GST EBOOKS | GST BOT | GST APPSUITE | GST TETAC | GST UCP | GST COMMUNITY | GST KNOWLEDGE FORUM | ICT ENABLED TAX DESK | CAREER | COLLABORATORS | CSR | CUSTOMERS | CONTACT US
As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed Rs.75 lakhs, would be eligible for paying GST under the composition scheme. |
In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½% (CGST) and ½% (SGST/UTGST). |
Yes,GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return. |
No. If a supplier chooses to avail of composition scheme, he shall not undertake inter-State supply. |
At present, the IGST rate is the sum of CGST and SGST/ UTGST rate.These rates have been notified and are available in public domain. |
No, the buyer cannot avail of the credit of tax paid by the supplier who is under the composition scheme as the person paying tax under composition scheme cannot issue a tax invoice and collect taxes on his supplies. |
GST on reverse charge mechanism is payable under section 9(4) of the CGST Act, 2017 only in case of purchases from unregistered suppliers. As the mine owner who is paying tax under composition scheme is registered, the recipients need not pay GST on reverse charge mechanism. |
As per
section 10(3) of the CGST Act, 2017, the option availed of by the small mine
owner/lease holder shall lapse with effect from the day on which his
aggregate turnover during a financial year exceeds Rs. 75 lakhs. For details
regarding other conditions, section 10 of the CGST Act, 2017 and the rules
framed thereunder may be referred to. |
Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4. |
Yes, the basic exemption limit of Rs. 20 lakhs (Rs.10 lakhs in the case of special category States) is applicable to the tiny and micro segment even in mining. However, a person engaged in making taxable supply and having aggregate annual turnover (more than Rs.20 lakhs in any State other than the special category States) would be liable to obtain registration under GST. The return has to be filed on monthly basis by regular taxable persons and on quarterly basis by the taxable persons registered under the composition scheme. |
A registered person receiving taxable goods or services from a supplier who is not registered, would be liable to pay GST under reverse charge mechanism. However, in terms of notification no. 8/2017-Central Tax (rate) dated 28th June, 2017, aggregate value of supplies of goods and/or service received by a registered person from any or all the suppliers, who is or are not registered, upto five thousand rupees in a day is exempt from tax under reverse charge mechanism. This exemption will not apply if the value exceeds Rs.5000/-. |
No,This
option is not available under GST Law. |
In such cases, the supplier may issue a credit note to the recipient in accordance with the provisions of section 34(1) of the CGST Act, 2017. |
Yes, it is a service being “tolerating an act” as per Schedule II of the CGST Act,2017 thus GST shall apply. |
As per the provisions of section 12(2) of the CGST Act, 2017 the time of supply of goods shall be the date of issue of invoice or the date of receipt of payment, whichever is earlier. Accordingly, GST would be payable on advance payment received prior to issuance of the invoice. |
Yes, as per section 31(3)(d) of the CGST Act, 2017 the supplier has to issue a “receipt voucher” for every advance received. |
Where against an advance the invoice is issued in the same tax period, the advance need not be shown separately in Form GSTR-1 but the specified details of invoice itself can be directly uploaded on the system. Details of all advances against which the invoices have not been issued till the end of the tax period shall have to be reported on a consolidated basis in Table 11 of Form GSTR-1. As and when the invoices against these advances are issued, they have to be declared in Form GSTR-1 and the adjustment of the tax paid on advances against the tax payable on the invoices uploaded in Form GSTR-1 shall have to be done in Table 11 of Form GSTR-1. |
Refund voucher has to be made for the full value of advance, including the amount of GST. |
Under GST gross amount of advance is to be reported and tax has to be paid. Advance can be adjusted in totality. While raising the invoice subsequent to receipt of advance, the tax payable will get reduced by the amount of tax paid on the advance and balance amount of advance may be adjusted against future supplies. |
The
provision of Sec. 17(5) (a) of the CGST Act, 2017 restricts credit on motor
vehicle for specified purposes listed therein. Further, in terms of the
provision of Section 2(76) of the CGST Act, 2017 the expression ‘motor
vehicle’ shall have the same meaning as assigned to it in Clause (28) of
Section 2 of the Motor Vehicle Act, 1988, which does not include the mining
equipment, viz., tippers, dumpers. Thus, as per present provisions, the GST
charged on purchase of earth moving machinery including tippers, dumpers used
for transportation of goods by a mining company will be allowed as input
credit. |
Yes, on royalty GST will apply under reverse charge mechanism. Further, such payment of GST under reverse charge mechanism would be eligible as ITC in the hands of the recipient of supply for payment of GST. |
Yes,GST paid on hiring of land, office, warehouse, processing unit, stock yards when these are used in the course or furtherance of business, would be allowed as ITC. |
As per provisions of Section 16(4) of the CGST Act, 2017 the ITC is not available after the due date of furnishing the return for the month of September of the next year or furnishing of the annual return, whichever is earlier. |
In
terms of the provision of Section 54(3) of the CGST Act, 2017 subject to
conditions, refund of unutilized input tax credit would be available in
respect of zero rated supply or where ITC has accumulated on account of rate
of tax on inputs being higher than the rate of tax on the output supply.
