Clarifications on GST by GOI thru Twitter (Part-10)

Clarifications on GST by GOI thru Twitter (Part-10):

►Rs. 5000 Daily Exemption limit is only for CGST. SGST only if state has also issued same notification to exempt SGST
►Rs. 5000 Exemption Limit is only for Purchase from unregistered dealers, Supplies where reverse charge is applicable are not exempted e.g. GTA or Advocate's Bill.
► There is no provision for carry forward of ITC on Capital Goods in transition. 
►Transitional Credit will be available as per last return. Payment has to be made before due date.
►In Delhi CGST and SGST would be charged. UTGST is charged in UTs without legislature.
►If Selling 10 Items@Rs. 10 each with One Free. Taxable Value would be Rs. 100/- and not Rs. 110/-.
►For commission agents Turnovers  means taxable turnover (i.e. their commission) and not the value of goods they sell.
►If you have no inter-State supplies and your turnover is less than 20 lacs you may cancel your provisional I'd within one month.
►Advance Ruling Authority would be constituted by each State.
►Purchase from dealer registered under composition scheme will not attract GST liability under RCM.
►Invoice no to start from 1. Separate Books can be maintained for B2B (TI), B2C (BoS), RCM (Self Invoices), Inter State etc.
►GST is payable on Transaction Value. e.g. Mobile of 10K, Paid by Credit Card. Dealer charged Rs. 10,200/- (200/- Extra). GST would be payable on Rs. 10,200/-.
►Thanks. JMJ.

Clarifications on GST by GOI thru Twitter (Part-9):

►There is no GST on unregistered to unregistered transactions.
►If there is no supply then nil returns to be filed.
►If goods sold from state A to state B are returned to supplier's branch in state C. Credit note u/s 34 can not be issued from state C, This will be treated as separate supply. Credit notes has to be linked to the original invoice. 
►Transfer of ITC from one State to another State is available only through ISD route (if applicable).
►I sell goods shop to shop on DM send invoice to shopkeeper later, sometimes goods are remained unsold.How to issue invoice for E-Way Bill ?
Ans : E-Way bill rules will provide for line sales. They will be released shortly.
►GST refund is available subject to non-availment of drawback on the same amount.
►License fee will be covered under GST.
►There is no format for GST invoice, but all the relevant particulars to mentioned are in Rule 1 of invoice rules. 
►Export does not attract tax. It will be zero rated. But Exporter has to get registration and follow all related compliance.
►Composite scheme is available to certain supplier of services only. Pls refer to section 10 of the CGST Act.

Clarifications on GST by GOI thru Twitter (Part-8):

►In Table 8 of GSTR-1, you have to also furnish detail of Nil rated, exempted and non GST outward supplies including OTC derivatives, G-secs, commercial papers, Certificate of deposits, discount earned by banks on LC/Bill of Exchange/Invoice etc.

►Discounting of LC or bill of exchange or invoices - Exempted only so far as the consideration is represented by way of interest or discount.

►A Principle can send goods to unregistered job work without payment of GST subject to conditions given under section 143.

►Gift by Employer to Employee will not be taxable under GST, if included in Salary for the purpose of Tax Computation for TDS (Income Tax) Purpose.

►Process of allotment of Unique ID Numbers (UIN) to embassies of foreign countries/ UN/ Specified international organisations will start shortly.

►If LoS (Location of Supplier) and PoS (Place of Supply) is same, it is intra-state supply liable to CGST+SGST.

Clarifications on GST by GOI thru Twitter: (Part-7):

►If company doesn't have office in other state but resident service employee (staying in own home) who provides service there- is registration  required? Based on the circumstances of the case, if the supply is not made from that state then registration is not required.

►If You are availing services from an unregistered dealer of another state, you need not to get registration in the state of Service Provider, from your own state you can discharge the liability of GST under RCM.

►If Vendor charges Interest/Payment on delayed payment, GST would be applicable on such payment and same would be eligible for Input Tax Credit.

►Chrome version should be 49+ for Use of Digital Signature at GST Portal.

►If there is an error/mistake in enrolment form, can be rectified under Edit Option, but only if Saved, not submitted. If submitted can be done only at back end by GST Technical Team.

►As of Now, There is no option to change Mobile Number or mail id used for enrolment. Use only permanent number and official or permanent mail id. Also try to use Mobile/Mail Id linked to Aadhar.

►2 separate registrations can be done for 2 different businesses if your tax department has provided the relevant provisional IDs.

Clarifications on GST by GOI thru Twitter: (Part-6):

►If Registered Person purchase goods/services from Unregistered Person, Will have to issue an invoice, Pay Tax under RCM, Display same in Tax Return and Avail Input Tax Credit. (In Both Cases – Domestic/International-Import).

►If Goods were Imported under centralized registration and goods are now lying at different branches (Required separate registrations under GST), CVD & SAD can be carried forwarded to branches.

