24 FAQ on GST Replied by Government (CBEC) on 22.12.2017

FAQ on GST has been issued by the official twitter handle of the Government (CBEC) on 22^nd December 2017. These tweets are for educational purposes only and not applicable to any legal proceedings.

Source: Twitter of GoI

Question 1: When will e-way bill system be applicable?

Answer: As decided at the 24th GST Council meeting, nationwide e-way Bill will be made compulsory from 01.02.2018; trials to start from 16.01.2018.

Question 2: What is the last date for filing TRAN-1?

Answer: 27.12.2017. Please refer Orders 9/2017-GST and 10/2017, both dated 15.11.2017

Question 3: Does aggregate turnover include value of inward supplies received on which RCM is payable?

Answer: Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis. Please refer to section 2 (6) of CGST Act.

Question 4: I exported without payment of IGST. Now RFD option is available on common portal. Can I opt for the refund of unutilised ITC?

Answer: Yes you may. Please refer circular 17/17/2017 dt. 15.11.2017 for detailed procedure

Question 5: What is the last date for filing Form GST ITC-04?

Answer: 31.12.2017. Please refer to notification No. 63/2017-CT, dt 15.11.2017

Question 6: What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?

Answer: New registration would be required as Partnership firm would have new PAN.

Question 7: What are the requirements for clearance of physician samples distributed free of cost?

Answer: In case of clearance of free physician samples, the ITC availed on the said samples has to be reversed under section 17(5)(h) of the CGST Act, 2017. No tax is payable on clearance of physician samples distributed free of cost as the value of supply is zero.

Question 8: I am a software company. If I import software services, am I eligible to pay IGST?

Answer: Yes, as it is an inter-State supply under section 7 (4) of the IGST Act, you will be liable to pay IGST.

Question 9: I export services but turnover is below threshold. Should I take registration?

Answer: Yes, as it is an inter-State supply, you are liable to take mandatory registration under section 24.

Question 10: I am a small startup firm. What is the frequency of filing FORM GSTR-1 and FORM GSTR-3B?

Answer: If your turnover is below Rs. 1.5.Crore, you have to file GSTR-1 quarterly (Notfn 57/2017-Central Tax dt 15.11.2017). All taxpayers are required to file GSTR-3B monthly, until March 2018. (Notfn 56/2017-CT, dt 15.11.2017 and Notfn 35/2017-CT, dt 15.09.2017)

Question 11: What is the time limit for availing input credit under GST?

Answer: As per S. 16(4) of the CGST Act, 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 earlier.

Question 12: Can refund of ITC accumulated on purchase of capital goods used for business be done?

Answer: No, it is not allowed

Question 13: For an under construction flat where the transaction was initiated post 1st July, how do I confirm if the builder has revised the pricing accordingly to the ITC claimed?

Answer: The builder needs to adjust his price (without taxes) to the extent of ITC available to him.

Question 14: 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?

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

Question 15: Is salary by partnership firm to partners as per Income Tax Act liable to GST?

Answer: No GST is leviable on salary.

Question 16: What duties are levied on import of goods?

Answer: Customs duty and cess as applicable + IGST+ GST compensation cess if any

Question 17: When is the tax to be paid on advances received in case of supply of goods?

Answer: For persons other than composition dealers, at the time of issuance of invoice or its clue date. Please refer notification 66/2017-CT, dated 15.11.2017.

Question 18: I received the services in June, 2017 and made payment in August 2017. Is GST applicable?

Answer: Please check the Point of Taxation Rules, 2011 to know if point of taxation has been completed in this case in June 2017. If so, this transaction is liable to Service Tax, not GST.

Question 19: Is a job worker required to take registration?

Answer: As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds Rs.20 lakhs or, Rs.10 Lakhs in special category states except the State of Jammu and Kashmir.

Question 20: I short paid the tax for the month of Sep 2017 and will deposit the remaining now. Is interest applicable?

Answer: Yes. Interest is applicable on this.

Question 21: Are local bodies allowed to make deduction under section 51? If not, how do I claim refund of the same?

Answer: No, deduction under section 51 has not yet been notified. For refund of wrongly deducted tax, please see section 51 (8).

Question 22: Education Cess and SHE Education Cess carried forward in ER-1-whether eligible for ITC?

Answer: No. Credit of Education Cess and SH Education Cess cannot be carried forward.

Question 23: I supply through an e-commerce operator whose turnover is below Rs. 20 lacs. Should I take registration?

Answer: If you are a supplier of services with turnover below Rs. 20 Lac, you are exempted from registration. Please refer Notification No. 65/2017 – Central Tax, dated 15.11.2017

Question 24: Is a job worker required to take registration?

Answer: As job work is a service, it would be considered a supply and the job worker would be required to obtain registration if his aggregate turnover exceeds Rs.20 lakhs or, Rs.10 Lacs in special category states except the State of Jammu and Kashmir.