted from GST?? Is there a notification to this effect?

Answer: No.

Question No. 56: From which date, I will make export transaction with pay 0.1% IGST. This facility for all exporter?

Answer: Kindly refer to Notification No. 41/2017—integrated Tax (Rate)

Question No. 57: We are a private ltd co registered in India. Our Parent company is in Europe. We supply ITES [ Information Technology Enabled Service ] services to our parent co in Europe. Query: Whether the services provided by us to our parent co will be treated as Export Services as per GST Act..? Please clarify?

Answer: No as they will be treated as distinct entity

Question No. 58: I am a transporter and does not need to get registered in GST. But, I do business with registered persons. Do I have to maintain any details?

Answer: Yes. Please refer to Chapter VII – Accounts & Records of CGST Act.

Question No. 59: I need advance ruling on my business (supply)? Online process is not working. Need guidance.

Answer: Manual application can be given. Please refer to Notification no. 55/2017-Central Tax. A new rule 107A has been added for the same. 

Question No. 60 :  Several amendments  have been made to CGST Rules .It is confusing to comprehend all notifications .please guide.

Comprehensive document of rules available at  http://www.cbec.gov.in/htdocs-cbec/gst/cgst-rules-15112017.pdf

Question No. 61 : I am representative of OIDAR. Do I have separate provision for invoicing ?

No. Invoicing needs to be done as per rule 46 of CGST rules .

Question No. 62 : What is the period of OIDAR return filing ?

Monthly . Return in form GSTR 5A needs to be filed on or before the 20th day of the month succeeding the calendar month or part thereof.

Question No. 63 :  We are planning to implement e invoicing only is it possible ?

yes all the mandatory details as per Chapter VI of CGST rules should be present on such invoices .

Question No. 64: I am a Kirana shopkeeper ,Is it mandatory to have signature on invoices ?

Yes

Question No. 65: I am in jewellery business opted composition from 01/07/17 do i need to pay on stock from URD ?as URD purchase for jewellers was not taxable under RCM.

Answer: Pl see press release dated 13/07/17 available at http://www.cbec.gov.in/resources//htdocs-cbec/press-release/Press-Release-Reverse-Charge.pdf 

Question No. 66: wrongly deposit the late fee amount Rs.6800/_ for sept month in to penalty column. How to get it back. Pl. Advice

Answer: U may claim refund. Circular on manual filing of refund application is being issued shortly.

Question No. 67: how can we claim refund of IGST pmt for service exported with the pmt of IGST?

Answer: Pl. see circular no 17/17/2017 dated 15/11/2017.

Question No. 68: where to show Debit notes in GSTR3B

Answer: It is to be shown in Table 3.1 of GSTR-3B.

Question No. 69: sir I have wrongly filed GSTR-3B for the month of October now what can I do now?

Answer: Detailed circular is being issued shortly.

Question No. 70: Dear Sir is it possible to claim Refund of IGST payment with manual filing

Answer: Refund of IGST paid on export of goods cannot be claimed manually. Shipping bill itself is treated as refund application.

Question No. 71: how we can edit invoice number wrongly submit in gstr1, which shown in table 6A of gstr1 while claiming refund on export

Answer: It can be shown in Table 9A of GSTR-1 of next month.

Question No. 72: plz tell me whether gst is applicable for sale of license by an Indian exporter to a Malaysian company (audio &video) content payment received in foreign currency. they will use those contents on YouTube GB etc

Answer: Facts not clear but this appears to be export of services.

Question No. 73: made payment by mistake is there any chance for getting refund, if yes please suggest thank you

Answer: Circular for claiming refund of balance in cash ledger is being issued shortly.

Question No. 74: dear sir one of client had paid wrongly in cess amount what can we do to reverse or can adjust any other tax

Answer: Refund can be claimed. Circular for manual filing of refund application is being issued shortly.

Question No. 75: I missed October filing deadline. From what i can calculate the fine is already more than 2k. How do I file? My return’d be nil

Answer: Late fee for NIL return has already been reduced to Rs. 20/- per day. Pl. see Not No. 64/2017- Central tax dated 15/11/17.

Question No. 76: Pls advise on the following : I was a compound dealer in VAT thereafter i migrated to GST & opt composition within time, my question is do i have to pay tax to fill CMP-03.

Answer: Tax is required to be paid. Pl. see Rule 5(1)(c) of CGST Rules.

Question No. 77: Company purchased commercial vehicle for his own transportation, is ITC available for same?

Answer: It would be available. Pl. see section 17(5)(a)(ii) of CGST Act.

