Daily Archives: August 2, 2017

Exporter can claim higher duty drawback on self declaration basis : CBEC Circular No 32/2017 Customs Dated 27th July 2017

Circular No 32/2017 Customs Dated 27th July 2017 Related Topic on GST Topic Click Link GST Acts  Central GST Act and States GST Acts GST Rules GST Rules  GST Forms GST Forms GST Rates GST Rates GST Notifications GST Act Notifications GST Circulars GST Circulars  GST Judgments GST Judgments GST Press Release GST Press Release… Read More »

No refund of GST ITC on Iron Ore export

  Question : As per Section 54 (3), it is clear that no refund of ITC will be available for export in the cases where product is subject to export duty. Iron Ore export is subjected to export duty. In the earlier regime, the exporters were allowed to take refund of service tax paid on exports. Will… Read More »

Category: GST

GST ITC on steel, timber and cement used in underground mines

Question : Will ITC be available on steel, timber and sometimes cement which are used in the underground mines to provide a protective device for security purpose? Answer: Credit will not be available if these goods are supplied for construction of an immovable property. But if these are temporarily placed for protective purposes, credit will… Read More »

Category: GST

HSN Classification of calcareous building stone for GST

 Question . According to HSN Code 2516 calcareous building stone comes under 5% tax rate, but simultaneously under HSN Code 6802 it comes under 28% tax rate. Clarity on the same may be provided by the Government Answer: Chapter 68 covers value added articles of sandstone etc. which are further worked other than by way of roughly… Read More »

Category: GST

GST ITC not available on Railway siding used in mining industry

Question . Whether Railway siding in mining industry exclusively utilized for effecting dispatch of taxable goods vz.coal (i.e. directly used in the course or furtherance of business) will be treated as Plant and Machinery and ITC under GST will be allowed or treated as civil structure and ITC will be denied? Answer: ITC will not… Read More »

Category: GST

GST Tax Rate on supply of different grade of coal under FSA Sale

Question . In case of coal, the applicable Compensation Cess is a Fixed Amount of Rs.400/- per MT. Under above situation, how such apportionment is possible since in case of FSA Sale, supply of different grade of coal as per availability of stock against single bulk receipt of “Advance” is to be adjusted? Answer: If… Read More »

Category: GST

Supplies of coal covered under continuous supply of goods under GST ?

  Question :  Can supplies of coal under a particular order or under FSA (Fuel Supply Agreement) be eligible under the definition of ‘continuous supply of goods? Answer: Such supplies are in the nature of continuous supply as the invoices are raised periodically. The individual dispatches may be covered under delivery challans and invoice may be… Read More »

Category: GST

E-way bill requirement for companies operating in Mining Sector ?

Question . What is the requirement for E-way bill for companies operating in the Mining sector? Answer: As per rule 138 of the CGST Rules, 2017, till such time as final rules are issued, the Government may, by notification, specify the documents that the person in charge of a conveyance shall carry while the goods… Read More »

Category: GST

GST TDS applicable on Works Contract Jobs in case of PSUs

Question . Whether GST TDS will be applicable on Works Contract Jobs (to be renamed as Supply of Services) in case of PSUs, since such GST TDS U/s 51 (1) of CGST Act. 2017  is applicable on: a) Dept. or establishment of the Central Govt. or State Govt.; or b) Local authority; or c) Govt.… Read More »

Category: GST

How to File GST returns for mining Companies located in backward areas

Question . How can we take support during filing of returns, as huge mines are located throughout the districts in the country, especially in rural and backward areas, and the problem will be aggravated as the huge number of mines are operating without any IT infrastructure? Answer: Returns may be filed from the central office of the… Read More »

Category: GST

What is procedure for return of goods under GST ?

