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
31. Is there any provision in GST for the tax treatment of goods returned by the recipient?
Yes, Section 34 deals with such situations. Where the goods supplied are returned by the recipient, the registered person (supplier of goods) may issue to the recipient a credit note containing the prescribed particulars. The details of the credit note shall be declared by the supplier in the returns for the month during which such credit note was issued but not later than September following the end of the year in which such supply was made or the date of filing of the relevant annual return, whichever is earlier.
The details of the credit note shall be matched with the corresponding reduction in claim for input tax credit by the recipient in his valid return for the same tax period or any subsequent tax period and the claim for reduction in output tax liability by the supplier that matches with the corresponding reduction in claim for ITC by the recipient shall be finally accepted and communicated to both parties.
32. What is Anti-Profiteering measure?
As per section 171 of the CGST/SGST Act, any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. An authority may be constituted by the government to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.
33. Will giving away essential commodities by a charitable institution be taxable activity?
In order to be a supply which is taxable under GST, the transaction should be in the course or furtherance of business. As there is no quid pro quo involved in supply for charitable activities, it is not a supply under GST.
34. Who can notify a transaction to be supply of goods or services?
Central Government or State Government, on the recommendations of the GST Council
35. What are composite supply and mixed supply? How are these two different from each other?
Composite supply is a supply consisting of two or more taxable supplies of goods or services or both or any combination thereof, which are bundled in natural course and are supplied in conjunction with each other in the ordinary course of business and where one of which is a principal supply.
e.g when a consumer buys a television set and he also gets warranty and a maintenance contract with the TV, this supply is a composite supply. TV is the principal supply, warranty and maintenance service are ancillary.
Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately.
e.g. shopkeeper selling storage water bottles along with refrigerator. Bottles and the refrigerator can easily be priced and sold separately.
36. What is the treatment of composite supply and mixed supply under GST?
Composite supply shall be treated as supply of the principal supply.
Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax.
37. Are all goods and services taxable under GST?
Supplies of all goods and services are taxable except alcoholic liquor for human consumption. Supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be taxable with effect from a future date. This date would be notified by the Government on the recommendations of the GST Council.
38. What is meant by Reverse Charge?
It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply.
39. Is the reverse charge mechanism applicable only to services?
No, reverse charge applies to supplies of both goods and services, as notified by the Government on the recommendations of the GST Council.
40. What will be the implications in case of receipt of supply from unregistered persons?
In case of receipt of supply from an unregistered person, the registered person who is receiving goods or services shall be liable to pay tax under reverse charge mechanism.
41. Can any person other than the supplier or recipient be liable to pay tax under GST?
Yes, the Central/State government can specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services.
42. What is the time limit for taking a Registration under GST?
A person should take a Registration, within thirty days from the date on which he becomes liable to registration.
A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business.
43. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST.
44. Whether a person having multiple business verticals in a state can obtain for different registrations?
A person having multiple business verticals in a State may obtain a separate registration for each business vertical.
45. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
A person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Sajeev.
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