Question No. 78: Monthly or Quarterly for dealer under 1.5 cr…do we need file GSTR3B or pay only challan

Answer: GSTR-3B is to be filed by all taxpayers. Pl. see Not. No. 35/2017 central tax dtd 15/09/17 & Central Tax 56/17 dtd 15/11/17

Question No. 79: (Composition Dealers) Stock declared 30th june in CMP-3 will it liable for any tax on closing stock inspite of exhausted ITC or no c/f ITC.

Answer: Tax is payable. Pl. see Rule 5(1)(c) of CGST Rules.

Question No. 80:  I have submitted Bank guarantee and bond for export purpose. Now as per notification no. 37/2017- Central Tax, I am eligible to export under LUT. When can I take back BG & bond and instead submit LUT?

Answer: You can do it now. It came into force from 04.10.2017

Question No. 81: Do charitable trust having donation receipt above Rs. 20 Lacs and scrap sale of Rs. 1,000 required to obtain Registration?

Answer: No.

Question No. 82: I want the notification that explains the latest changes (10th November) made in branded and non branded food products.

Answer: Please refer to Notification nos. 41/2017-Central Tax (Rate) and 42/2017-Central Tax (Rate).

Question No. 83: Registered job worker is in another state. Can he supply finished goods after job work under a delivery challan on inter state basis ?

Answer: Yes, please refer to rule 55 of CGST Rules.

Question No. 84: Whether CGST & SGST or IGST is to be paid on freight on RCM basis if goods are received from other states?

Answer: IGST.

Question No. 85: Any notification for due date of payment under GST?

Answer: Notification No. 35/2017-Central Tax and 56/2017-Central Tax.

Question No. 86: Where do we have to show high seas sales data in GSTR-1 ?

Answer: For details related to high sea sales, please refer circular no. 33/2017-Customs.

Question No. 87: What is to be done for import duty paid in June and good sold in July. How to show ITC of import duty in FORM GSTR-3B?

Answer: ITC can be taken by furnishing the detail of eligible duties paid in FORM TRAN-1.

Question No. 88: While paying GST, should RCM challan be separate?

Answer: No. Single challan will do.

 Question No. 89: I export vegetables. Where do I file in FORM GSTR-3B – Zero rate goods or Nil rated goods?
Answer: Zero rated goods.

Question No. 100: What is the date of applicability of e-Way Bill System. Some are saying that it has been made applicable from 12/09/2017.

Answer: Central government has not notified the enforcement of e-Way bill rules. Till that time State e-Way bill, if
any, would be applicable.

Question No. 101: Want to opt for composition scheme. When will be the option to opt for the scheme enabled again?

Answer: It has been enabled. Please refer to the Notification no. 45/2017-Central Tax.

Question No. 102: Whether ‘Subsidiary Canteen Stores’ run by Maha Police/SRPF are exempted under GST?

Answer: No

Question No. 103: Is there an option to surrender registration for those who wish to cancel their registration as per Notification no. 05/2017 — Central Tax ?

Answer: Yes, please refer rule 22 of CGST Rules. You have to apply through FORM REG-16 or REG-29.

Question No. 104: What will be place of supply in case selling goods on his over the counter shop to unregistered parties who belong to other states?

Answer: Place of supply would be location of supplier.

Question No. 105: Service dealer opted for composition scheme. Later he came to know that the scheme is not applicable for services. What remedy he has now?

Answer: Please refer rule 6(3) of CGST Rules. You can opt out and need to follow all other provisions of the Act.

Question No. 106: If I have taken composition for restaurant. Am I liable to pay 5% on items sold on MRP such as drinks, chocolates or 1%?

Answer: 5% needs to be paid on turnover in your State / UT.

Question No. 107: I pay Rs. 60,000 as shop rent to unregistered dealer. Is reverse charge applicable on that?

Answer: No. Please refer to notification no. 38/2017-Central Tax (Rate)

Question No. 108: I am second hand good dealer. Do I need to pay GST on the value at which I sold that second hand good?

Answer: No. Please refer to rule 32(5) of CGST Rules.

Question No. 109: Is there any definition of related person in GST?

Answer: Yes. Please refer to explanation under Section 15(5) of CGST Act.

Question No. 110: Do individual freelancer working for US clients require GST registration?

Answer: Yes, if your aggregate turnover is more than Rs. 20 lakhs. Please refer to Notification no. 10/2017 — Integrated Tax.

Question No. 111: I have paid 5% GST on reverse charge basis for receipt of GTA service. Can I claim credit for GST paid?
Answer: Yes, its credit can be claimed.

Question No. 112: Date of applicability of TDS provision under GST regime?
Answer: Not yet decided.

 

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