TMI BlogLATEST 50 SOLUTIONS TO TAXPAYERS PROBLEMS (SHORT FAQ) – dated 30-08-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... e departmental engineers or service provider whichever is earlier.) In case of reverse charge, Government Department will raise invoice accordingly (refer Section 13(3)]. Q. 3. In construction work, after raising of the Invoice, physical verification of the same is done by the Engineers of the Client and this work is delayed abnormally : in some instances the period taken goes up to two months, then how the Point of Service will be determined? Ans. Time of supply of services has been explained in Section 13 of CGST Act. The date of issue of Invoice will the time of supply. Q. 4. Is it practically feasible that Service Provider submits an Invoice after execution of work and the Principal Employer makes arrangement for payment of the bill after three months whereas as per point of service rule, the Point of Service stands for one month from the date of issue of raise invoice or services whichever is earlier and the Service Provider has to pay Service Tax @ 18% on value of work done although he has not received any payment from the client till date? Ans. Time of supply of services has been explained in Section 13 of CGST Act. The terms for payment do not decide t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be zero rated if the sale proceeds are realized in convertible foreign exchange. Q. 12. Under the new GST Act, the liability or payment of GST still with consignee or consignor? Ans. Reverse charge mechanism has been provided in GST law for GTA and the recipient of GTA service (he may be consignor or consignee) is required to pay GST. Notification No. 13/2017-Central Tax (Rate) may be referred to. Q. 13. Whether RCM is applicable on payments made for hiring of transport from unregistered GST traders? Ans. RCM under Section 9(3) is applicable for GTA and not for transport of goods. Where the vehicle is taken on rent or lease, it will be supply of service under Heading 9966 or 9973 and supply of service will be taxable under RCM under Section 9(4). Q. 14. We are also paying small payments like unloading charges, detention charges and under miscellaneous payments to petty contractors. Is GSTN under reverse charge applicable for these payments? Ans. If you are not registered, payment on reverse charge under Section 9(4) of CGST Act, 2017 is not required. That said, if such services availed fall within the domain of any service that is subject to reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to be registered, charge GST and provide you an invoice for your purchase. Q. 22. How will I know if his turnover is below ₹ 20 lakh and if he is exempt from GST and that he will not charge me any GST? Ans. Person having turnover over ₹ 20 lakh will take registration and registration certificate will be displayed at a prominent location along with GSTIN on the name board. If you suspect that he has not taken registration, a complaint can be made and suo motu registration will be given under Rule 16 of CGST Rules, 2017. Q. 23. Will all establishments display a certificate from government (displaying his turnover category) and their GST Registration No. which should appear on all his cash memos/bills? Ans. Yes. For details, Rule 18 of CGST Rules, 2017 may be referred to. Q. 24. Does a trader who has turnover of less than ₹ 20 lakh and are selling on e-commerce websites, have to register for GST? Ans. Yes, if such e-commerce operator is required to collect tax at source. Please see Section 24 of CGST Act, 2017. Q. 25. Can a trader whose account has been blocked by e-commerce portal apply for GST and still be eligible to sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 24 of CGST Act, 2017 may be referred. Q. 31. Please clarify the position of GST in case of licensed Tour Guides having registered office in one state but providing services Pan India? Ans. If the presence of tour guide is required in each State and he is supplying services from those States then registration requirement in each state would be there. Q. 32. If I already have a GSTIN, do I need to register separately as an Input Service Distributor? Ans. Yes, as per Section 24(viii) of the CGST Act, 2017, an Input Service Distributor is required to take separate registration under the Act. TRANSITION Q. 33. How the deemed credit of available stock and Work in Progress (WIP) to be availed by an Assessee? Ans. The provisions relating to deemed credit are contained in the proviso to Section 140(3) of the CGST Act, 2017 and Rule 117(4) of the CGST Rules, 2017. ITC at the rate of 60% is allowed where the Central Tax rate on goods is 9% or more; it is allowed at the rate of 40% in other cases. It is allowed only after the payment of applicable tax. It can be taken in the first six tax periods only. Deemed credit is allowed only to traders and not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TRAN-1. Ans. Period is given in the form itself i.e. 1-4-2015 to 30-6-2017. Q. 41. The tax paid in excess in one month is allowed to be adjusted against the tax liability due for the next month. What would be treatment of such excess payment of tax (service tax/VAT) for the last month prior to appointed date? Ans. Under transitional provisions all such excess ITC and Cash can be carried forward and GST can be paid from this amount. Q. 42. Will the facility of deemed credit of 60/40 percent of CGST under Rule 117(4) CGST Rules be available to both traders and manufacturers? Ans. The facility will be available to all persons other than manufacturers or supplier of services. Proviso to Section 140(3) of CGST Act, 2017 refers. Q. 43. There is a GST of 28% on a product of MRP ₹ 100 and the costing price of that product is ₹ 90.90/- (taxable value + 14.5% VAT) so the taxable value of that product will be 79.38 and if the GST of 28% will be added to the amount without adding any profit then it will be 79.38+22.22 (28% GST) and the total value of the product will be ₹ 101.60/- which is higher than MRP. So how it will be sold at the value ..... X X X X Extracts X X X X X X X X Extracts X X X X
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