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Frequently Asked Questions (FAQ) – GST Station

Frequently Asked Questions (FAQ)

    This is where you should answer the most common questions prospective customers might have. It’s a good idea to cover things like your return policy, product warranty info, shipping and returns, etc. Check out the examples below.

    Question 1.Why GST ?


    • Create a Common National Market.
    • Reduce barrier between inter-state trader.
    • Imbalance of indirect taxation.

    Question 2.What is Goods and Services Tax (GST)?


    It is a destination based tax on consumption of goods and services. It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as set off. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

    Question 3.What exactly is the concept of destination based tax on consumption?


    The tax would accrue to the taxing authority which has jurisdiction over the place of consumption which is also termed as place of supply.

    Question 4.Are all goods and services taxable under GST?


    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.

    -Aggregate Turnover Sec-26 (CGST ACT):

    “Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same. Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;-PAN INDIA 10/20 LAKHS.

    -Integrated Goods and Service Tax (IGST):

    (a)Where a supply is received at a place of business for which the registration has been obtained, the location
    of such place of business;
    (b)Where a supply is received at a place other than the place of business for which registration has been
    obtained (a fixed establishment elsewhere), the location of such fixed establishment;
    (c)Where a supply is received at more than one establishment, whether the place of business or fixed
    establishment, the location of the establishment most directly concerned with the receipt of the supply; and
    (d)In absence of such places, the location of the usual place of residence
    of the recipient;

    Question 5.What is time of supply?


    The time of supply fixes the point when the liability to charge GST arises. It also indicates when a supply is deemed to have been made. The CGST/SGST Act provides separate time of supply for goods and services.


    Section 2(11) deals with ‘Import of services’, which means the supply of any service, where-
    (i) the supplier of service is located outside India;
    (ii) the recipient of service is located in India; and
    (iii) the place of supply of service is in India;
    Let’s discuss the related aspects of ‘import of services’.

    -Input Tax Credit

    • Inputs, Capital Goods and Input Services
    • Centralised procurement system –ISD- Credit to which location?
    • Restrictions:
    • Motor vehicles
    • Personal supplies – food, beauty treatment, health services
    • Membership of clubs etc
    • rent-a-cab, life insurance, health insurance
    • works contract services when supplied for construction of immovable
    • Composition purchases
    • No reversal for free supply of services


    ITC Rules for Capital Goods under GST
    Below are the high level rules for determination of Input Tax Credit (ITC) w.r.t.
    Capital Goods and reversal if any:
    A. Credit of Input Tax will not be available on the following:
    i. Capital Goods used exclusively for effecting exempt supplies
    ii. Capital Goods used exclusively for non-business (personal) activity
    B. Credit of Input Tax will be available in totality where Capital Goods have been used for effecting taxable
    supplies and business activity without any restrictions
    C. Amount of input tax referred in above points A and B must be indicated in Form GSTR-2 and however only point B
    will be credited to electronic credit ledger.
    D. Where Capital Goods is used commonly for exempt and taxable supplies and/or business and non-business activity
    the credit of input tax shall be calculated in the following manner:
    Such amount shall be credited to Electronic Credit Ledger.
    Useful life of such capital good shall be taken to be 5 years from the date of purchase.
    Now the total amount of input tax credited to Electronic Credit Ledger w.r.t. whole useful life such common capital good shall be distributed over the useful life.
    4. The above amount shall be calculated for all such common capital goods for every tax period namely a month.
    5. The amount of credit to be added to output tax liability attributable to exempt supplies out of input tax for
    common use of capital good shall be,
    6. Remaining amount after deducting credit attributable towards exempt supplies will be allowed as ITC.
    7. All the above calculations must be done separately for:
    -Central tax

    -State Tax

    -Union Territory Tax

    -Integrated Tax

    E. Where a capital good which was earlier used or intended to be exclusively used for:
    Non- business purpose.
    Effecting exempt supplies.
    Later to be used commonly for:
    Business and non-business purpose.
    Effecting taxable and exempt supplies.
    Input tax to be credited to electronic credit ledger would be:
    = Input Tax – 5% of Input tax for every quarter or part there.

    Question 6.What is TDS?


    TDS stands for Tax Deducted at Source (TDS). As per section 51, this provision is meant for Government and
    Government undertakings and other notified entities making contractual payments where total value of such supply under a contract exceeds Rs. 2.5 Lakhs to suppliers. While making any payments under such contracts, the concerned Government/authority shall deduct 2% of the total payment made and remit it into the appropriate GST account.18/9/17 notified.

    Question 7.Is cross border service, provided by an indian branch to an offshore branch/head office, zero rated under GST?


