Daily Archives: August 1, 2017

Refund of taxes for exporters in GST

Question : What are the provisions for refund of taxes for exporters in GST Answer: Provisions relating to refund are contained in section 54 of the CGST Act, 2017 . It provides for refund of tax paid on zero-rated supplies of goods or services or on inputs or input services used in making such zero- rated… Read More »

Category: GST

How can IGST be paid ?

Question : How can IGST be paid ? Answer: The IGST can be paid by utilizing ITC to the extent available and balance by cash. The use of ITC for payment of IGST will be done in the following order: • ITC of IGST shall be used for payment of IGST first; • Once ITC… Read More »

Category: GST

How will exports be treated under GST ?

Question : How will exports be treated under GST ? Answer: All exports will be deemed as inter-State supplies. Exports of goods and services will be treated as zero rated supplies. The exporter has the option either to export under bond/Letter of Undertaking without payment of tax and claim refund of ITC or pay IGST… Read More »

Category: GST

How will imports be taxed under GST?

Question : How will imports be taxed under GST? Answer: All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import on goods and services.  … Read More »

Category: GST

GST on Handicraft Sector : FAQ

GST on Handicraft Sector Question 1 : How will imports be taxed under GST? Answer: All imports will be deemed as inter-State supplies for the purposes of levy of GST. IGST is leviable on imports in addition to other duties of customs. Full set-off will be available as ITC of the IGST paid on import… Read More »

GST on Mining Sector : FAQ

GST on Mining Sector Question 1: Can small mining leaseholders with a turnover less than Rs.75 lacs operate under composition scheme? Answer: As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed Rs.75 lakhs, would be eligible for paying GST under the composition scheme.… Read More »

GST Treatment of Discounts

Question : Whether discounts can be claimed as an abatement from the price for assessing GST? Answer: In terms of Section 15(3) of the CGST Act, 2017, the value of supply for charging GST shall not include any discount which is given before or at the time of the supply if such discount has been… Read More »

Category: GST

Separate sequence numbers can be maintained for GST Tax Invoices

Question : Whether separate sequence numbers can be maintained for invoices issued by the Registered Person in respect of supplies made under GST? Answer: In terms of Rule 46(b) of the CGST Rules, 2017 single or multiple series of invoices can be raised by the Registered Person for the supplies made under GST as long… Read More »

Category: GST

GST treatment of supplies made from erstwhile tax free zones

Question : What is the treatment of supplies made from erstwhile tax free zones? Answer: Since GST is a destination based consumption tax with seamless transfer of ITC credit, no exemptions are accorded to supplies made by erstwhile tax free zones. Accordingly, the goods cleared from erstwhile tax free zones would be subjected to GST… Read More »

Category: GST

GST Treatment of physician samples distributed free of cost

Question : What are the requirements for clearance of physician samples distributed free of cost? Answer: In case of clearance of physician samples distributed free of cost, the ITC availed on the said samples has to be reversed in view of the provisions under Section 17(5)(h) of the CGST Act, 2017.No tax is payable on… Read More »

Category: GST

Assessment Value of drugs and formulations under GST

Question : Whether formulations cleared have to be assessed to GST under transfer price mechanism or on the basis of MRP printed on them? Answer: The assessment of drugs and formulations under GST would be on the basis of transaction value at each level of supply with end to end ITC chain for neutralizing the GST… Read More »

Category: GST