Frequently Asked Questions on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI

FAQ on GST (Goods and Services Tax) - Part VII

This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q&A are derived from above document with modifications.


75. What is job work? 

Job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person. The person who is treating or processing the goods belonging to other person is called ‘job worker’ and the person to whom the goods belong is called ‘principal’.

76. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises? 

Yes, the principal is allowed to do so. The input tax credit of tax paid on inputs or capital goods can also be availed by the principal in such a scenario. The inputs or capital goods must be received back within one year or three years respectively failing which the original transaction would be treated as supply and the principal would be liable to pay tax accordingly.

77. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises? 

Yes. But the principal should have declared the premises of an unregistered job worker as his additional place of business. If the job worker is a registered person then goods can be supplied directly from the premises of the job worker.

78. What is input tax? 

Input tax means the central tax (CGST), State tax (SGST), integrated tax (IGST) or Union territory tax (UTGST) charged on the supply of goods or services or both made to a registered person. It also includes tax paid on a reverse charge basis and integrated tax goods and services tax charged on the import of goods. It does not include tax paid under composition levy

79. Can GST paid on reverse charge basis be considered as input tax? 

Yes. The definition of input tax includes the tax payable under the reverse charge.

80. What are the conditions necessary for obtaining ITC? 

Following four conditions are to be satisfied by the registered taxable person for obtaining ITC:
(a) he is in possession of tax invoice or debit note or such other tax paying documents as may be prescribed;
(b) he has received the goods or services or both;
(c) the supplier has actually paid the tax charged in respect of the supply to the government, and
(d) he has furnished the return under section 39.

81. A person becomes liable to pay tax on 1st August 2017 and has obtained registration on 15th August 2017. Such person is eligible for input tax credit on inputs held in stock as on: 
1st August 2017 
31st July 2017 
15th August 2017 

He cannot take credit for the past period 31st July 2017

82. What is the purpose of returns? 

a) Mode for transfer of information to tax administration;
b) Compliance verification program of tax administration;
c) Finalisation of the tax liabilities of the taxpayer within stipulated period of limitation; to declare tax liability for a given period;
d) Providing necessary inputs for taking policy decision;
e) Management of audit and anti-evasion programs of tax administration.

84. Who needs to file Return in GST regime? 

Every person registered under GST will have to file returns in some form or other.  A registered person will have to file returns either monthly (normal supplier) or quarterly basis (Supplier opting for composition scheme).

An ISD will have to file monthly returns showing details of credit distributed during the particular month.  A person required to deduct tax (TDS) and persons required to collect tax (TCS) will also have to file monthly returns showing the amount deducted/collected and other details as may be prescribed.

A non-resident taxable person will also have to file returns for the period of activity undertaken.

85. Whether all invoices will have to be uploaded? 

No.It depends on whether B2B or B2C plus whether Intra-state or Inter-state supplies.

For B2B supplies, all invoices, whether Intra-state or Inter- state supplies, will have to be uploaded. Why So? Because ITC will be taken by the recipients, invoice matching is required to be done.

In B2C supplies, uploading, in general, may not be required as the buyer will not be taking ITC. However still in order to implement the destination based principle, invoices of value more than Rs.2.5 lakhs in inter-state B2C supplies will have to be uploaded. For inter-state invoices below 2.5 lakhs and all intra-state invoices, state wise summary will be sufficient.

86. Whether the description of each item in the invoice will have to be uploaded? 

No. In fact, description will not have to be uploaded. Only HSN code in respect of the supply of goods and Accounting code in respect of the supply of services will have to be fed. The minimum number of digits that the filer will have to upload would depend on his turnover in the last year.

87. Is the scanned copy of invoices to be uploaded along with GSTR-1? 

Only certain prescribed fields of information from invoices need to be uploaded.

88. Who is the person responsible for making an assessment of taxes payable under the Act? 

Every person registered under the Act shall himself assess the tax payable by him for a tax period and after such assessment, he shall file the return required under section 39.

Sajeev