Clarification by CBEC thru its GST Help Handle on Twitter

Clarification by CBEC thru its GST Help Handle on Twitter against queries raised by some People:

►ITC is available only if engaged in taxable activities. Since goods are exempt, ITC cannot be availed nor can it be carried forward.

►One Invoice cannot contain both Exempted and Taxable Supplies. Have to issue Separate Invoices. Tax Invoice/Bill of Supply for Taxable Items and Bill of Supply for Exempted Items.

►Items on Cess is applicable. It would be additive and not multiplicative e.g. Pan Masala (chapter 21) falls in 28% Category. It also attracts 60% cess . The total Tax would be 88% (100*28%+100*60%) and not 104.8% (100*28%+128*60%).

►Refund/Rebate would not be processed automatically. For Refund / Rebate, One has to file application and after processing of that eligible amount would be directly credited to bank account.

►Services by employee to employer shall be treated neither as supply of goods nor of services. On Payment of Salary to Employees working in Branches, registered as distinct registered person from Head Office.

►No separate limit for excise duty exemption in GST. Anybody with aggregate turnover up to ₹20 lakh (10 lakh in Special Category States) is exempt. Exemptions like SSI under Excise shall not exist anymore under GST Regime.

►GST Paid on Advance Payment would not be available for Input Tax Credit.

►No Concept of Payment of GST on MRP Basis.