95 FAQS on GST Registration, Composition Scheme, Payment, Refund etc.

Article compiles FAQs on GST Registration, Composition Scheme, Casual Taxpayer / Non Resident Taxpayer, Reverse Charge, Input Tax Credit, ITC on Job Work, GST Payment, E-way Bill, GST on Agriculture, GST Refund, GST Audit and Other GST Issues.

tamp Duty

3. Vehicle Tax

4. Entertainment Tax

5. Road Tax

6. Excise on Liquor

7. Tax on Electricity

8. Entry and Toll Taxes

Q.2 How many types of Taxes are applicable in GST?

Ans: GST covers three types of taxes-

1. IGST– Applicable on interstate sale/ service and collected by Central Government

2. CGST– Applicable on intrastate sale/ service and collected by Central Government

3. SGST– Applicable o on intrastate sale/ service and collected by State Government

Q.3  What is the concept of “Destination Based Tax” under GST?

Ans. Destination based tax concept means the authority to collect tax will depend upon the place where the goods/services is consumed. This is also known as “Place of Supply”.

Q.4 What is the basic exemption limit under GST?

Ans: The basic exemption limit under GST is Rs. 20 Lac, therefore any person having turnover up to Rs. 20 Lac is not required to take GST registration. This exemption is “voluntary” so if any person does not want to take the benefit of the same then he may apply GST.

Q.5 How will export and import treated under GST?

Ans: Exports will be treated as zero rated supply and input tax credit will be available as refund to exporters. Imports, will be treated as interstate supply and IGST will be applicable on the same.

Destination based system will be followed as per the place where the goods is consumed.

Q.6 How many types of bills are raised in GST?

Ans: There are two types of bill raised under GST-

1. Tax Invoice– Issues by normal tax payer

2. Bill of Supply– Issued by Composition Tax payer

Q.7 What are the modes of payment of GST?

Ans: Payment of GST can be made through online made. Following online modes are available for payment-

1. Internet banking mode

2. Debit/credit card modes

3. Over the counter only through authorized modes and only up to Rs. 10000 per challan

4. NEFT/RTGS Mode

Q.8 Whether stock transfer between branches of same concern is taxable under GST?

Ans: Yes, stock transfer between branches of same concern is taxable and same is allowed as input tax credit to the branch receiving goods.

Q.9 What are the common rates under GST?

Ans: The GST council has finalized the four tier GST tax structure, which includes the following-

a. 5%

b. 12%

c. 18%

d. 28%

Q.10 Define the types of supplies under GST?

Ans: There are different types of supplies under GST-

i. Taxable Supply

ii. Exempt Supply

iii. Inter-state supply

iv. Intra State supply

v. Composite Supply

vi. Mixed Supply

vii. Zero Rated supply

GST Registration

Q.11 Which type of taxpayer is required to get compulsory registration under GST?

Ans: Following persons are required to get compulsory GST Registration-

1. Any person having turnover exceeding Rs. 20 Lac

2. Casual Taxpayer

3. Non Resident taxable person

4. Input Service Distributor

5. E-commerce Operator

6. Person selling goods through e-commerce operator

7. Person liable to pay tax under reverse charge

Q.12 Whether GST registration required renewal?

Ans: GST registration once issued, becomes permanent unless surrendered, cancelled or revoked and no renewal is required for the same.

Q.13 Is there any process of taking Centralized registration under GST?

Ans: No, there is no process of taking Centralized registration under GST, if a person is having place of business in different states, then separate registration is required to be taken for different states.

Q.14 In which cases advance tax need to be paid before taking GST registration?

Ans: In case of casual taxpayer and Nonresident persons, making application for GST registration, needs to pay advance tax equivalent to their estimated tax liability for the stipulated period of registration.

Q.15 Whether amendment after taking GST Registration is possible?

Ans: Yes, amendment in registration certificate is possible as per the process prescribed under the law and also depends upon the approval of proper officer.

Q.16 How amendment in registration filed be done?

Ans: Amendment in registration filed is divide in two parts-

a. Core fields– Any change in core fields require approval from proper office

b. Non-core fields– Amendment can be made by taxpayer himself without any approval of proper officer.

