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Implementation of GST is knocking the door on 1st July, 2017, every Business houses, Traders, Retailer, Aam Admi, Tax Professionals etc,are chating about it and checking that to what extent GST is affecting to their business activity. The Government, Professionals and Business association are organizing GST workshops, Seminars , GST awareness program in public as well in within. To remove doubts and confusion of the public CBEC has started new Twitter Handle @askGST_GoI to invite queries from all taxpayers on GST from 28th May, 2017.

Here, we presents Few Important clarifications for GST given by CBEC on Twitter

  • ITC is available only if engaged in taxable activities. If goods (Supplies) are exempt, ITC cannot be availed nor can it be carried forward.
  • One Invoice cannot contain both Exempted and Taxable Supplies. Have to issue Separate Invoices. Tax Invoice/Bill of Supply for Taxable Items and Bill of Supply for Exempted Items.
  • Items on Cess is applicable. It would be additive and not multiplicative e.g. Pan Masala (chapter 21) falls in 28% Category. It also attracts 60% cess . The total Tax would be 88% (100*28%+100* 60%) and not 104.8% (100*28%+128*60%).
  • Refund/Rebate would not be processed automatically. For Refund / Rebate, One has to file application and after processing of that eligible amount would be directly credited to bank account
  • Services by employee to employer shall be treated neither as supply of goods nor of services. On Payment of Salary to Employees working in Branches, registered as distinct registered person from Head Office.
  • No separate limit for excise duty exemption in GST. Anybody with aggregate turnover up to Rs.20 lakh (10 lakh in Special Category States) is exempt. Exemptions like SSI under Excise shall not exist anymore under GST Regime.
  • No Concept of Payment of GST on MRP Basis.
  • E-Commerce companies are required to register only where they are located and not in each of Seller’s State, but Seller need to take Registration in his state.
  • Input Credit of Swachh Bharat Cess & Krishi Kalyan Cess can not be carried forwarded to GST.
  • Routine Filing of GST Return & other Documents can be done by Tax Payer Himself.
  • GST does not differentiate between Fresh/New Goods or Used/Second-Hand Goods.
  • New Registration (Other than Migrated Cases) will start before 1St July’2017.
  • Rules related to E-Way Bill is being reviewed and can be revised if required.
  • There is no change in format of GSTIN and therefore provisional and final GSTIN would be same.
  • Separate registration as supplier and tax deductor is required. (Also holding TAN under Income Tax is mandatory for tax deductor under GST)
  • If already registered in a State, another registration have to be taken for SEZ unit in the same State.
  • In GST regime, there is no provision for area based exemptions and thus CGST would be payable which can be recovered from customers.
  • Services rendered by Advocates, Recipient has to pay tax under Reverse Charge, But if an Advocate avail any taxable service from unregistered person, Advocate shall pay Tax on the same.
  • Remuneration to partners over & above share of profits not in nature of employer-employee relationship.
  • ITC of input tax will be available for payment of cess under GST.
  • Mandi Samiti tax will continue as not subsumed in GST.
  • If Registered at Delhi and Rent your property at Mumbai for commercial use, also have to get registration at Mumbai .
  • If one has manufacturing unit and Sales office in same state, a common registration would suffice.
  • IGST credit of Maharashtra cannot be utilized against the liability of Gujarat. ITC pool cannot be cross utilized among distinct persons.
  • Only direct export of goods/services and SEZ supplies are zero rated u/s 16(1) for which claim of refund is allowed u/s 16(3) of IGST Act to the exporter.
  • States can’t defy recommendations of GST Council & can’t issue their independent Notification. Every notification has to be mandatory recommended by GSTC.
  • If the discount is established beforehand through agreement, specifically linked to relevant invoices & corresponding ITC reversed then GST is levied excluding such discount value.
  • Closing balance of edu cess and secondary higher education cess prior to 1st Mar 2015 cannot be carried forward in GST.
  • Inter-state suppliers liable for registration irrespective of turnover. Nil rated supplies are taxable supplies. Only if exclusively making non-taxable supplies, not liable for registration.
  • E-Commerce Operator can sell his own goods on the same portal with single registration.
  • GST would be deposited as SGST and CGST under one payment cha Ilan. Input Service Distributor is just an option to distribute Input Credit and not Mandatory.
  • Exporters will get refund of GST paid for goods to produce the material.
  • One Registration for all SEZ Units together in same SEZ Zone. No Separate Registrations required.
  • You can file GST Return through 3 ways Using GST Common Portal/Using offline Utility and uploading the JSON on GST Common Portal/ Through GSP.
  • The name used in enrollment data needs to be same as on PAN.
  • For GSTIN User ID will remain same irrespective of Number of Business Places.
  • If you have migrated to GST but turnover is less than threshold limit, you can get your registration cancelled.
  • Voucher would either be goods or services depending on for which item it can be redeemed for.
  • Simplified export procedure under GST and final Transition Rules would be placed in public domain soon.
  • If Advance taken in June’17 and activity also finished in June’17, current Laws will be applicable, but if activity takes place in July’17 or Later, GST would be applicable.
  • If supplier is located in India and place of supply is outside India, then it is an inter-state supply u/s 7(5)(a) of IGST Act.
  • Job worker has to get registration in case turnover exceeds threshold limit, even if supplier is registered.
  • If any asset is moved/transferred to Branch (Distinct/Related Person) in another state, it will amount to stock transfer and IGST would be applicable.
  • Existing VAT and Excise Credits can be carried forwarded to GST.

You can directly call GST Help Line No. 0124-4688999 or mail at helpdesk@gst.gov.infor some specific queries. (Note : Above all clarifications are not verified by us, it is merely for knowledge purpose)

Outcome of Meeting held on 3rd Jun, 2017

  • Packaged food items sold under registered trademarks to be taxed at 5 per cent.
  • GST on Agri machinery fixed at 5 per cent
  • GST on apparel below Rs 1,000 fixed at 5 per cent
  • A nominal rate of 0.25 imposed on rough diamond
  • “0” per cent tax on Jute
  • GST Council will set up committee to look into complaints regarding anti-profiteering clause, said
  • Bidi to be taxed at 28% without cess. However Beedis are still under discussion, no proposal of cess for beedis
  • GST rate for gold fixed at 3 per cent
  • Gold, gems, jewellery to be taxed at 3 per cent
  • Footwear priced below Rs 500 to be taxed at 5%, the rest at 18%
  • Ready-made garments to attract 12% GST; Yarn and fabric cotton 5 per cent (Natural yarn to be taxed at 5 per cent, man-made yarn at 18 per cent)
  • GST on all biscuits to be 18%

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4 thoughts on “GST related Clarifications by CBEC on Twitter

  1. umesh says:

    As a trader the GSTRegistration no validation can be done onsite itself just like TDS return filing since it can easily take the matching of name pan or GSTN which will reduce the time of uploading then and there.

    1. Pritesh Mistry says:

      You may verify whether your customer/vendor is registered or not – see below link.

  2. umesh says:

    when a trader supply goods for demo / or detailing /or working purpose at a shop for one month basis what is the procedure for sending the goods and the liability if any and the billing format or declaration on this

    1. Pritesh Mistry says:

      If you are a Registered Entity and you sending goods for demonstration or detailing or working purpose at a shop your responsible to issue tax invoice with GST and when goods returns you may take reversed the tax invoice and reverse the GST

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