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FAQ on Trasitional provisions

Goods and Services Tax - GST - By: - CA Akash Phophalia - Dated:- 29-7-2016 - Introduction Effective convergence from existing regime to the new regime is the call of an hour. In order to ensure happy acceptance of GST law by all the sectors government has come out with transitional provisions in the model draft GST law which are detailed in FAQ manner as under. FAQ s Q. 1 What will be the effect on Existing Officers if GST will come into existence? Ans. All the existing officers shall continue .....

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ct is valid for a period of six months. Q.4 Is the time of six period will be extended? Ans. Yes, the Central/State Govt. may extend the time period of six months. However, such extension could be done with the recommendation of the Council. Q.5 What procedure to be followed for registration after issue of provisional registration? Ans. Every assessee/person to whom provisional certificate of registration is issued, shall furnish such information as may be prescribed within the period specified. .....

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plication is cancelled? Ans. If the person to whom provisional registration certificate is issued files an application that it is liable to be registered under this act, then it shall be deemed that the certificate of registration have not been issued. Q.8 What will happen if the CENVAT Credit shown in return? Ans. If any registered person shows CENVAT Credit in return furnished by him under the earlier law, then he shall be entitled to take CENVAT Credit if amount of CENVAT Credit is admissible .....

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the amount of CENVAT Credit already availed of in respect of capital goods. Q.10 Whether CENVAT Credit available to person which are registered under this act but not registered under earlier laws? Ans. Yes, any person who is not liable to registered under earlier laws but liable to tax under this tax due to exempted goods become taxable and any other reason, shall be entitled to take CENVAT Credit of eligible duties and taxes paid in respect of inputs held in stock ,inputs contained in semi-fin .....

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r input tax Credit under this act. (iv) Invoice and other documents relating to payment of duty of inputs are in the possession of such person. (v) Such invoices and other documents were issued not earlier than twelve months immediately preceding the appointed day. Q.10B How the amount of CENVAT Credit is calculated? Ans. The amount of CENVAT Credit is calculated on the basis of Generally Accepted Accounting Principles. Q.10C What will happen if amount of CENVAT Credit is wrongly allowed? Ans. I .....

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Excise Act, 1978; (iv) The additional duty of excise leviable under section 3 of the Additional Duties of Excise Act,1957; (v) The National Calamity Contingent Duty leviable under section 136 of the Finance Act, 2001; (vi) The additional duty leviable under sub section (1) of section 3 of the Customs Tariff Act, 1975; (vii) The additional duty leviable under sub section (5) of section 3 of the Customs Tariff Act,1975; and (viii) The service tax leviable under section 66B of the Finance Act, 1994 .....

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eme? Ans. The amount payable by the taxable person is equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such switch over by debiting the input credit or in cash. Provided that after payment of such amount , the balance of input tax credit , if any lying in his credit ledger shall lapse. Q.17 What will happen if exempted goods are returned to the place of busin .....

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he appointed day? Ans. If any goods on which duty has been paid under the earlier law not being earlier than six months prior to the appointed day, are returned to the place of business within a period of six months from the appointed day, then there is no liability of tax arises on such goods. However, if such goods are returned after six months from the appointed day, then tax shall be payable by the taxable person. Q.19 What will happened if inputs were removed for job work and returned on or .....

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ime, and the goods are liable to tax, then the tax will be payable by the job worker. In order to avail of the benefit of this provision the job worker and the manufacturer have to declare the details of input held in stock Q.20 What will happen if semi-finished goods were removed for job work and returned on or after the appointed day? Ans. . If any good removed before the appointed day to the job worker for carrying out certain manufacturing processes, are returned to such factory on or after .....

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hed goods held in stock. Q.21 What will happen if finished goods were removed for carrying out certain processes and returned on or after the appointed day? Ans. . If any excisable goods removed from the factory for carrying out tests and other processes not amounting to manufacture before the appointed day , are returned to such factory on or after the appointed day but within six months from the appointed day then no tax shall be payable. The period of six months may be extended by the compete .....

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before the appointed day and the price of goods / services is revised downwards on or after the appointed day, then in this case the taxable person may issue a supplementary invoice or debit note within thirty days of such prices revision. Input credit - The taxable person shall be allowed to reduce his tax liability only if the recipient of the invoice or credit note has reduced its input credit corresponding to such reduction of tax liability. Q.23 Effect on pending refund claims? Ans. If any .....

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h the provisions of earlier law and if any amount of credit found to be admissible to the claimant shall be refunded to him in cash. If any amount of credit becomes recoverable as a result of appeal, revision, review or reference, the same will be recovered from such person. Q.25 How finalization of proceedings relating to output duty liability will be carried out? Ans. Every proceeding relating to output duty shall be disposed of in accordance with the earlier law and if any amount recoverable .....

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refunded. Q.27 How the amount recovered or refunded in pursuance to revision of returns be treated? Ans. If any return furnished under the earlier law is revised and as a result of such revision any amount is found to be recoverable or refundable from or to the taxable person, the same will be recovered or refunded. Q.28 What treatment will be done for long term construction/works contracts? Ans. The goods or services supplied on or after the appointed day in pursuance of a contract entered prio .....

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s? Ans. If supply of goods or services is made on or after the appointed day but a part consideration for such goods or services is already received before the appointed day and the duty and tax payable thereon has already been paid under the earlier law then no liability of tax arises on such goods or services. Q.31 Effect on credit distribution of service tax by Input Service Distributor? Ans. The input tax credit on account of any services received prior to the appointed day by an Input Servi .....

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registered taxable person under this act. (ii) Both the principal and agent declare the details of stock of goods lying with such agent (iii) The invoices for such goods had been issued not earlier than twelve months immediately preceding the appointed day. (iv) The principal has either reversed or not availed of the input tax credit in respect of such goods. Q.33 Whether CENVAT Credit is allowed for tax paid on capital goods lying with agents? Ans. Yes, Where any capital goods belonging to the .....

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