GST: Commonly Asked Queries and Response

As you know GST has come in to the force from 1^st July, 2017, there are various queries raised by many people related to various topics such as Calculation of Value for supply, Availing Input Tax Credit etc. So, here you will find the commonly asked queries and solutions.

Questions Related to Value of supply.

Q 1. Does aggregate turnover include value of inward supplies received on which RCM is payable?

Ans.  Aggregate turnover does not include value of inward supplies on which tax is payable on reverse charge basis.

Q 2. All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?

Ans. All these expenses will have to be included in the value and invoice needs to be issued accordingly.

Q 3. 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, so treat accordingly.

Questions Related to Input Credit.

Q 4 (a). If an FSD purchases directly from manufacturer and has value cum excise duty and excise duty is not separately shown will he get full credit?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 4 (b). Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice?

Ans. Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 5. In June 17 VAT return no amount carried forward and held stock of Rs 50 lakh. Then can we take credit of that stock or not?

Ans. The supplier would be eligible to carry forward only the closing balance of ITC from VAT return for June 17.

Q 6. Would we be eligible for credit on Capital Goods in transit and received post GST?

Ans. No provision for such credit is there in GST law.

Q 7. What about VAT balance pending on transition date?

Ans. Balance VAT credit in the return will be transferred to new provisional ID as SGST Credit.

Q 8. How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid?

Ans. For all inputs with duty paying documents available respective CGST/SGST credit will be available. But credit of CST will not be available.

Q 9. Can you clarify for 40 per cent benefit on closing stock does one year limit apply or not?

Ans. Deemed credit will be available for all stock procured within a 1 year period.

Q 10. 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.

Q 11. 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.

Q 12. 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.