Frequently Asked Questions on GST
Q. What is Goods and Services Tax ?
GST is a destination based tax on consumption of goods and services. It is proposed to be charged at every stage right from manufacturer up to final consumption with credit of taxes paid at previous stages available as set off. To sum up, just the value addition will be subject to tax and the major burden will be borne by the end consumer.
Q. What is IGST ?
An integrated GST (IGST) would be levied and collected under the scheme, by the Centre on inter-state supply of goods and services, as mentioned under the Article 269A of the Indian Constitution.
Q. What is CGST ?
CGST is a part of Goods and Service Tax (GST). CGST means Central Goods and Service Tax, CGST is a tax levied on Intra State supplies of both goods and services by the Central Government and will be governed by the CGST Act. one of the three categories under Goods and Service Tax (CGST, IGST and SGST) with a concept of one tax one nation. CGST falls under Central Goods and Service Tax Act.
Q. What is SGST ?
SGST is a part of Goods and Service Tax (GST).SGST means State Goods and Service Tax, Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the State Government and will be governed by the SGST Act.
Does aggregate turnover include value of inward supplies received on which RCM is payable?
Refer Section 2(6) of CGST Act. Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.
What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
New registration would be required as partnership firm would have new PAN.
A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?
He is liable to register if the aggregate turnover (all India) is more than 20 lacs or if he is engaged in inter-State supplies.
Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till new one is issued?
Provisional GSTIN (PID) should be converted into final GSTIN within 90 days. Yes, provisional GSTIN can be used till final GSTIN is issued. PID & final GSTIN would be same.
Whether trader of country liquor is required to migrate to GST from VAT as liquor is out of GST law?
If the person is involved in 100% supply of goods which are not liable for GST, then no registration is required.
Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?
Not liable to tax means supplies which is not leviable to tax under the CGST/SGST/IGST Act. Please refer to definition under Section 2(78) of the CGST Act
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?
A supplier of service will have to register at the location from where he is supplying services.
Whether aggregate turnover includes turnover of supplies on which tax is payable by the recipient under reverse charge?
Outward supplies on which tax is paid on reverse charge basis by the recipient will be included in the aggregate turnover of the supplier.
If there are two SEZ units within same state, whether two registrations are required to be obtained?
SEZs under same PAN in a state require one registration. Please see proviso to rule 8(1) of CGST Rules
Is an advocate providing interstate supply chargeable under Reverse Charge liable for registration?
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.
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