Q 1: Which documents should be used in case of interstate
supply of goods until e-way bill rules are
notified?
Ans: The documents specified under
Rule 48 of the CGST Rules, 2017
may please be referred. Triplicate
copy of invoices for supply of goods
and duplicate copy of invoice for
supply of services may be used.
Q 2: If I use my credit card to pay utility bills, will I end up
paying GST twice; once for the service and second
time for the credit card bill?
Ans: No, GST is not leviable on the entire
credit card bill; it is charged only on
the fee/commission charged by the
credit card company.
Q 3: We currently transport material on delivery challan
and make a single bill at the end of the month. Can
the same be done under GST?
Ans: If on every instance you are making
a supply then an invoice needs to
be issued. For any other movement
of goods other than supply (as
specified in Rule 55 of CGST Rules,
2017), a delivery challan may be
issued.
Q 4: Will service charge, as charged by some restaurants,
be treated as consideration for a supply and hence
considered liable for tax?
Ans: There is no distinction between
goods or services under GST.
Service charge like any other supply
will be leviable to GST. It is also
clarified that service charge is not a
statutory levy. It is not levied by the
Government.
Q 5: What to do with stock lying with me on 1.07.2017.
Do I need to charge GST?
Ans: Yes, you need to charge GST but
you can use transition credit, if
available on the said goods.
Q 6: I am a small manufacturer who supplies cycle parts to
two manufacturing units in the same area. For every
supply, I generate an invoice and take 500 Rs. flat for
cartage and loading charges. What tax rate to be
charged on the cartage and loading expenses?
Ans: This will be a composite supply
where the principal supply (the
goods) cannot be supplied without
the cartage / unloading /
transportation expenses. Therefore,
the GST rate applicable will be the
same as that of the principal supply,
i.e, cycle parts, as provided under
Section 8 of the CGST Act, 2017.
Q 7: I run a restaurant where I serve alcohol and provide
food etc. How do I generate my invoices. What will
attract GST and what will attract VAT?
Ans: Since, you are providing both
taxable and non-taxable supply. You
will charge VAT on the non-taxable
supply (which is alcohol for human
consumption) and GST on all other
taxable supplies.
Q 8: In big bazaar, if I purchase some vegetables and one
bottle of coke where one of them is exempt and the
other is to be charged with 40% GST. Will I be charged
40% on the whole amount?
Ans: No, these are two independent
supplies at two different prices, they
will be charged at the GST rate
applicable to them even if they are
purchased on the same invoice.
Q 9: I am going to a jewelry shop and selling 10 gm gold
and purchasing a 20 gm set in return. GST will be
charged on 10 gm or 20 gm ?
Ans: The value to be charged on such
transaction will be the open market
value of the entire transaction as per
Rule 27(a) of the CGST Rules, 2017.
Therefore, GST be charged on entire
20 gm.
Q 10: As a composition dealer, will I have to issue a self
invoice if I purchase goods from an unregistered
person?
Ans: Yes, a composition dealer will issue a
self invoice as he is required to pay
GST. He will not be eligible for ITC
also.
Q 11: Can I use my CGST/SGST credit to set off my IGST
liability?
Ans: CGST credit can be first used to set
off CGST liability. Whatever is left
can be used to set off IGST liability.
It cannot be used to set off SGST
liability. Similarly, SGST credit can be
used to set off SGST and IGST
liability, in that order. It cannot be
used to set off CGST liability. Please
see Section 49 of the CGST Act,
2017.
Q 12: Can tax paid in one state be used as ITC by the same
firm in another state?
Ans: No, if a firm is registered in more
than one state, then each such
registration will be treated as a
separate registered person. Cross
utilization of credit available with
two different registered persons is
not allowed.
Q 13: Whether IGST would be levied twice on high seas sales?
First on high seas sales and second on custom clearance.
IGST paid on 1 available as ITC?
Ans: IGST shall be levied only once on
imports.
Q 14: Will Krishi Mandi Fee (imposed in U.P.) be waived off in GST?
Ans: GST does not concern such fee so GST does not affect it.
Q 15: Is E-Way Bill applicable from 1st July 2017
?
Ans: The present system for E-way Bill in
States to continue, till the E-Way Bill
procedures are finalized.
Q 16: Is there a sunset clause for Anti-Profiteering law?
Ans: Yes, the sunset clause for Antiprofiteering
Authority is of two years.
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