Daily Archives: August 3, 2017

Pay 20% of disputed demand for Stay of Demand at CIT (A) of Income Tax :DATED 31-7-2017

SECTION 220 OF THE INCOME-TAX ACT, 1961 : COLLECTION AND RECOVERY OF TAX – WHEN TAX PAYABLE AND WHEN ASSESSEE DEEMED IN DEFAULT : RECOVERY OF OUTSTANDING TAX DEMANDS : PARTIAL MODIFICATION OF INSTRUCTION NO.1914, DATED 21-3-1996 TO PROVIDE FOR GUIDELINES FOR STAY OF DEMAND AT FIRST APPEAL STAGE OFFICE MEMORANDUM [F.NO.404/72/93-ITCC], DATED 31-7-2017 Instruction No.… Read More »

GST on sale of Branded and Unbranded products : FAQ

Question : I am a whole seller of rice dealing in both branded and un-branded rice. I purchase them locally (i.e. from within the State) and also from outside the State (inter-State purchase). In the last financial year my turnover was Rs 5.5 Crore. Today, I am not registered under VAT.My questions are: (i) Will I… Read More »

GST on Atta / Maida / Besan supplied in bulk

Question : Is Atta/Maida/Besan supplied in bulk liable to tax under GST? Answer: Outward supply of these goods if effected without registered brand name is exempt under GST. However , if the outward supply is made under a registered brand name and put up in unit container then it would be liable to tax @ 5%.  … Read More »

Category: GST

GST ITC not available on Capital Goods sold pre GST but received post GST

Question : The supplier has sold machinery for hotel industry on 28-06-2017. The purchaser has received the invoice and machinery on 05-07-2017. Whether ITC of Duty/VAT paid ( under the existing law ) on machinery can be allowed to be claimed ? Answer: No. Such credit is not admissible in case of machinery, being capital goods. As… Read More »

Category: GST

Supplier can reduce GST on goods returned

  Question : Whether the supplier can reduce the tax elements against goods returned to him? Answer: Yes, the person is eligible to reduce the tax liability by issuing credit notes to his recipient for such returned goods subject to the condition that the recipient reduces the claim of ITC to that extent if ITC was availed… Read More »

Category: GST

Manufacturer can claim GST ITC on rental premises

Question : A registered person is a manufacturer of taxable food items. His factory is in rental premises. Whether this person is eligible to claim ITC on tax charged on the rental amount? Answer: Yes, the person is eligible to claim ITC of tax charged on the rental amount. Related GST FAQ GST on Food Processing Industry… Read More »

Category: GST

Exchange Rate of Foreign Currency w.e.f 04.08.2017

Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified  In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Excise and Customs No.72/2017-CUSTOMS (N.T.), dated 20th July, 2017, except as respects things done or omitted… Read More »

GST on transportation charges if paid by recipient on behalf of supplier

Question : A registered person under GST is supplying manufactured food products to another person. Transportation charges are required to be paid by the supplier but are actually paid by the recipient. Whether this transportation charges would be added in the supply value? Answer: If the supplier is liable to pay any amount in relation… Read More »

Category: GST

GST registration in case of multiple manufacturing units in state

Question : If I have multiple manufacturing units in a State/UT, do I have to register all my companies separately or as a group under GST? Answer: You shall be granted a single registration in the State/UT. However, you have the option to take separate registration for each of your business verticals (as defined in… Read More »

Category: GST

GST FAQ on HSN Codes

 GST FAQ on HSN Codes 1. What is the HSN code and GST rate for lac or shellac bangles? Lac or shellac bangles are classifiable under heading 7117 and attract 3% GST. 2. What is the HSN code and GST rate for kulfi? Kulfi is classifiable under heading 2105 and attracts 18% GST. 3. What… Read More »

No TCS under GST if selling goods on website under own billing

  Question : We purchase goods from different vendors and are selling them on our website under our own billing. Is TCS required to be collected on such supplies? Answer: No. According to Section 52 of the CGST Act, 2017, TCS is required to be collected on the net value of taxable supplies made through… Read More »

Category: GST

Pay GST if Selling products through own website

Question : I am a supplier selling my own products through a web site hosted by me. Do I fall under the definition of an “electronic commerce operator” ? Am I required to collect TCS on such supplies ? Answer: As per the definitions in Section 2 (44) and Section 2(45) of the CGST Act,… Read More »

Category: GST

Supplier can have different GST Tax Invoice series for each location

Question : GST requires a dealer to maintain a consecutive serial number for invoices. If we are supplying from multiple locations, do we need to centrally maintain the invoice numbers serially? Answer: Rule 46 of the CGST Rules, 2017 provides that invoice may have “a consecutive serial number not exceeding sixteen characters, in one or… Read More »