    No. Since in this case, the supplier of service and the recipient of service are merely establishments of a distinct person as per Explanation 1 of section 8 of IGST Act, the service does not satisfy the defination of export of service as provided in section 2(6) of the IGST Act. Therefore, such services cannot be zero rated under GST.

    Question 8.Would an ISD require to obtain registration for each state?


    Input Service Distributor is required to obtain compulsory registration under GST in a state or Union territory from where he makes a taxable supply of goods or services or both. Thus, he is not required to obtain registration in the State/Union territory to where he is distributing the credit.

    Question 9.Does a registered person need to show supplies made through e-commerce portals in his/her GSTR-1 in Part 4-C or Part 4-A?


    Section 52 of the CGST Act, 2017 has not yet been notified. Till the section is notified , all supplies made through e-commerce portal need to be shown in Part 4-A of GSTR-1. These supplies also need to be shown Part 3.1 of GSTR-3B.

    Question 10.Does the GST law disallow a transporter to transport goods without obtaining the consignee’s GSTIN?


    No such requirement under GST law

    Question 11.Can GST be4 charged over and above MRP?


    MRP is inclusive of all taxes. No amount of GST can be charged over and above MRP. Amount of GST, however, is required to be shown separately on tax invoice.

    Question 12.What is the last date for filing TRAN-1? What is the last date for revising it?


    The last date for filing TRAN-1 is 31.10.2017. Those who have already field, can exercise a one-time option of revision till 31.10.2017.

    Question 13.How will imports be taxed under GST?


    The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.

    Question 14.What are the major features of the proposed returns filing procedures under GST?


    The major features of the proposed returns filing procedures under GST are as follows:

    1.Common return would serve the purpose of both Centre and State Government.
    2.There are eight forms provided for in the GST business processes for filing for returns. Most of the average tax payers would be using only four forms for filing their returns. These are return for supplies, return for purchases, monthly returns and annual return.
    3.Small taxpayers: Small taxpayers who have opted composition scheme shall have to file return on quarterly basis.
    Filing of returns shall be completely online. All taxes can also be paid online.

    Question 15.Will cross utilization of credits between goods and services be allowed under GST regime?


    Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.

    Question 16.Due individual freelancers working for US client require GST Registration?


    Yes, as it is a interstate supply, registration is compulsory under section 24(i) of CGST Act, 2017.

    Question 17.Service provided, GST on which is to be paid by receiver under RCM in which column this amount to be reported in GSTR-3B?


    You are not required to report them GST-3B, those supply will shown by receiver of the supply.

    Question 18.I want to change my business address in GST registration. How do I do that?


    Pls refer Rule no. 19(1) of CGST Rules, 2017. It can be done by submitting information in FORM GST REG-14 electronically.

    Question 19.GST rate on school fee/tuition fee?


    Services provided by a educational institution to its student faculty and staff attract Nil rate of GST.

    Question 20.I have missed a purchase bill while filling GSTR-3B for the month of August. Please suggest what should I do?


    It can be rectified in the next month’s return. Section 37(3) and 38(5) of CGST Act refers.

    Question 21.I have paid 5% GST on reverse charge basis for receipt of GTA services. Can I claim credit for GST paid?


    Such credit can be claimed in the same month and can be used to discharge the output tax liability of the same month.

    Question 22.What is HS code and GST rate of Sangari?


    Sangari is a dried vegetable and falls under HS code 0712. It attracts Nil GST.

    Question 23.What is the GST rate on “De-oiled rice bran” produced during extraction of vegetable oil from ‘Rice Bran”?


    HS code 2306 includes de-oiled rice bran obtained as a residue after the extraction of oil from the rice bran. De-oiled bran supplied for use as cattle feed attracts Nil GST. De-oiled rice bran for other uses attracts 5% GST.

    Question 24.What is the GST rate of rice bran?


    Rice bran falls under HS code 2302. Rice bran for use as aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed attracts Nil GST. Rice bran for other uses attracts 5% GST.

    Question 25.What is the GST rate on seeds of wheat, paddy for sowing purpose?


    The GST rate on seeds of wheat, paddy for sowing purpose is Nil.

    Question 26.What is HS code and GST rate of Methi Patha (dry) and Dhaniya Patha (dry)?


    Methi Patha (dry) i.e. dry fenugreek leaves and Dhaniya Patha (dry) i.e. dry coriander leaves are spices falling under HS code 0910 and attraqct 5% GST.

    Question 27.What is the HS code and GST rate on Peanut Chikki, Rajgira Chikki, Seasame Chikki, and shakkarpara?