Question :  What is the procedure for return of goods under GST? Answer: In terms of Section 34(1) of the CGST Act, 2017 in case of return of goods on which GST was paid at the time of supply, the supplier of such goods may issue a credit note for the full value, including the… Read More »

Category: GST

GST ITC on rig operations by Exploration companies

Question . Exploration companies undertake exploration activities for preparing mining blocks for auction in different States in the country. They use rigs for exploration. CENVAT credit was available on rig operations under the existing law. Will the company be eligible to take ITC under GST? Answer: Rigs, capitalized in the books of accounts as capital goods are… Read More »

Category: GST

GST ITC on Transport of minerals from mine to buyer

Question :  Can GST charged as per transport bilti on movement of mineral from mine to the buyer be allowed as ITC to the buyer irrespective of the ownership of the transporting vehicle? Answer: In case of an FOR contract for supply of mineral from the mine to the buyer, it is a composite supply… Read More »

Category: GST

GST on Free issue of coal to Employees on basis of wage agreement

Question . Whether free issue of coal to employees paid in course of employment and on the basis of wage agreement with value below Rs.50, 000/- per employee will attract GST? Answer: Gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply… Read More »

Category: GST

GST ITC credit on Consultancy provided by Professionals to mining companies

Question :  Will GST charged by tax consultants, advocates, Chartered Accountants, environmental consultants, canteen service providers and other service providers to mining companies be allowed as input credit? Answer: ITC on any input service/ inputs used in the course or furtherance of business would be available subject to restrictions and other conditions as per the provisions… Read More »

Category: GST

When will Govt refund unutilised GST input credit ?

Question . Would the net outstanding amount of unutilised input credit be refunded by the Government? Answer: In terms of the provision of Section 54(3) of the CGST Act, 2017 subject to conditions, refund of unutilized input tax credit would be available in respect of zero rated supply or where ITC has accumulated on account… Read More »

Category: GST

What is time limit for availing input credit under GST ?

Question : What is the time limit for availing input credit under GST? Answer: As per provisions of Section 16(4) of the CGST Act, 2017 the ITC is not available after the due date of furnishing the return for the month of September of the next year or furnishing of the annual return, whichever is… Read More »

Category: GST

GST payable on royalty for Mining Lease granted by State Govt

Question : Whether GST is payable on royalty (to be paid to Government) for Mining Lease granted by State Govt. Answer: Yes, on royalty GST will apply under reverse charge mechanism. Further, such payment of GST under reverse charge mechanism would be eligible as ITC in the hands of the recipient of supply for payment of… Read More »

Category: GST

How to adjust GST paid on advances under GST

Question : It will be difficult to link between “Advance Receipt Voucher” and invoices in case of sales billing on Cash Sale (Rail/Road)/e-Auction etc., especially in case of Rail Cash sale, where purchasers deposit money in advance to the tune of many crores for which lifting of coal has to be made from various loading point… Read More »

Category: GST

What to do if no supplies are made against an advance under GST

  Question : In case no supplies are made against an advance, will the dealer have to issue a “refund voucher” only for the advance or for advance including GST? Answer: Refund voucher has to be made for the full value of advance, including the amount of GST.   Related GST FAQ GST on Mining Sector… Read More »

Category: GST

How do I show the advance received in GSTR 1 GST Return ?

Question : How do I show the advance received in GSTR 1 ? Answer: Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances… Read More »

Category: GST

GST payable at time of receipt of advance by mining company

Question : Will GST be payable at the time of raising an invoice for supply of goods from a mining lease holder or it will be applicable on the amount of advance received by the mining company for booking the order? Answer: No. As per the provisions of section 12(2) of the CGST Act, 2017 the… Read More »

Category: GST

Buyer of goods from unregistered person needs to pay reverse tax under GST

Question : Will the buyer of goods from unregistered person pay reverse tax? Answer: A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of… Read More »

Category: GST

What is aggregate turnover under GST

  Question : What is aggregate turnover? Answer: As per section 2(6) of the CGST Act, 2017, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and… Read More »

Category: GST

Return filing and compliance simpler under GST composition scheme

Question : Is the Return filing and compliance simpler under composition scheme? Answer: Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4.   Related GST FAQ GST on Mining Sector : FAQ GST on Handicraft Sector :… Read More »

Category: GST