As per section 23 of the CGST Act, only the person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under GST is not liable of GST
Further, section 2(6) of the CGST Act define the term Aggregate Turnover means, "the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;" Given the aforesaid, exempt supply is also included while computing the limit of 10 or 20 lakh as specified if the person is engaged in taxable supply.
As per section 24 of the CGST Act, the persons making any inter-State taxable supply is liable to register under GST irrespective of aggregate turnover as specified for compulsory registration. Hence, only interstate supply is restricted for unregistered person and not the interstate procurement.
However, as per notification 10/2017 - Integrated Tax dated 13th October 2017 specifies that the person making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year is exempted from obtaining registration.
Diagram given below depict the procedure of GSTR
As per section 47 of the CGST Act, any registered person who fails to furnish the details of outward or inward supplies by the due date shall be required to pay a late fee of one hundred rupees for every day during which such failure continues subject to a maximum amount of five thousand rupees. Further, similar provisions are prescribed under SGST law. Hence, effective late fee is two hundred rupees per day and maximum applicable penalty will be ten thousand.
However during the initial period, the aforesaid filing fee is relaxed for filing of GSTR -3B. As per Notification 64/2017 -CT, late fee payable for failure to furnish return in FORM GSTR-3B for the month of October, 2017 onwards by the due date is reduced to below- Rs. 20 Per day for Nil return - Rs. 50/- Per day for other
Further, every registered person may be assigned a GST compliance rating score by the Government based on his record of compliance with the provisions of this Act. Given this non-filing of GST could affect the compliance rating.
No. Certain goods and services are not liable to GST as given hereunder.- Alcohol for human consumption, Electricity, few Petroleum product like crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel and Natural Gas, are outside the ambit of GST. - Schedule III of the CGST Act, list down the certain goods and services which are neither good nor services for the purposes of the CGST Act, 2017 and therefore these are not taxable like Sale of land, Sale of completed building etc. - Further, certain goods and services are exempt by way of notification like medical treatment, services by educational institution etc.
As per section 9 of the CGST Act, GST is levied on supply is defined in Section 7 of the CGST Act, Supply includes (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business
Further GST is also levied on certain supply as specified in Schedule I when made without consideration.
Given the aforesaid, the definition of supply is inclusive and includes all forms of supply of goods and services unless exempted or outside the ambit of the GST
Section 12 and Section 13 of the CGST law prescribes different provisions for the goods and services for time of supply. This Provisions broadly contemplate payment of GST at the earliest for:aGoods Date of issuance of invoice or the last date by which invoice is required to be issued or the date of receipt of advance bService date of issuance of invoice or the last date by which invoice is required to be issued or the date of receipt of advance Further, by way of Notification No. 40/2017-CT dated 13th October 2017 the aforesaid provisions are relaxed and the registered taxpayer having turnover below 1.5Cr allowed to pay tax on the date of invoice raised hence not required to trace receipt of advance Further by now by way of notification 55/2017-CT said notification extended to all other registered person. Hence, now GST not attract on receipt of advance on supply of goods. However, advance received for supply of services attract GST as per time of Supply (i.e. Section 13 of the CGST Act.)
As per section 15 of CGST Act, GST is payable on the transaction value. Transaction value is the price actually paid or payable for the said supply of goods and/or services if- Supply is between un-related parties and - Where price is the sole consideration.
Section 15 (2) specifically provides for inclusion and exclusion from said value. However, if any one of the aforesaid condition is not satisfied then the value is determined under valuation rules.
As per Section 15 (2) specifically discount is allowed as deduction if- Discount is given before or at the time of the supply and such discount has been duly recorded in the invoice issued. - Discount after the supply has been effected if such discount is in terms of agreement and document issued by the supplier
As per section 16 (1) of the CGST Act, registered taxable person, subject to fulfilment of prescribed conditions is entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business. However, section 17(5) of the CGST Act prescribe certain goods and services on which ITC is not allowed like Motor vehicle, Works contract unless for further supply of Works contract services etc.
Output liability payable in cash can be computed after utilisation of input tax credits in the manner as specified below- IGST input tax credits can be used first to pay IGST, then CGST, and balance if any used towards SGST - CGST input tax credits can only be used to first to pay CGST and then IGST - SGST input tax credits can only be used to first to pay SGST and then IGST The aforesaid process should be followed.
A person can claim input tax credit within one year from the date of invoice or up to the date of filing of annual return whichever is earlier.
Yes. As per section 140 of the CGST Act, a person is allowed to transfer cenvat credit in to GST subject to fulfillment of certain conditions?
Yes. Deemed credit can be availed on inputs, semi-finished and finished stock as per Section 140(3) of the CGST Act, 2017 read with Rule 117(4) of CGST Rules, 2017.
Yes. As per section 140(5) of the CGST Act, A registered person shall be entitled to take, eligible duties and taxes in respect of inputs or input services received on or after the appointed day but the duty or tax in respect of which has been paid by the supplier under the existing law, subject to the condition that the invoice or any other duty or tax paying document was recorded in the books of accounts on or before 30th July 2017. However, credit with respect to capital goods is not available.
A person intent to transfer cenvat credit in to GST regime is required to file GSTR TRAN -1 on or before 30th November 2017. Further, said date is now extended up to 27th December 2017. (Order No. 10/2017-GST and Order No. 9/2017- IGST) In this regard, the detailed procedure is referred in Rule 117 of the CGST rules.
Export is zero rated supply. A person engaged in the export may either export without payment of GST under the cover of letter of undertaking or export with payment of IGST and afterwards claim the refund of the same.
As per Rule 96A of CGST Rules, any registered person exporting goods or services without payment of integrated tax is required to furnish bond or letter of undertaking (LUT) in Form GST RFD-11.As per Notification No. 37/2017- Central tax and Circular No. 8/8/2017-GST1 The facility of export under LUT has been now extended to all registered persons for export of goods and services without payment of integrated tax ,except those who have been prosecuted for any offence under the CGST Act or IGST Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds two hundred and fifty lakh rupees 2 The LUT shall be valid for the whole financial year in which it is tendered 3 The LUT shall be executed by the Managing Director or the Company Secretary or by a person duly authorised by Board of Directors of such Company on the letter head of the Company.
Further the documents given below are required to be submitted with GST authorities- Request latter - GST RFD-11 - Letter of Undertaking - Declaration for LUT
No. GST law has not prescribed any format under GST. However, tax invoice issued by the registered person should contain all particulars as prescribed under Rule 46 of the CGST rules.
A person who has opted for composition scheme is required to raise bill of supply having particulars as per Rule 49 of the CGST Act.
A person is required to pay GST by way of online means by following the method given below.- Logging on to GSTN Common Portal where basic details (such as name, address, email, mobile no. and GSTIN) of the tax payer will be auto populated in the challan. - Click on tab Payment and then create challan. - After creation of challan pay GST by way of online banking.
No. It is not mandatory to use services of ASP or GSP for filing of GST return. Though it is not mandatory ASP or GSP will primarily help to file GST return faster and in easy way.