Compilation of Tweets GST FAQs - All at one place

S.No.

Questions / Tweets Received by askGST_GOI

Replies

Registrations

1.

Does aggregate turnover include value of inward supplies received on which RCM is payable?

As Per Sec. 2(6) of CGST Act, Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.

2.

 If the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?

New registration would be required as partnership firm would have new PAN.

3.

A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?

He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies. Although in case of supply of service

4.

If I buy raw material from supplier unregistered in GST, do I have to pay GST in RCM and can I avail ITC of the same?

Yes, you have to pay GST via RCM. You can avail ITC of the GST so paid if you are otherwise eligible. [But till 31^st March 2018 such provision is suspended)

5.

I was registered under Central Excise or Service Tax, but could not migrate and therefore have taken a new registration. Will I be eligible for transitional credit?

In your new registration application, if you have referred to your past registration no. of Central Excise or Service Tax, you will be eligible for transitional credit under Section 140 of CGST Act, 2017 read with Rule 117 of CGST Rules, 2017

6.

Existing taxpayer registering a branch office in another state comes under fresh registration or under existing tax payer registration? The registration in other State would come under fresh registration. 4. Is registration necessary if only

The registration in other State would come under fresh registration.

7.

Is registration necessary if only interstate supply of Nil rated goods is being made?

As per sec. 23 of CGST Act, If exclusively making supplies of Nil rated supplies, registration is not compulsory.

8.

Whether franchisor company will have to take registration in each state where outlets are located?

No, a franchisor company need not take registration in a state where only its franchisee is located.

9.

A firm dealing exclusively in exempted products has GST registration; does it need to file return?

If registered, then you need to file returns. You may choose to cancel your registration since you are dealing only in exempted products.

10.

My all outward supplies are export services. In this case is it compulsory to register under GST?

Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.

11.

Can a person operating two different companies with different names but with same PAN get two GST registrations

One PAN holder gets one registration in every state, but he has the option of getting different registrations for different business verticals.

12.

I am a service provider with turnover of Rs. 50 lakhs in one state only. Am I eligible for the composition scheme?

Service providers, except restaurants/caterers, are not eligible for composition scheme.

13.

I am an ice cream manufacturer with sales in one state only. Can I avail the option of composition?

No. The following three classes of persons, namely

 · Ice cream and other edible ice, whether   or not containing cocoa.

 · Pan masala

· All goods, i.e. Tobacco and manufactured tobacco substitutes are not eligible for benefit of composition scheme.

14.

If I register under the composition scheme, can I opt out of it later? What happens to my stock if I do so?

Those availing composition can exit and opt for normal tax scheme anytime. They would be eligible for ITC on stocks available on the date of switchover in terms of section 18(1)(c ) of CGST Act, 2017.

15.

Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?

If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.

Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?

A supplier of service will have to register at the location from where he is supplying services.

17.

If there are two SEZ units within same state, whether two registrations are required to be obtained?

SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules

18.

If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?

Yes, you would be treated as a normal taxable person.

19.

Is separate registration required for trading and manufacturing by same entity in one state?

There will be only one registration per State for all activities

20.

How long can I wait to register in GST ?

An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.

21.

Whether job worker is required to register? Whether composition scheme is available to a job worker?

Job workers making taxable supplies above the threshold aggregate turnover need to register.

Composition scheme is not available to job-workers. They, however, can avail benefit of section 143 of the CGST Act.

Transitional Provisions

22.

I was unregistered in excise before and now in 18% slab? Can I take credit of stock if I don’t have invoices?

Deemed credit will be available to you for stock as duty paying documents are not available, subject to provisions of section 140 (3) of the CGST Act, 2017 read with Rule 140(4) of CGST Rules, 2017

23.

I enjoyed SSI Exemption in Excise and did not register; how do I now take credit of stock lying with me?

Credit may be availed on the basis of document evidencing payment of duty on inputs as per section 140(3) of the CGST Act, 2017 read with Rule 140(4) of CGST Rules, 2017

For textile trader or manufacturers, with input stock without payment of excise duty but GST being charged on final sale, shall we get credit of such stock?

Credit of stock which was unconditionally exempt from excise duty or was NIL rated shall not be available. Please see Rule 117(4) of the CGST Rules, 2017.

25.

Is there any format for invoice under GST? If yes, please provide the link of the same.

No there is no particular format. Rule 46 of the CGST Rules, 2017 prescribes the particulars to be contained in Invoice.

26.

Whether from 1st July sequence of invoice no. will change? Or can we follow the same sequence?

Same sequence can be followed provided conditions laid down in Section 31 of the CGST Act, 2017 read with Rule 46 of CGST Rules, 2017 are met.

27.

If my turnover is less than 1.5 crores, do I need to mention HSN code on my invoice?

Specifying HSN code on invoice is optional for taxpayers having turnover upto 1.5 crores

28.

We are Excise registered dealers and have stock older than 1 year for which Excise is paid. Will we get Input tax credit?

You will be entitled to carry forward closing balance of CENVAT credit shown in your last return filed under Central Excise Act.

29.

For taxpayers with centralized registration under Excise/ST, what is to be treatment of CENVAT after migration?

CENVAT credit lying in balance in the return filed for period upto 30.06.17 is to be allowed as CGST credit as per Section 140(8) of the CGST Act, 2017 read with Rule 117(2) of CGST Rules, 2017.

30

Can I use my CGST/SGST credit to set off my IGST liability?

CGST credit can be first used to set off CGST liability. Whatever is left can be used to set off IGST liability. It cannot be used to set off SGST liability. Similarly, SGST credit can be used to set off SGST and IGST liability, in that order. It cannot be used to set off CGST liability. Please see Section 49 of the CGST Act, 2017.