Where
is the power to levy GST obtained from?
Article 246A of
the Constitution, which was brought by the Constitution (101st Amendment) Act,
2016 granted the co-existent powers to both parliament and state legislatures
to make laws with respect to GST. Nevertheless, -clause 2 of Article 246A read
with Article 269A provides with the exclusive power to the Parliament to
legislate with respect to inter-state trade or commerce.
What do you understand by the taxable
event under GST?
Supply of goods
and/or services. CGST & SGST will be levied on intra-state supplies while
IGST will be levied on inter-state supplies. The charging sections are section
7 (1) of CGST/SGST Act and Section 4(1) of the IGST Act.
Is the reverse charge mechanism only
applicable to services?
No, reverse charge are applicable to supplies of
both services and goods.
Bring
the implications in light, in case of purchase of goods from unregistered
dealers?
The
receiver of goods won’t be able to get ITC. Furthermore, the recipients who are
registered under composition schemes would be liable to pay tax under reverse
charge.
Can
composition scheme be availed if the taxable person effects inter-State
supplies?
No,
the composition scheme is applicable subject to the condition that the taxable
person does not affect inter-state supplies.
Can
the input tax credit be claimed by the taxable person under composition scheme?
Can
the input tax credit be claimed by the taxable person under composition scheme?
The
customer who buys from a taxable person who is under the composition scheme can
claim composition tax as input tax credit?
No,
customer who buys goods from taxable person who is under composition scheme is
in-eligible for composition input tax credit because a composition scheme
supplier cannot issue a tax invoice
Can
composition tax be collected from customers?
No,
the taxable person under composition scheme isn't permitted to collect tax. It
states that a composition scheme supplier cannot issue a tax invoice.
Give
the threshold for opting to pay tax under the composition scheme?
The
threshold for composition scheme is Rs. 50 Lakhs of aggregate turnover in
financial year.
Give
the penal consequences if a taxable person violates the condition and is
in-eligible for payment of tax under the Composition scheme?
The
taxable person who was in-eligible for the composition scheme would be liable
to pay tax, interest and in addition he shall also be liable to a penalty
equivalent to the amount of tax payable. (Section 8 (3) of the MGL).
When
exemption from whole of tax collected on goods and/or services has been
conceded unconditionally, can taxable person pay tax?
No,
the taxable person presenting such goods or services shall not collect the tax
on such goods or services.
What
do you understand by the remission of tax/duty?
It
means relieving the tax payer from the obligation to pay tax on goods when they
are lost or destroyed due to any natural causes. Remission is subject to
conditions prescribed under the law and rules made thereunder.
State
whether remission is allowed under GST law?
Yes,
brought section 11 of Model GST law permits remission of tax on supply of
goods.
Does
the model GST Law empower the competent government to exempt supplies from
levying GST?
Yes.
Under the Model GST Law's section 10, the Central or the State Government, on
the recommendation of the GST council can exempt the supplies from the levy of
GST either generally or subject to conditions.
What
are the differences between the UPA’s GST and the NDA’s GST?
The primary
differences:
Petroleum
sector has been kept out of the extent of GST.
Liquor for
human consumption is exempted, although tobacco and tobacco products will fall
under GST.
There
is a 1% tax on top of the GST for inter-state movement of goods and services.
What
are the taxes that GST replaces?
Numerous
different indirect taxes, have been replaced by GST:
Central Excise
Duty
Service Tax
Countervailing
Duty
Special
Countervailing Duty
Value Added
Tax (VAT)
Central Sales
Tax (CST)
Octroi
Entertainment
Tax
Entry Tax
Purchase Tax
Luxury Tax
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taxes
Taxes
applicable to the lotteries.
What
is Input GST?
GST
on purchase is known as Input GST.
What
is GST Payable?
Output
GST- Input GST = GST Payable.
What
is GST Credit?
If
the input GST is more than the Output GST, then it’s the GST Credit. While the
It calculated differently for different types of GST.
How
would you differentiate between CGST, SGST and IGST?
1. CGST stands for Central Goods and Services Tax. CGST
is charged on Local Sales within State which is collected by Central
Government. CGST will replace taxes like Central Excise and Service tax
2. SGST stands for State Goods and Services Tax which is
charged on Local Sales within State. SGST is charged and collected by State
Government. SGST will replace taxes like VAT, Luxury tax and Entertainment tax
3.
IGST stands for
Interstate Goods and Services Tax. IGST will be charged on Central Sales (Sales
Outside State) which will be charged and collected by Central Government on
Interstate Supply of Goods and Services. IGST will replace taxes like
CST(Central Sales Tax).
What
do you understand by Output GST?
GST
on sales is called Output GST also referred as GST Liability
State
the procedure of Adjustment of IGST with CGST SGST Credit?
Output IGST
can be adjusted with Input GST as per the given order -
Input IGST if
any
Input CGST if
any
Input
SGST if any
Name
the different invoices under GST?
The different
invoices under GST are -
1. For all
types of Taxable Sales (Local or Central), normally a tax invoice is to be
issued
2. Same Series
number of invoice will start for local and central sales
3. Same series
to be used for sale to registered and sale to unregistered person
4. For All
types of taxable sales (Local or Central), generally a tax invoice is to be
issued
5. Sale of
exempted goods
6.
Sale by composition dealer
What
is the registration limit in GST?
The
registration limit in GST is 20 Lacs. Such that if the aggregate turnover is
greater than 20 lacs or likely to exceed 20 lacs, then Compulsory Registration
(Limit is 10 lacs for North Eastern States).
The aggregate
turnover includes all types of sales like -
1. Taxable
Sales
2. Exempt
Sales
3. Export
Sales
4. Interstate
Sales
5. Sales by
Agent of Principal (Amount of taxes not to be included)
There
If a person is making only exempt sales such that the amount of sales is more
than 20 lacs, still compulsory registration in GST. Similarly if a person is
making only export sales, then also Compulsory Registration in GST
Can
you adjust CGST and SGST against each other?
CGST credit
cannot be adjusted against SGST Payable. On the other hand SGST Credit cannot
be adjusted CGST Payable. However, both can be adjusted against IGST Payable. Such
that the Sequence of Adjustment is Output IGST can be adjusted with Input GST
in the following order
Input IGST if
any
Input CGST if
any
Input
SGST if any
What
are the disadvantages of GST?
Some of the
disadvantages of GST are -
1. There are
too many returns to be filed
2. Returns
have become Complicated
3. Difficult
to compute
4. IGST and
not CGST on Interstate Sales
5. Last Period
Tax to be Paid first
6.
Last Period Tax to be Paid first
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