However, such refund of ITC would not be available if export duty is payable
on the goods so exported out of India. |
ITC on
any input service/ inputs used in the course or furtherance of business would
be available subject to restrictions and other conditions as per the
provisions of Chapter-V of the CGST Act, 2017. However, tax paid in respect
of canteen service providers shall not be available as credit. |
Gifts
not exceeding fifty thousand rupees in value in a financial year by an
employer to an employee shall not be treated as supply of goods or services
or both (as per Schedule 1 of the CGST Act, 2017). Free issue of coal based
on the wage agreement is not a gift. Therefore, free issue of coal in this
case will attract GST. |
In
case of an FOR contract for supply of mineral from the mine to the buyer, it
is a composite supply where the consideration will be inclusive of the
transportation cost. Therefore, GST on forward charge will be payable by the
supplier of the mineral and credit will be available to the buyer if
otherwise available. The supplier of the mineral will also pay tax on reverse
charge basis on the freight charged by the GTA and the credit of the same
will be available to the supplier of the mineral. In case of an ex-works contract of supply, where the GTA service has been booked by the supplier at the instance of the buyer and the service is billed by the GTA to the buyer and the minerals are billed by the supplier of the mineral to the buyer, then GTA on reverse charge shall be paid by the buyer who shall be entitled to take credit of the same. The tax on the mineral will be paid on forward charge by the supplier of the mineral and credit will be available to the buyer if otherwise available. |
In the
aforesaid example relating to FOR contract, the supply under the contract
shall be classified as ‘composite supply’ where there is a principal supply
and other supplies are naturally bundled and supplied in conjunction with
each other in the ordinary course of business. The GST rate of principal
supply shall be applicable in this case i.e. GST rate as applicable to the
mineral. |
Rigs,
capitalized in the books of accounts as capital goods are used in the course
or furtherance of business. Hence, it will be eligible as capital goods and
ITC will be available under GST. |
Yes,
ITC on expenses incurred in the course or furtherance of business shall be
available. |
No,Mining
companies will not be eligible for ITC on such activities even if used in
course or furtherance of business. In this connection, the provisions
contained in section 17(5) (c) of the CGST Act, 2017 refer. |
In
terms of the provision of Section 16(1) of the IGST Act, 2017 export of goods
is considered as zero rated supply. Further, in terms of the provision of
Section 16(3) of the IGST Act, 2017 a registered person may export goods (i)
without payment of IGST against bond/letter of undertaking and claim refund
of unutilised ITC, or (ii) on payment of IGST, utilising eligible ITC and
claim refund of such IGST. |
In
terms of Section 34(1) of the CGST Act, 2017 in case of return of goods on
which GST was paid at the time of supply, the supplier of such goods may
issue a credit note for the full value, including the amount of GST in favour
of the recipient, and will be entitled to reduce his output tax liability
subject to the condition that the recipient of such supply has not availed
credit of such GST and if availed, has reversed his ITC on the same. |
Returns
may be filed from the central office of the Company which are usually located
in areas with infrastructure required for filing such returns. |
TDS,
under section 51 (1) of the CGST Act, 2017 will apply to supplies made to
such agencies as may be mandated by the Government for TDS. As of now, this
section has not been notified and therefore TDS is not applicable on any
supplies. |
As per
rule 138 of the CGST Rules, 2017, till such time as final rules are issued,
the Government may, by notification, specify the documents that the person
in-charge of a conveyance shall carry while the goods are in movement or in
transit storage. As and when the new e-way bill rules are notified, the
person transporting the goods shall carry the said e-way bill generated from
the common portal along with the invoice (challan in the case of movement
other than by way of supply). |
In
terms of section 140 (7) of the CGST Act, 2017 the ISD will be able to
distribute the available credit even if the invoices are received after the
appointed day. |
In
cases where sales were covered by Forms C, F, H and I, the input tax credit
has remained in the account of the taxpayer because the taxpayer has availed
of the benefit of concessional rate/nil rate of tax on the sale/stock
transfer under CST Act. The benefit of concessional rate/nil rate is
available conditional upon production of the statutory forms. Therefore,
allowing migration of the credit that has accrued on account of sale/stock
transfer having been made on concessional rate/nil rate should be given only
on production of the statutory forms. Even otherwise, the taxpayer would have
claimed refund of this ITC and such refund would have been given only on
production of the statutory forms. It has been presumed that forms for
periods before April '15 would have either been presented or the State would
have recovered the additional tax payable on account of non-production of
statutory forms. Production of these forms is a statutory liability and the
taxpayers have already availed the benefit. |
No,Credit
of Education Cess and SH Education Cess cannot be carried forward. |
Balance
in PLA will not be under transition to GST since that has not been
appropriated to the Government account which will be determined post
completion of the pending assessment. The same can be claimed as refund under
the Central Excise Law. |
No,Credit of Clean Energy Cess cannot be carried forward on transition. |
Yes,Compensation
cess will be charged on supply of such stock. |
Such
supplies are in the nature of continuous supply as the invoices are raised
periodically. The individual dispatches may be covered under delivery
challans and invoice may be issued for the supplies made during a period as
per the contract. |
If tax rate is not determinable, the tax rate may be determined and paid on the amount of advance at 18%. |
ITC
will not be available as railway siding is not plant and machinery as defined
in section 17 of the CGST Act, 2017. |
Chapter
68 covers value added articles of sandstone etc. which are further worked
other than by way of roughly trimmed or merely cut into blocks or
slabs. |
HSD is
outside GST and therefore, input tax credit would not be admissible. |
Credit
will not be available if these goods are supplied for construction of an
immovable property. But if these are temporarily placed for protective
purposes, credit will be available. |
The
refund of ITC credit is not admissible in view of the second proviso to
section 54(3) of the CGST Act, 2017. |