    As per HS explanatory notes, HS code 1704 covers most of the sugar preparations which are marketed ina solid or semi-solid form, generally suitable for immediate consumption and collectively referred to as sweetmeats , confectionery or candies. Therefore, Peanut Chikki, Rajgara Chikki, Sesame Chikki and shakkarpara will fall under HS code 1704 and attract 18% GST.

    Question 28.What is the GST rate on sugar cane seeds and sugar cane as such?


    Sugar cane, fresh or chilled including that for sowing, falls under HS code 1212 and attracts nil rate of GST.

    Question 29.What is the HS code and GST rate for tamarind kernel?


    In FAQs published on 03.08.2017 in leading dailies, it was clarified that tamarind kernel falls under HS code 1207 and attracts Nil GST. It is, however, clarified that tamarind kernel of seeds quality attracts Nil GST, whereas tamarind kernel of other than seed quality attracts 5% GST.

    Question 30.What is the HS code and GST rate on tumeric?


    Fresh Tumeric, other than in processed form, falls under 0910 and attracts Nil GST. Tumeric dried or ground attracts 5% GST.

    Question 31.What is HS code and GST rate for resin coated sand?


    HS code 3824 covers prepared binders for foundry moulds or cores; chemival products and preparations of the chemical or allied industries(including those consisting of mixtures of natural products). thus, resin coasted sand falls under HS code 3824 and attracts 18% GST.

    Question 32.What is the GST tax rate on “stitched Sal Leaf plate” used as plate for eating?


    Articles of plating material including stitched Sal leaf plates fall under HS code 4602 and attract 12% GST.

    Question 33.What is the GST tax rate on ropes/baskets made up of Sabai Grass?


    Articles of plaiting material, including baskets, fall under HS code 4602 and attracts 12% GST.

    Question 34.Am I eligible to receive the refund of IGST paid on export of goods if I have filed GSTR-3B?


    Yes, you are eligible for Refund of Integrated Tax on account of Export of goods (with payment of tax) if you meet the following conditions:

    • Filed GSTR-1, providing Export details in Table 6A of GSTR-1 along with Shipping bill details having Integrated Tax levied.

    • Filed GSTR-3B of the relevant tax period for which refund is to be paid.

    Question 35.How can I claim refund on account of Export of Goods (with Payment of Integrated Tax)? When the refund will be processed?


    1. Once you file GSTR-1 and provide Export details (Table 6A) along with Shipping bill details having Integrated Tax levied and also file GSTR-3B of the relevant tax period for which refund has to be paid, you are eligible to receive refund on account of the export of goods made on payment of Integrated Tax.

    2. GST Portal shares the export data declared under GSTR1 along with a validation that GSTR3B has been filed for the relevant tax period with ICEGATE. Customs System validates the GSTR 01 data with their Shipping Bill and EGM data and process the refund.

    3. The taxpayer is not required to file separate refund application in this case and Shipping Bill itself shall be treated as refund application.

    4. Once the refund payment will be credited to the account of the taxpayers, the ICEGATE system shall share the payment information with the GST Portal and the GST Portal in turn shall share the information through SMS and e-mail with the taxpayers.

    Question 36.Whether GSTR-2 and GSTR-3 need to be filed for claiming the refund?


    If the tax payer has filed GSTR-1 and GSTR-3B, then GSTR-2 and GSTR-3 are not required to be filed for claiming refund.

    Question 37.What is Table 6A of FORM GSTR-1?


    Table 6A of FORM GSTR1 is a table of GSTR-1 – Outward Supplies Statement of the Supplier, which an exporter desiring refund of taxes paid on exports or ITC related to exports is required to furnish on the GST portal. He has to declare the details of export invoices in this table.

    Question 38.Who needs to file Table 6A of FORM GSTR-1?


    Every registered taxable person, other than an input service distributor/compounding taxpayer/TDS Deductor/TCS Collector, who wants to claim refund on taxes paid on exports can file Table 6A of FORM GSTR1 electronically on the GST Portal.

    Question 39. Where can I file Table 6A of FORM GSTR-1?


    Table 6A of FORM GSTR1 can be filed from the returns section of the GST Portal. In the post login mode, you can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, Table 6A of FORM GSTR1 in the given period will be displayed. Please click prepare online button to fill in the details.

    Question 40.How can I get my IGST refund where my commercial invoices data of Shipping Bills are not matched with GST invoice data of GSTR1/Table 6A of GSTR-1?


    You have to modify your invoice declared under Table 6A of GSTR 1 in Table 9A of GSTR-1 of the subsequent tax period. GST System will revalidate and sent it to Customs for further processing.