►Registered dealers need not to record PAN/Aadhar of unregistered buyer.

►If advance received by HO in Haryana and Goods Supplied by Branch at Chhattisgarh, Invoice will be issued at each stage.

►In case of centralized billing, state wise sequential serial number for Invoices need to be maintained.

►On all inter-state supplies, IGST is to be charged. If wrongfully paid CGST/SGST instead of IGST, he would have to pay IGST and shall get refund of CGST/SGST. No interest liability.

►Tax invoice requires signature or digital signature of the supplier or his authorized representative.

Clarifications on GST by GOI thru Twitter: (Part-5):

►You can directly call GST Help Line No. 0124-4688999 or mail at  helpdesk@gst.gov.in for some specific queries.

►If you have migrated to GST but turnover is less than threshold limit, you can get your registration cancelled.

►Voucher would either be goods or services depending on for which item it can be redeemed for.

►Simplified export procedure under GST and final Transition Rules would be placed in public domain soon.

►If Advance taken in June’17 and activity also finished in June’17, current Laws will be applicable, but if activity takes place in July’17 or Later, GST would be applicable.

►If supplier is located in India and place of supply is outside India, then it is an inter-state supply u/s 7(5)(a) of IGST Act.

►Job worker has to get registration in case turnover exceeds threshold limit, even if supplier is registered.

►If any asset is moved/transferred to Branch (Distinct/Related Person) in another state, it will amount to stock transfer and IGST would be applicable.

►Existing VAT and Excise Credits can be carried forwarded to GST.

Clarifications on GST by GOI thru Twitter: (Part-4):

►If the discount is established beforehand through agreement, specifically linked to relevant invoices & corresponding ITC reversed then GST is levied excluding such discount value.

►Closing balance of edu cess and secondary higher education cess prior to 1st Mar 2015 cannot be carried forward in GST.

►Inter-state suppliers liable for registration irrespective of turnover. Nil rated supplies are taxable supplies. Only if exclusively making non-taxable supplies, not liable for registration.

►E-Commerce Operator can sell his own goods on the same portal with single registration.

►GST would be deposited as SGST and CGST under one payment challan.

Input Service Distributor is just an option to distribute Input Credit and not Mandatory.

►Exporters will get refund of GST paid for goods to produce the material.

►One Registration for all SEZ Units together in same SEZ Zone. No Separate Registrations required.

►You can file GST Return through 3 ways : Using GST Common Portal/Using offline Utility and uploading the JSON on GST Common Portal/ Through GSP.

►The name used in enrollment data needs to be same as on PAN.

► For GSTIN User ID will remain same irrespective of Number of Business Places.

Clarifications on GST by GOI thru Twitter: (Part-3)

►Services rendered by Advocates, Recipient has to pay tax under Reverse Charge, But if an Advocate avail any taxable service from unregistered person, Advocate shall pay Tax on the same.

►Remuneration to partners over & above share of profits not in nature of employer-employee relationship. Hence liable to tax under GST.

►ITC of input tax will be available for payment of cess under GST.

►Mandi samiti tax will continue as not subsumed in GST.

►If Registered at Delhi and Rent your property at Mumbai for commercial use, also have to get registration at Mumbai .

►If one has manufacturing unit and Sales office in same state, a common registration would suffice.

►IGST credit of Maharashtra cannot be utilized against the liability of Gujarat. ITC pool cannot be cross utilized amongst distinct persons.

►Only direct export of goods/services and SEZ supplies are zero rated u/s 16(1) for which claim of refund is allowed u/s 16(3) of IGST Act to the exporter.

►States can’t defy recommendations of GST Council & can’t issue their independent Notification. Every notification has to be mandatorily recommended by GSTC.

Clarifications on GST by GOI thru Twitter: (Part-2)

►E-Commerce companies  are required to register only where they are located and not in each of Seller’s State, but Seller need to take Registration in his state.

►Input Credit of Swachh Bharat Cess & Krishi Kalyan Cess can not be carried forwarded to GST.

►Routine Filing of GST Return & other Documents can be done by Tax Payer Himself.

►GST does not differentiate between Fresh/New Goods or Used/Second-Hand Goods.

►New Registration (Other than Migrated Cases) will start before 1st July’2017.

►Rules related to E-Way Bill is being reviewed and can be revised if required.

►There is no change in format of GSTIN and therefore provisional and final GSTIN would be same.

►Separate registration as supplier and tax deductor is required. (Also holding TAN under Income Tax is mandatory for tax deductor under GST)

►If already registered in a State, another registration have to be taken for SEZ unit in the same State.

►In GST regime, there is no provision for area based exemptions and thus CGST would be payable which can be recovered from customers.

Clarifications on GST by GOI thru Twitter: (Part-1)

►ITC is available only if engaged in taxable activities. If goods (Supplies) 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.

►No Concept of Payment of GST on MRP Basis.

  

Sukhvinder (@sukhcma) (@gstsukh)