Daily Archives: August 22, 2017

GST Treatment if gold issued to Job Worker

By | August 22, 2017

Question 8: When we issue gold as raw material to our Job Worker for Job Work and he returns that gold as finished goods,what GST treatment will be done and how to calculate the value? Answer: The job worker, if registered, would be required to pay GST at the rate of 5% on job charges… Read More »

Category: GST

Refund of Excess GST paid by Banks on Gold

By | August 22, 2017

Question 6: Banks pay provisional VAT currently at the time of delivery of gold on the basis of ongoing market prices. When customer fixes the price of metal, Banks pay actual VAT on the maturity date of the Gold Loan. Banks must be allowed to set-off the excess provisional GST paid to the government against… Read More »

Category: GST

Pay GST on Provisional Basis on lending of Gold

By | August 22, 2017

  Question 5: Banks lend gold in physical form for a period not exceeding 6 months. Banks receive interest on the gold ounces disbursed and the same is converted into Rupees after calculation of interest on the ounces and the USD/INR conversion. Will the same methodology continue in case of GST as well wherein Banks… Read More »

Category: GST

Pay 3% IGST on Import of precious metals

By | August 22, 2017

Question 2: Currently Banks do not pay any VAT on import of precious metals. Banks/nominated agencies pay only customs duty on imports. In the new regime of GST, will the Banks have to pay IGST while importing? Answer: Yes, 3% IGST is payable on all imports of precious metals in addition to the basic customs… Read More »

Category: GST

GST on advertising material to distributors

By | August 22, 2017

Question 1: Whether advertising and communication material (banners / hoardings / posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC under GST Act . Answer: (a) Where the material is provided free of cost: This would not amount to a… Read More »

Category: GST

GST on Gems & Jewellery : FAQ

By | August 22, 2017

GST on Gems & Jewellery Question 1: Whether advertising and communication material (banners / hoardings / posters) provided to distributors would be treated as supply in the course of business by the company thereby not requiring any reversal of ITC. Answer: (a) Where the material is provided free of cost: This would not amount to… Read More »

When should Govt department Take GST registration

By | August 22, 2017

Question 31: Whether a Government Department, required to deduct tax at source, is liable to take registration as a normal taxpayer? Answer: The Government Department is required to take registration as a normal taxpayer only if it makes a taxable supply of goods and/or services and in such cases, the registration shall be obtained on… Read More »

Category: GST

GST on Reverse Charge basis on royalty paid to Govt for rights to use natural resources

By | August 22, 2017

  Question 30: Whether an amount in the form of royalty or any other form paid/payable to the Government for assigning the rights to use of natural resources is taxable under GST ? Answer: The Government provides license to various companies including Public Sector Undertakings for exploration of natural resources like oil, hydrocarbons, iron ore,… Read More »

Category: GST

Meaning of pure services provided to Govt under notification No 12/2017 Central Tax (Rate)

By | August 22, 2017

  Question 25: What is the scope of ‘pure services’ mentioned in the exemption notification No. 12/2017-Central Tax (Rate), dated 28.06.2017? Answer: In the context of the language used in the notification, supply of services without involving any supply of goods would be treated as supply of ‘pure services’. For example, supply of man power… Read More »

Category: GST

GST on Reverse Charge basis on Services received from Govt / local authorities

By | August 22, 2017

Question 24: Whether reverse charge is applicable to services provided by Government or local authorities ? Answer: Yes, reverse charge is applicable in respect of services provided by Government or local authorities to any person whose turnover exceeds Rs.20 lakhs (Rs.10 lakhs for Special Category States) excluding the following services: (i) renting of immovable property;… Read More »

Category: GST

What is reverse charge in GST ?

By | August 22, 2017

  Question 23: What is reverse charge in GST ? Answer: As per 2(98) of the CGST Act, 2017, ‘’reverse charge” means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4)… Read More »

Category: GST

No GST on Change of Land use , commercial building approval & utility services by Govt

By | August 22, 2017

  Question 19: Whether services in the nature of change of land use, commercial building approval, utility services provided by a governmental authority are taxable? Answer: Regulation of land-use, construction of buildings and other services listed in the Twelfth Schedule to the Constitution which have been entrusted to Municipalities under Article 243W of the Constitution, when… Read More »

Category: GST

Functions of Panchayat under Article 243G of Constitution ?

By | August 22, 2017

Question 17: What are the functions entrusted to a Panchayat under Article 243G of the Constitution? Answer: The functions entrusted to a Panchayat under the Eleventh Schedule to Article 243G of the Constitution are as under: (i) Agriculture, including agricultural extension. (ii) Land improvement, implementation of land reforms, land consolidation and soil conservation. (iii) Minor… Read More »

Category: GST

Functions of municipality under Article 243W of Constitution

By | August 22, 2017

Question 16: What are the functions entrusted to a municipality under Article 243W of the Constitution Answer: The functions entrusted to a municipality under the Twelfth Schedule to Article 243W of the Constitution are as under: (a) Urban planning including town planning. (b) Regulation of land-use and construction of buildings. (c) Planning for economic and… Read More »