FAQ's on GST

Composition Scheme

Ans. Renting is a service and supplier of service, except restaurant service, can opt for composition scheme if supply of service is upto 10% of total turnover or Rs.5 Lakh whichever is higher. Since Renting of service is more than the limit, you are not eligible for composition scheme.

Ans. No, Sub-section (2) of section 10 refers.


Ans. Circular No. 4/4/2017 - GST dated 07.07.2017 clarifies this. Old LUT/bond is valid till 31.07.2017, after which fresh LUT/Bond in the new format is required to be submitted.

Ans. Circular No. 4/4/2017 - GST dated 07.07.2017 clarifies this. Old LUT/bond is valid till 31.07.2017, after which fresh LUT/Bond in the new format is required to be submitted.

Ans. Yes, conditions and safeguards have been specified by Notification No. 16/2017- Central Tax dated 07.07.2017 and clarified in detail in Circular No. 4/4/2017 - GST dated 07.07.2017. The sum and substance of these documents is that the facility of Letter of Undertaking in place of a bond is available to a registered person who is either (a) a status holder as specified in the Foreign Trade Policy 2015-2020; or (b) who has received the due foreign inward remittances amounting to a minimum of10% of the export turnover, which should not be less than one crore rupees, in the preceding financial year. The person should not have been prosecuted for any offence under the Central Goods and Services Tax Act, 2017 (12 of 2017) or under any of the existing laws in a case where the amount of tax evaded exceeds two hundred and fifty lakh rupees.

Ans. The place of supply is outside India but as the supplier is located in India, it is a case of inter-State supply and subject to IGST. It will be zero rated if the sale proceeds are realized in convertible foreign exchange.

Ans. No.

Ans. Yes, The manufacturer would be liable to pay CGST and SGST.
The merchant-exporter has the option either to avail option of Bond/LUT or to pay IGST for export of such goods. There is no provision on the lines of Form H under the CST Act in the GST.

Ans. Circular No. 2/2/2017-GST dated04.07.2017 has clarified that an exporter wishing to export without payment of integrated tax may approach the jurisdictional AC/DC for acceptance of bond/LUT. Circular No. 4/4/2017-GST dated07.07.2017 has further clarified that the bond /LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter.

Ans. The Board has, vide Notification 16/2017- Central Tax dated 07.072017, specified the conditions and safeguards under which an exporter may file a LUT instead of a bond.

Ans. In terms of Para 6 of Circular No. 4/4/2017 dated 07.07.2017 exports are allowed under existing LUTs/Bonds till 31st July 2017. Exporters shall submit the LUTs/bond in the revised format latest by 31st July, 2017.

Ans. Condition i(b) in the said Notification means that: the registered person should have received the registered person should have received foreign inward remittance in the preceding financial year and the foreign inward remittance in the preceding financial year should not be less than one crore rupees. E.g. if a registered person has an export turnover in FY 2016-17 of Rs. 5 crores and has received foreign inward remittance of Rs. 5 crores in the same FY, then he shall satisfy Condition i(b), and shall be eligible for execution of LUT.

Invoice & Returns

Ans. He can issue unit-wise invoice also. But there should not be any duplication in numbering system.

Ans. Government is ready to launch this. However, a simpler return called GSTR-3B has also been devised due to the demands from the trade and industry for extension of time limit for filing of normal returns.

Ans. Yes, if the head office and branches are distinct persons as specified in section25(4), invoice is required to be issued and GST should also be paid.

Ans. For the purpose of GST law, credit note can be issued to reduce the taxable value or to reduce tax payable or to claim goods return, where the relevant invoice had already been issued and taxable value or tax charged in that tax invoice is in excess. Section 34 of CGST Act, 2017 may be referred to for further details.

Ans. Only registered persons are required to issue tax invoices as per provision of Section31 read with rules. An unregistered person may supply goods on ordinary commercial invoices and he cannot issue tax invoice.

Ans. Where free replacement is provided to the customers without consideration under warranty, no GST is chargeable on such replacement. In such cases goods may be sent on delivery challan as provided in rule55 of the CGST Rules, 2017.

Ans. You may issue a commercial invoice in such cases. However, if you are a registered person, you may issue a bill of supply for exempt supplies.

Ans. Invoice value would include value of all goods including those supplied free. In such cases, ITC is not required to be reversed.

Ans. As the goods are sent on returnable basis and no transfer of title is involved, it is not a supply of goods. If some element of service supply of goods. is involved, the same will be a taxable supply. The goods may be sent on delivery challan without invoice as it is not a supply of goods.

Ans. Challan for movement of goods without supply is to be issued in terms of Rule 55 of CGST Rules.

Ans. Mistakes can be corrected in subsequent returns to be filed through amendment Table (For example Table 11 of GSTR-1). Such mistakes can be corrected till the due date for filing of the return for the month of September subsequent to end of the year or filing of the annual return, whichever is earlier.

Source: CBIC
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