TMI BlogLevy of and Exemption from TaxX X X X Extracts X X X X X X X X Extracts X X X X ..... GST is supply of goods or services or both. CGST and SGST/ UTGST will be levied on intra-State supplies. IGST will be levied on inter-State supplies. Q 3. Whether supplies made without consideration will also come within the purview of supply under GST? Ans. Yes, but only those activities which are specified in Schedule I to the CGST Act / SGST Act. The said provision has been adopted in IGST Act as well as in UTGST Act also. In cases where the inputs/ capital goods sent for job work are not returned with in the specified time limit, the supplies made by the principal to job worker will also be deemed to be a supply. Q 4. Will activities of charitable institutions be taxable under GST? Ans. Services of charitable ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly be priced and sold separately. Q 7. What is the treatment of composite supply and mixed supply under GST? Ans. Composite supply shall be treated as supply of the principal supply. Mixed supply would be treated as supply of that particular goods or services which attracts the highest rate of tax. Q 8. Are all goods and services taxable under GST? Ans. Supplies of all goods and services are taxable except alcoholic liquor for human consumption. Supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be taxable with effect from a future date. This date would be notified by the Government on the recommendations of the GST Council. Q 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specify categories of services the tax on which shall be paid by the electronic commerce operator, if such services are supplied through it and all the provisions of the Act shall apply to such electronic commerce operator as if he is the person liable to pay tax in relation to supply of such services. Notification No. 17/2017-Central Tax (rate) dated 28.06.2017 and Notification No. 14/2017-Integrated Tax (Rate) dated 28.06.2017 have been issued under the CGST Act and the IGST Act respectively in this regard. The following categories of services have been notified for the purpose: a. services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle; b. services by way of providing accommodation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ates are under one Act, and same rate would be applicable in the other Act also. So, effectively, the composition rates (combined rate under CGST and SGST/UTGST) are 1%, 2% and 5% for normal supplier (trader), manufacturer and restaurant service respectively. Q 15. A person availing composition scheme during a financial year crosses the turnover of ₹ 1 Crore during the course of the year i.e. say he crosses the turnover of ₹ 1 Crore in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31 st March? Ans. No. The option availed shall lapse from the day on which his aggregate turnover during the financial year exceeds ₹ 1 Crore. Q 16. Will a taxable pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eam, Pan Masala and Tobacco products; (vi) a casual taxable person and a non-resident taxable person. Q 19. Can the registered person under composition scheme claim input tax credit? Ans. No, registered person under composition scheme is not eligible to claim input tax credit. Q 20. Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit? Ans. No, customer who buys goods from registered person who is under composition scheme is not eligible for composition input tax credit because a composition scheme supplier cannot issue a tax invoice. Q 21. Can composition tax be collected from customers? Ans. No, the registered person under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther the Government can exempt, under circumstances of an exceptional nature, by special order any goods or services or both. It has also been provided in the SGST Act and UTGST Act that any exemption granted under CGST Act shall be deemed to be exemption under the said Act. Q 25. When exemption from whole of tax on goods or services or both has been granted absolutely, can a person pay tax? Ans. No. Furthermore, if the goods are partly exempted, the person supplying exempted goods or services or both shall not collect the tax in excess of the effective rate. - Manuals - Ready reckoner - Law and practice - Reference Guide - Quick Commentary Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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