Category: GST

Deduction of TCS under GST if two or more e-Commerce operators involved

Question : There are transactions in which two or more ECOs (e-Commerce operators)  are involved. In such cases who would deduct the TCS? Answer: In such cases, each transaction needs to be treated separately and examined according to the provisions of Section 52 of the CGST Act, 2017. The TCS will be deducted accordingly.  … Read More »

Category: GST

Online travel agents required to collect TCS under GST

Question : Do travel agents providing services through digital or electronic platform qualify as ECOs? Will they be required to collect tax at source as per the provisions of Section 52 of the CGST Act, 2017? Answer: Online travel agents providing services through digital or electronic platform will fall under the category of ECOs liable… Read More »

Category: GST

Use of same premises of e-Commerce operators by multiple persons under GST

Question : The sellers supplying goods through e-Commerce operators (ECO) may have common places of business, especially if their goods are stored in a shared facility operated by the ECO. This will result in the same additional place of business being registered by multiple suppliers. Is this allowed? Answer: Yes, this is allowed. Any registered… Read More »

Category: GST

What will happen if GST details of E Commerce operator remain unmatched

  Question :  What will happen if the details of supplies furnished by e-commerce remain mismatched under GST? Answer: The amount in respect of which any discrepancy is communicated and which is not rectified by the supplier in his valid return or the operator in his statement for the month in which discrepancy is communicated… Read More »

Category: GST

What is concept of matching in e-commerce provisions under GST

Question : What is the concept of matching in e-commerce provisions and how it is going to work? Answer: The details of supplies furnished by every operator in his statement for the month will be matched with the corresponding details of outward supplies furnished by the concerned supplier in his valid return for the same… Read More »

Category: GST

Statements e-commerce operator required to submit under GST

Question : Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement? Answer: Yes, every operator is required to furnish a statement, electronically, containing the details of outward supplies of goods or services effected through it, including the supplies of goods or services… Read More »

Category: GST

How can actual suppliers claim credit of TCS under GST

Question : How can actual suppliers claim credit of  TCS ( deducted by E commerce operator) under GST ? Answer: The amount of TCS paid by the operator to the government will be reflected in the GSTR-2 of the actual registered supplier (on whose account such collection has been made) on the basis of the… Read More »

Category: GST

When should e-commerce operator pay TCS under GST to Govt

Question : What is the time within which such TCS is to be remitted by the e-commerce operator to Government? Answer: The amount collected by the operator is to be paid to the government within 10 days after the end of the month in which amount was so collected. (Refer to Section 52(3) of the… Read More »

Category: GST

When should E commerce operator collect Tax under GST

Question : What time should the e-commerce operator make collection of tax under GST ? Answer: The e-commerce operator should make the collection during the month in which the consideration amount is collected from the recipient. ( Note :every e-commerce operator (other than an operator required to pay tax under section 9(5) of the CGST… Read More »

Category: GST

What is Tax Collection at Source (TCS) under GST?

Question : What is Tax Collection at Source (TCS)? Answer: The e-commerce operator is required to collect an amount at the rate of one percent (0.5% CGST + 0.5% SGST) of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator.… Read More »

Category: GST

GST threshold exemption not available to electronic commerce operators for notified services

Question : Will threshold exemption be available to electronic commerce operators liable to pay tax on notified services? Answer: No. Threshold exemption is not available to e-commerce operators who are required to pay tax on notified services supplied through them. (Refer to Notification No. 17/2017- Central Tax (Rate) and Notification No 14/2017- Integrated Tax (Rate) dated… Read More »

Category: GST

Mandatory for e-commerce operator to obtain GST Registration

Question : Is it mandatory for e-commerce operator to obtain registration? Answer: Yes. As per Section 24(x) of the CGST Act, 2017 the benefit of threshold exemption is not available to e-commerce operators and they are liable to be registered irrespective of the value of supply made by them. Related GST FAQ GST on E… Read More »

Category: GST

Meaning of e-commerce operator under GST

Question : Who is an e-commerce operator ? Answer: Electronic Commerce Operator has been defined in Section 2(45) of the CGST Act, 2017 to mean any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Related GST FAQ GST on E Commerce : FAQ GST on Mining Sector :… Read More »

Category: GST

What is Electronic Commerce meaning under GST

Question : What is Electronic Commerce? Answer: Electronic Commerce has been defined in Section 2(44) of the CGST Act, 2017 to mean the supply of goods or services or both, including digital products over digital or electronic network.   Related GST FAQ GST on E Commerce : FAQ GST on Mining Sector : FAQ GST… Read More »

Category: GST

Easy Steps to create GSTR 1

Easy Steps to create GSTR 1   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 GST… Read More »

Category: GST