Q.17 If a person is supplying goods as well as providing services, then separate registration is required for both?

Ans: No, Single registration is sufficient on one PAN in one state for both goods and services.

Q.18 Any person selling exempt as well as taxable goods, which type of Invoice, it need to issue?

Ans: In this case, person can issue “Tax Invoice” and declare exempted goods separately in the same invoice. Bill of supply is not required to be issued separately for the exempted goods.

Composition Scheme

Q.19 What is composition scheme?

Ans: It is the scheme introduced under GST law for small businessman for lowering their burden of legal compliance. Under this scheme, assesse has to pay tax at a minimum rate based on its turnover.

Also the taxpayer will not be liable to take Input Tax credit under this scheme.

Q.20 Who is eligible for opting Composition scheme?

Ans: Any assesse having turnover up to Rs. 1.5 Crore can apply for opting Composition scheme.

Q.21 What are the tax rate structure of Composition dealer?

Ans: The tax rate structure of Composition dealer is as follows-

Nature of Business	CGST	SGST
Manufacturer/ Traders	0.5%	0.5%
Restaurants not serving alcohols	2.5%	2.5%

Q.22 Who are not eligible for opting Composition Scheme?

Ans: Following assesses are not liable for Composition scheme-

1. Service providers other than Restaurant

2. Business supplying goods through e commerce websites

3. Assesse supplying exempt supplies

4. Casual and nonresident taxpayer

5. Manufacture of ice cream, Tabaco and pan masala

Q.23 What is the validity of composition scheme?

Ans: The scheme is valid till the taxpayer satisfy the requirement of composition scheme, once the option excised need not to be renewed every year.

Q.24 Whether the composition scheme is optional or compulsory?

Ans: Composition scheme is optional and taxpayer can also registered as normal taxpayer.

Q.25 Can a registered person having multiple registration on the same PAN number is eligible to apply for composition scheme?

Ans: Yes, if the total turnover of all business does not exceed the specified limit of composition scheme.

Q.26 Can a registered person with multiple registration under same pan, can apply some business for Composition while others as normal taxpayer?

Ans: No, the taxpayer should be eligible either as Composition or as Normal taxpayer for all his business under same PAN.

Q.27 Can a composition taxpayer eligible to collect tax from customers?

Ans: No, Composition taxpayer cannot collect tax from customer, this amount is to be paid by the taxpayer himself.

Q.28 How tax Liability is determined in composite supply?

Ans: In case of composite supply, tax liability will be determined as per the principle supply. Rate of tax of principle supply will be taken for whole supply.

Casual Taxpayer / Non Resident Taxpayer

Q.29 Who is casual taxpayer under GST?

Ans: Casual Taxpayer is the person supplying goods or services occasionally in any taxable territory where he is not having place of business.

Q.30 Explain the term Non Resident Taxpayer?

Ans: Any person residing outside India and undertake transaction occasionally in India but does not possesses any fixed place of business in India, is known as ‘Non Resident Taxpayer”.

Q.31 For how much period the registration of casual taxpayer and nonresident is valid?

Ans: The certificate of registration for these assess will be valid for the period of ninety days starting from the date of registration.

Q.32 Is the above period extendable?

Ans: Yes, the above period can be extended by the proper officer, if requested by the taxpayer. The extended period cannot be more than ninety days.

Reverse Charge

Q.33 What is Reverse Charge?

Ans: Reverse Charge is a mechanism in which receiver of the goods/ services is liable to pay tax.

The system of taxation gets reversed and it is called reverse charge.

Q.34 In case of Reverse charge, how invoice is generated?

Ans: Self-invoice is being generated when purchased form unregistered dealers and tax is paid under Reverse charge mechanism.

Q.35 Is payment made under reverse charge, allowed as Input Tax Credit?

Ans: Amount paid under Reverse charge is allowed to be taken as input tax credit.

Q.36 Is payment of Reverse charge can be done though the available input tax credit?

Ans: No, payment of reverse charge is always made in cash and available input tax credit cannot be availed for its payment.

