FAQs

Q1. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?

Ans. New registration would be required as partnership firm would have new PAN.

Q2. Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?

Ans. If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.

Q3. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?

Ans. A supplier of service will have to register at the location from where he is supplying services.

Q4. Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?

Ans. Exemption from registration has been provided to such suppliers who are making only those supplies on which recipient is liable to discharge GST under RCM.

Q5. When is registration in other state required? Will giving service from Nasik to other state require registration in other state?

Ans. If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.

Q6. I have enrolled in GST but I forgot to enter SAC codes. What should I do? The status is migrated.

Ans. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.

Q7. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds ₹20 lacs?

Ans. A person dealing with 100% exempted supply is not liable to register irrespective of turnover.

Q8. If I register voluntarily though turnover is less than 20 Lakhs, am I required to pay tax from 1st supply I make post registration?

Ans. Yes, you would be treated as a normal taxable person.

Q9. Is separate registration required for trading and manufacturing by same entity in one state?

Ans. There will be only one registration per State for all activities. But, you have the option to be registered as a separate business vertical.

Q10. How long can I wait to register in GST ?

Ans. An unregistered person has 30 days to complete its registration formalities from its date of liability to obtain registration.

Q11. If I am not an existing taxpayer and wish to newly register under GST, when can I do so?

Ans.  You would be able to apply for new registration at the GST Portal gst.gov.in

Q12. My all outward supplies are export services. In this case is it compulsory to register under GST?

Ans. Yes. Since, exports are zero rated, one needs to register for GST to claim refunds.

Q1. Suppose I am in composition scheme in GST. If I purchase goods from unregistered person, then GST will be paid to Government by me or not?

Ans. Yes, you will be liable to pay tax on reverse charge basis for supplies from unregistered person.

Q1. How one can use SGST credit for the payment of IGST on another state?

Ans. SGST Credit can be used for payment of IGST liability under the same GSTIN only.

Q2. Can one State CGST be used to pay another state CGST?

Ans. The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities within that State for the same GSTIN only.

Q3. In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?

Ans. Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.

Q4. Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?

Ans. Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.

Q5. How will the credit / debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?

Ans. Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR2 provides for reporting of same by the recipient.

Q6. Whether credit is restricted under the GST Act, especially for rent-a-cab Service?

Ans. Input tax credit for rent-a-cab service is not available under GST.

Q1. A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?

Ans. In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

Q2. Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?

Ans. There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.

Q3. All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?

Ans. All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.

Q4. Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?

Ans. If the goods are meant to be supplied in the course of construction an invoice is necessary. If the goods are tools which are to be used for construction then delivery challan should be issued.

Q1. What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance?

Ans. Advance refunded can be adjusted in return.

Q2. Do registered dealers have to upload sale details of unregistered dealers also in GST?

Ans. Generally not. But required in case of inter-State supplies having invoice value of more than Rs 2.50 Lakhs.

Q3. How to incorporate two supplies in return for Pharma with same HSN code of four digits but having different tax rates?

Ans. Returns provide for furnishing rate wise details.

Q1. Should we discharge GST liability for all reverse charge having small amounts of Transaction or any amount limit is there?

Ans. It has been decided that Rs. 5000/- per day exemption will be given in respect of supplies received from unregistered person. For supplies above this amount, a monthly consolidated bill can be raised.

Q2. What is treatment of promotional item given free to end consumers by FMCG companies?

Ans. Tax will be charged only on the total consideration charged for such supply.

Q3. Under supply from unregistered dealer the purchaser have to pay GST on RCM basis.so whether stipend paid to intern will also come under RCM?

Ans. Stipend paid to interns will be employer-employee transactions. Hence, not liable for GST.

Q4. Salary by partnership firm to Partners as per Income Tax Act liable to GST?

Ans. Salary will not be liable for GST.


Q5. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?

Ans. Tax is payable on consideration received for the supply and ITC will be available accordingly.

Q6. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?

Ans. GST will be levied on the value charged for the supply only.

Q7. How will disposal of scrap be treated in GST?

Ans. If the disposal is in the course or furtherance of business purposes, it will be considered as a supply.

Q8. Salary by Partnership firm to Partners as per Income Tax Act liable to GST? Partners are not employees of the firm.

Ans. Salary will not be leviable of GST.

Q9. What is the treatment of promotional item given free to end consumers by FMCG companies? If taxable, whether ITC is allowed?

Ans. Tax is payable on consideration received for the supply and ITC will be available accordingly.

Q10. Whether GST will be leviable in case of returnable packing material like drums supplied with finished goods?

Ans. GST will be levied on the value charged for the supply only.

Q11. How will disposal of scrap be treated in GST?

Ans. If the disposal is in the course or furtherance of business purposes, it will be considered as a supply.

Q12. Salary by Partnership firm to Partners as per Income Tax Act liable to GST? Partners are not employees of the firm.

Ans.Salary will not be leviable of GST.

Q1. Will Krishi Mandi Fee (imposed in U.P.) be waived off in GST?

Ans. GST does not concern such fee so GST does not affect it.

Q2.We currently transport material on delivery challan and make a single bill at the end of the month. Can the same be done under GST?

Ans. If on every instance you are making a supply then an invoice needs to be issued. For any other movement of goods other than supply (as specified in Rule 55 of CGST Rules, 2017), a delivery challan may be issued.

Q3. Will service charge, as charged by some restaurants, be treated as consideration for a supply and hence considered liable for tax?

Ans. There is no distinction between goods or services under GST. Service charge like any other supply will be leviable to GST. It is also clarified that service charge is not a statutory levy. It is not levied by the Government.

Q4. I run a restaurant where I serve alcohol and provide food etc. How do I generate my invoices. What will attract GST and what will attract VAT?

Ans. Since, you are providing both taxable and non-taxable supply. You will charge VAT on the non-taxable supply (which is alcohol for human consumption) and GST on all other taxable supplies.

Q5. I am going to a jewelry shop and selling 10 gm gold and purchasing a 20 gm set in return. GST will be charged on 10 gm or 20 gm?

Ans. The value to be charged on such transaction will be the open market value of the entire transaction as per Rule 27(a) of the CGST Rules, 2017. Therefore, GST be charged on entire 20 gm.

Q6. As a composition dealer, will I have to issue a self invoice if I purchase goods from an unregistered person?

Ans. Yes, a composition dealer will issue a self invoice as he is required to pay GST. He will not be eligible for ITC also.

Q7. Can tax paid in one state be used as ITC by the same firm in another state?

Ans. No, if a firm is registered in more than one state, then each such registration will be treated as a separate registered person. Cross utilization of credit available with two different registered persons is not allowed.