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The
assessment of drugs and formulations under GST would be on the basis of
transaction value at each level of supply with end to end ITC chain for
neutralizing the GST paid at the procurement level. |
In case of clearance of physician samples distributed free of cost, the ITC availed on the said samples has to be reversed in view of the provisions under Section 17(5)(h) of the CGST Act, 2017. No tax is payable on clearance of physician samples distributed free of cost as the value of supply is zero and no credit has been availed. |
In
such cases, the manufacturer may issue a credit note within the time
specified in sub-section (2) of section 34 of the CGST Act, 2017 subject to
the condition that the person returning the expired medicines reduces his
ITC. Subsequently, when the time expired goods are destroyed, the
manufacturer has to reverse his ITC on account of goods being destroyed.
Where the goods are returned after the time limit specified in section 34(2)
of the CGST Act, 2017, the registered person returning the goods shall issue
a tax invoice, as it is a supply within the meaning of Section 7 of the CGST
Act, 2017. |
GST
law does not have any special provision for loan and licensee units. Where
the contract are in the nature of performance of job-work, these units can
opt to follow the procedure laid down in section 143 of the CGST Act, 2017
i.e. the principal can send any inputs etc. to such units without payment of
tax and the principal can clear the goods from the premises of such units if
the principal declares these units as his additional place of business or
where such units are themselves registered under section 25 of CGST Act,
2017. |
The
clearances effected to the SEZ are zero rated supplies in terms of Section 16
of the IGST Act, 2017. Accordingly, the supplier can claim refund of IGST
paid on such supplies or clear the same under bond/ letter of undertaking and
claim refund of the unutilised ITC. |
The
SEZ unit located in a State is treated as a business vertical distinct from
other units located in the State outside the SEZ [first proviso to Rule 8 of
the CGST Rules, 2017 read with Section 25 of the CGST Act, 2017]. Hence,
separate registration is required to be obtained for the unit located in
SEZ. |
In
terms of second proviso to Rule 8 of the CGST Rules, 2017 read with Section
25 of the GST Act, 2017, every person being an Input Service Distributor has
to make a separate application for registration. |
In
terms of Rule 117(4) of the CGST Rules, 2017 (transitional provisions) read
with Section 140(3) of the CGST Act, 2017, a registered person who was not
registered under the existing law and who is not in possession of any
document evidencing payment of central excise duty in respect of the goods
held in stock, shall be allowed credit at the rate of sixty per cent on such
goods which attract central tax at the rate of nine per cent or more and
forty per cent for the other goods of the central tax applicable on supply of
such goods after 01st July 2017 and the said amount shall be credited in the
electronic credit ledger after the central tax payable on such supply has
been paid. In case where integrated tax is paid, the amount of ITC would be
at the rate of thirty per cent and twenty per cent respectively of integrtaed
tax. This facility is available for a maximum period of 6 months from the
appointed day (i.e. upto 31st December, 2017) or till the goods are sold out,
whichever is earlier. |
In
terms of the proviso to Section 140(3) of the CGST Act, 2017, the
manufacturer is not eligible to avail deemed credit in respect of
transitional stocks, for which duty paying document is not available. Such
credit is not available in case of SGST except where VAT was payable on the
basis of MRP. |
In
terms of the proviso to Section 140(3) of the CGST Act, 2017, the
manufacturer is not eligible to avail deemed credit in respect of
transitional stocks, for which duty paying document is not available. Such
credit is not available in case of SGST except where VAT was payable on the
basis of MRP. |
The
deemed credit in terms of Rule 117(4) of the CGST Rules, 2017 (transitional
provisions) read with Section 140(3) of the CGST Act, 2017 would be available
in respect of the goods, which were not unconditionally exempt from the whole
of the duty of excise specified in the First Schedule to the Central Excise
Tariff Act, 1985 or were not nil rated in the said Schedule. As the goods
purchased from tax free zones were exempted from duty payment under a
Notification issued under Section 5 of the Central Excise Act, 1944 and not
Nil rated in the First Schedule to the Central Excise Tariff Act, 1985, the
deemed credit would be available in respect of such goods held in stock on
the appointed day. |
In
terms of Section 9(4) of the CGST Act, 2017 read with Section 31(3) ibid, the
Registered Person procuring the taxable supplies from an Unregistered
Supplier has to raise invoice and pay GST on reverse charge basis in respect
of such supplies. |
Since
GST is a destination based consumption tax with seamless transfer of ITC
credit, no exemptions are accorded to supplies made by erstwhile tax free
zones. Accordingly, the goods cleared from erstwhile tax free zones would be
subjected to GST from the appointed day (01st July, 2017). |
If
the recipient fails to pay to the supplier the amount towards the value of
supply along with tax payable thereon within a period of one hundred and
eighty days from the date of issue of invoice by the supplier, the amount of
input tax credit availed proportionate to the amount of consideration not
paid would be added to his output tax liability along with interest thereon.
The ITC so reversed can be reclaimed by the recipient after payment of
consideration along with tax payable thereon subsequently. This provision is
not applicable in respect of deemed supplies made without consideration in
terms of Schedule I to the CGST Act, 2017. |
In
terms of Rule 46(b) of the CGST Rules, 2017 single or multiple series of
invoices can be raised by the Registered Person for the supplies made under
GST as long as such invoice numbers are unique for a financial year. |
In
terms of Rule 55(1)(c) of the CGST Rules, 2017 such movements have to be
effected under the cover of a delivery challan along with any other document
that may be prescribed in lieu of the e-way bill. |
In
terms of Section 15(3) of the CGST Act, 2017, the value of supply for
charging GST shall not include any discount which is given before or at the
time of the supply if such discount has been duly recorded in the invoice
issued in respect of such supply. The value of supply shall also not include
any discount which is given after the supply has been effected, if such
discountis established in terms of an agreement entered into at or before the
time of such supply and specifically linked to relevant invoices and ITC
attributable to such discount has been reversed by the recipient of the
supply. |
The
procedure for movement of transitional goods lying at the premises of
Contract Manufacturers/Loan Licencee is governed by the provisions under
Section 141(1), (2) & (3) of the CGST Act, 2017. |