Q.37 While calculation the aggregate turnover, is the value of inward supply on which reverse charge is payable, also included?

Ans: No, aggregate turnover does not include the value of inward supply on which reverse charge is payable.

Q.38 Whether the Reverse Charge mechanism apply only to the service sector under GST?

Ans: No, Reverse Charge mechanism applies both to services as well as supply of goods. It’s not limited to service sector as in previous act.

Q.39 What is the threshold limit under RCM?

Ans: The RCM limit is Rs. 5000 per day in respect of supplies received form an unregistered dealers.

Input Tax Credit

Q.40 What are the requirements for availing Input tax Credit under GST?

Ans: For claiming Input tax Credit, following conditions need to be fulfilled-

1. Retaining GST Tax Invoice

2. Goods/ services must be received by the taxpayer

3. For claiming credit, GST return must be furnished (Credit can be availed only through filling return).

Q.41 How credits are utilized between CGST, SGST and IGST?

Ans: Tax Credits under GST are utilized in following manner-

1. CGST → CGST, IGST

2. SGST → SGST, IGST

3. IGST → IGST, CGST, SGST

Q.42 Whether Cross Utilization of credit between goods and services in allowed under GST?

Ans: Yes, taxpayer dealing both in goods and services, can cross utilize the credits available in the credit ledger for GST payments.

Q.43 What are the cases where ITC is not available?

Ans: In following cases ITC is not available-

1. Rent a cab Services

2. Life Insurance, Health Insurance,

3. Membership Fees paid for club, health and gym

4. Travel services

5. Works contract

6. Restaurant Services

7. Composition Scheme

8. Motor Vehicle purchase

9. Construction of immovable property on own account

Q.44 Whether Input Tax Credit available on Capital Goods?

Ans: Yes, Input tax credit available on capital goods and also in one installment.

Q.45 Is late fees, penalties, allowed to be paid through Input Tax Credit?

Ans: No, Input tax credit cannot be used to pay late fees and penalties, it always need to be paid in cash.

ITC on Job Work

Q.46 Whether Input Tax Credit available to the principal on goods sent on job work?

Ans: Yes, input tax credit can be claimed on goods sent on job work.

Q.47 What is the time limit of receiving goods, sent on job work and consequences of not receiving in the given time frame?

Ans: Time period of 180 days is given for receiving goods back from job work. In case of goods not received back within time, then principal has to reverse the credit claimedon the same with interest.

Q.48 What is the time limit in case of capital goods sent on job work?

Ans: In case of capital goods time limit is 2 years.

Q.49 In case goods are received in installment against one invoice, when can be the input tax credit be claimed?

Ans: In case goods are received in installment, Input tax credit can be claimed in last installment.

GST Payment

Q.50 What is taxable event in GST?

Ans: Supply of goods and supply of services is considered as taxable event in GST and accordingly tax is applicable on it.

Q.51 What is E- Ledger in GST?

Ans: E- Ledger is the form of GST passbook containing following ledgers-

1. Electronic Cash Ledger- It contains the details of cash deposited to government by assesse

2. Electronic Credit ledger- It contains the details of Input tax credit available to the assess

Q.52 What is E-Challan and for how many days it is valid?

Ans: E-challan is generated through GST portal for payment, either through online or offline. It is valid for the period of seven days from the date of generation.

Q.53 In case payment of GST made through Cheque, what will be the date of payment?

Ans: Date of realization will be considered as date of payment in case of payment through cheques/ DD.

E-way Bill

Q.54 What is E-way bill?

Ans: E-way bill is an electronic billing system on movement of goods for value exceeding Rs. 50,000. On generating e-way bill and EBN (eway bill number) is allocated and available to supplier, transporter and receiver.

Q.55 What type of supply is considered for issuing e-way bill?

Ans: Following supplies are considered for generating e-way bill-

1. Supply made for consideration in normal course of business

2. Supply made for consideration without normal course of business

3. Supply made without consideration like sale return, barter and exchange.

Q.56 In which cases e way bill is compulsory even if the value is less than Rs. 50000?

Ans: There are two circumstances in which e way bill is compulsory-

1. Inter-state movement of goods form principal to job worker

2. Interstate transport of handcrafted goods by any dealer who is exempted form GST

Q.57 In what circumstances E-way bill is not required?

Ans: In following circumstances E-way bill is not required-

1. Goods are transported through non- motor vehicle

2. Goods are transported under Custom provisions

3. Goods are transported within a state for less than 10 Km

4. Specified Goods transported like jewelry, personal use, etc as mentioned in the negative list of e-way bill

5. Transport of goods in specified areas

Q.58 Whether e-way bill can be generated voluntarily in case value of goods is less than Rs. 50000

Ans: Yes, E-way can be generated voluntarily for value less than Rs. 50000. The bill will be generated by following the same rules as if the bill is created for more than Rs. 50000.

Q.59 Is it possible to cancel the generated e-way bill?

Ans: Yes, e-way bill generated can be cancelled though sms or electronically through GST website.

Q.60 What is the validity of e-way bill?

Ans: Validity of e-way bill depends upon the distance where the goods is being transported. The period of validity is as below-

Distance	Validity Period
Less than 100 km	1 day
For every 100 km or part thereof	1 addition day for every 100 km

Q.61 Who is responsible to generate E-way bill?

Ans: E-way bill can be generated by following persons-

1. Every registered person who transport goods from one place to another

2. Transporter of goods in case bill is not generated by the transporter

3. Unregistered person at his own option.

Q.62 While preparing E-way bill, if the person is not registered then what value to be entered in GSTN column?

Ans: In case the person is not registered then URP (Unregistered person) is to be entered in GSTN column and the system will accept the same and e-way bill will be created.

Q.63 Is it possible to modify the generated E-way bill?

Ans: The e –way bill once generated cannot be modified, only updating can be done in Part-b. If any wrong information is feeded in the bill the bill can be cancelled within 24 hours of its generation and fresh bill can be generated again.

Q.64 E-way bill is divided in how many parts?

Ans: E-way bill is generated in two parts-

Part A- It is to be filled at the time of generation of e-way bill

Part B- It includes the details of vehicle

Q.65  What are the modes through which e-way bill is generated?

Ans: E-way bill can be generated though following modes-

1. Through web GST portal

2. Through SMS

3. Using Android app for E-way bill

4. Using bulk generation facility

5. Through GST Suvidha providers

Q.66 Whether Part A is sufficient for e-way bill?

Ans: E-way is not completed till Part-B is not filled. It is the basic document as it contains the details of vehicle used for transport.

Q.67 In case Invoice is signed digitally, how the “Original” and “Duplicate” will be considered?

Ans: In case of digitally signed invoice, requirement of issuing “Original” and “Duplicate” copy is not required, digital signed invoice will be retained by both supplier and receiver.

Q.68 Is e-way bill applicable on composition dealers?

Ans:  Yes, Composition taxpayer is also liable for e-way bill

GST on Agriculture

Q.69 Is GST applicable on agriculture?

Ans: GST law has exempted only the small agriculturist operating under their own names. Therefore any person operating under the name of any company LLP or as any other entity is required to get GST registration if they crosses the threshold limit as mentioned in GST.

Q.70 What is the rate of GST on Seeds and Fertilizers?

Ans: Seeds are the basic for farming, so no GST is applicable on seeds, organic fertilizer without any brand name and not put up in any unit is rated nil under GST while others are taxed at the rate of 12%.

Q.71 Whether GST applicable on Commission agent supplying Agriculture produce?

Ans: No, they are exempt from GST as they are supplying agriculture produce.

GST Refund

Q.72 State the cases where refund is granted under GST?

Ans: Refunds are granted under following cases-

1. Balance in electronic cash ledger as claimed in returns

2. Unutilized input tax credit related to Zero rated sales

3. Accumulated credit where tax rate is high on input as compared to output

4. Any taxes paid by agencies of United Nations

Q.73 What is the time limit of claiming refunds?

Ans: Refunds can be claimed before expiry of two years from the relevant date.

Q.74 What is the threshold limit of refunds?

Ans: Threshold limit for refunds is Rs. 1000, no refund will be granted below Rs. 1000

Q.75 Whether the refund arising in previous law will be granted under GST?

Ans: There is no such provision under GST for granting refund arising under previous law. Refund arising under previous law will be granted as per the provision of previous law only.

AUDIT

Q.76 What is the threshold limit for audit?

Ans: Audit are required to be conducted when the turnover exceeds Rs. 2 Crore.

Q.77 What is the time period for keeping the accounting records under GST?

Ans: GST law requires every taxable person to keep their accounting records for the period of 72 months from the date of filling annual return for a particular financial year.

Q.78 Who is authorized to do audit when turnover exceeds Rs. 2 Cr.

Ans: Audit under GST can be conducted by the following persons-

(a) Chartered Accountant (CA)

(b) Cost and Management Accountant (CMA)

Others

Q.79 Whether dealing in shares and securities, taxable under GST?

Ans: Securities are precisely excluded from the definition of services prescribed under GST, so no GST is applicable on dealing in securities.

Q.80 What will be the treatment of supplies made to Export Oriented Units (EOU) and SEZ?

Ans: Any supply made to Export Oriented Units (EOU) will be treated as Normal supplywhile supply made to any SEZ units will be treated as Zero Rated supply.

Q.81 In case of export made without LUT, how refund will be claimed?

Ans: In case export is made without LUT, IGST is to be paid through LTC and the LTC and shipping bill will be sufficient for claiming refund.

Q.82 How will tax liability will be determined in case of Mixed supply?

Ans: In case of mixed supply, supply attracting highest rate of tax will be taken and whole supply will be taxed for the same rate.

Q.83 Who is e-commerce operator?

Ans: E-commerce operator means a person engaged directly or indirectly in operating, managing an electronic platform which is engaged in smoothing supply of goods and services.

Q.84 Who is liable to collect tax at source?

Ans: Every e-commerce operator is required to collect tax at source where consideration is received for supply.

Q.85 How TCS can be claimed by supplier?

Ans: The TCS so deducted by the operator will be reflected in the cash ledger of supplier and this amount can be used by the supplier for discharging the tax liability.

Q.86 What is the time limit for submitting statement for TCS?

Ans: Statement is to be submitted within 10 days after end of every month.

Q.87 Whether job worker is required to get GST registration?

Ans. Job work is considered as service, so it is liable for registration if the turnover exceed the threshold limit.

Q.88 Explain the two cases where principal can supply goods directly from the premises of Job Worker?

Ans: The two cases are as below-

1. Job worker is the registered taxable person under GST

2. Principal is engaged in supply of such goods as notified by the GST commissioner

Q.89 Is banks required to get separate registration for each ATM place under GST?

Ans: No, ATM is not considered as separate place of business under GST, therefore separate place registration for each ATM is not required.

Q.90 What do you mean by remission of Tax?

Ans: Remission of tax means, reliving the taxpayer for the obligation of paying tax on such goods which are being lost or destroyed by any natural calamity. It has some conditions which needs to be fulfilled by taxpayer.

Q.91 Whether remission of tax required “supply of goods”?

Ans: Remission of tax is allowed only on the “Taxable event”, so supply of goods is the basic condition. Goods lost or destroyed before supply does not come under the ambit of remission.

Q.92 Whether Slump Sale is liable under GST?

Ans: Yes, it will be treated as normal sale and accordingly GST will applied.

Q.93 Who is defined Input Service Distributor (ISD) under GST?

Ans: ISD is and office means for receiving tax invoice for input services and further distributing the same on proportionate basis to the supplying units.

Q.94 In case of continuous supply of services, what will be the time limit for issue of Invoice?

Ans: In case of continuous supply of goods, Invoice will be raised as under-

1. If succession statement of accounts are prepared- At the time each such statement is received

2. Other cases- When the payment is received.

Q.95 Is Threshold limit applies on registration of ISD?

Ans: No, It is considered under the definition of compulsory registration without applying threshold limits.

Courtesy: Preeti Khandelwal, CA - Written in Tax Guru.