FAQ on GST or Goods and Service Tax Act 2016

These compilation of Frequently Asked Questions on Goods and Service Tax is prepared and released by National Academy of Customs, Excise & Narcotics (NACEN), the apex training institution for capacity building in  indirect  taxation  under  the  Central  Board  of  Excise and Customs.

Frequently Asked Question on GST 2016

Overview of Goods and Services Tax (GST)

Q 1.  What is Goods and Service Tax (GST)?

Q 2.  What exactly is the concept of destination based tax on consumption?

Q 3.  Which of the existing taxes are proposed to be subsumed under GST?

Q 4. What principles were adopted for subsuming the above taxes under GST ?

Q 5. Which are the commodities proposed to be kept  outside the purview of GST?

Q 6. What will be the status in respect of taxation of  above commodities after introduction of GST?

Q 7. What will be status of Tobacco and Tobacco products under the GST regime?

Q 8. What type of GST is proposed to be implemented?

Q 9. Why is Dual GST required?

Q 10. Which authority will levy and administer GST?

Q 11. Why was the Constitution of India amended recently in the context of GST?

Q 12.  How a particular transaction of goods and  services would be taxed simultaneously under Central GST (CGST) and State GST (SGST)?

Q 13.  What are the benefits which the Country will accrue from GST?

Q 14. What is IGST?

Q 15. Who will decide rates for levy of GST?

Q 16. What would be the role of GST Council?

Q 17. What is the guiding principle of GST Council?

Q 18. How will decisions be taken by GST Council?

Q 19. Who is liable to pay GST under the proposed GST regime?

Q 20. What are the benefits available to small tax payers under the GST regime?

Q 21. How will the goods and services be classified under GST regime?

Q 22. How will imports be taxed under GST?

Q 23. How will Exports be treated under GST?

Q 24. What is the scope of composition scheme under GST?

Q 25. Whether the composition scheme will be optional or compulsory?

Q 26. What is GSTN and its role in the GST regime?

Q 27. How  are  the  disputes  going  to  be  resolved under the GST regime?

Q 28. What are the other legislative requirements for introduction of the GST?

Levy of and Exemption from Tax

Q 29. Where is the power to levy GST derived from?

Q 30. What is the taxable event under GST?

Q 31.  Is the reverse charge mechanism applicable only to services?

Q 32. What will be the implications in case of purchase of goods from unregistered dealers?

Q 33. In respect of exchange of goods, namely gold watch for restaurant services will the transaction be taxable as two different supplies or will it be taxable only in the hands of the main supplier?

Q 34. Whether supplies made without consideration will also come within the purview of Supply under GST?

Q 35. Who can notify a transaction to be supply of goods and/or services?

Q 36. Will a taxable person be eligible to opt for composition scheme only for one out of 3 business verticals?

Q 37. Can composition scheme be availed if the taxable person effects inter-State supplies?

Q 38. Can the taxable person under composition scheme claim input tax credit?

Q 39. Can the customer who buys from a taxable person who is under the composition scheme claim composition tax as input tax credit?

Q 40. Can composition tax be collected from customers?

Q 41. What is the threshold for opting to pay tax under the composition scheme?

Q 42. How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?

Q 43. What are the penal consequences if a taxable person violates the condition and is not eligible for payment of tax under the Composition scheme?

Q 44. What is the minimum rate of tax prescribed for composition scheme?

Q 45. When exemption from whole of tax collected on goods and/or services has been granted unconditionally, can taxable person pay tax?

Q 46. What is remission of tax/duty ?

Q 47. Whether remission is allowed under GST law ?

Q 48. Whether remission is allowed for goods lost or destroyed before supply?

Q 49. Whether remission is allowed on goods lost or destroyed for all reasons?

Q 50. Does the model GST Law empower the competent government to exempt supplies from the levy of GST?

Registration

Q 51. What is advantage of taking registration in GST?

Q 52. Can a person without GST registration claim ITC and collect tax?

Q 53. What will be the effective date of registration?

Q 54. Who are the persons liable to take a Registration under the Model GST Law?

Q 55. What is aggregate turnover?

Q 56. Which are the cases in which registration is compulsory?

Q 57. What is the time limit for taking a Registration under Model GST Law?

Q 58. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration ?

Q 59. Whether  a  person having multiple business verticals in a state can obtain for different registrations?

Q 60. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?

Q 61. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?

Q 62. Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under this Act?

Q 63. Whether the proper Officer can reject an Application for Registration?

Q 64. Whether the Registration granted to any person is permanent?

Q 65. Is it necessary for the UN bodies to get registration under MGL?

Q 66. What is the responsibility of the taxable person supplying to UN bodies?

Q 67. Is it necessary for the Govt. organization to get registration?

Q 68. Who is a Casual Taxable Person?

Q 69. Who is a Non-resident Taxable Person?

Q 70. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person?

Q 71. Is there any Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of obtaining registration under this Special Category?

Q 72. Whether Amendments to the Registration Certificate is permissible?

Q 73. Whether Cancellation of Registration Certificate is permissible?

Q 74. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?

Q 75. Can the proper Officer Cancel the Registration on his own?

Q 76. What happens when the registration is obtained by means of wilful mis-statement, fraud or suppression of facts?

Q 77. Is there an option to take centralized registration for services under MGL?

Q 78. If the  taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?

Q 79. Who is an ISD?

Q 80. Will ISD be required to be separately registered other than the existing taxpayer registration?

Q 81. Can a taxpayer have multiple ISDs?

Q 82. What could be the liabilities (in so far as registration is concerned) on transfer of a business?

Q 83. Whether all assessees/dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration?

Q 84. Whether the job worker will have to be compulsorily registered?

Q 85. Whether the goods will be permitted to be supplied from the place of business of a job worker?

Q 86. At the time of registration will the assessee have to declare all his places of business?

Q 87. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?

Q 88. Is there any facility for digital signature in the GSTN registration?

Q 89. What will be the time limit for the decision on the online application?

Q 90. What will be the time of response by the applicant if any query is raised in the online application?

Q 91. What is the process of refusal of registration?

Q 92. Will there be any communication related to the application disposal?

Q 93. Can the registration certificate be downloaded from the GSTN portal?

Meaning and Scope of Supply

Q 94. What is the taxable event under GST?

Q 95. What is the meaning of ‘Supply’?

Q 96. What is a taxable supply?

Q 97. What are the necessary elements that constitute supply under MGL?

Q 98. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?

Q 99. Importation of Goods is conspicuous by its absence in Section 3. Why?

Q 100. Are self-supplies taxable under GST?

Q 101. Whether transfer of title and/or possession is necessary for a transaction to constitute supply of goods?

Q 102. What do you mean by “supply  made  in  the course or furtherance of business”?

Q 103. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of MGL?   Give reasons for the answer.

Q 104. A dealer of air-conditioners transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?

Q 105. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?

Q 106. What are inter-state  supplies and intra-state supplies?

Q 107. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?

Q 108. Whether  Works contracts and Catering services will be treated as supply of goods or supply of services? Why?

Q 109. Whether  goods  supplied  on  hire  purchase basis will be treated as supply of goods or supply of services? Why?

Time of Supply

Q  110. What is time of supply?

Q 111. When does the liability to charge GST arise in respect of supply of goods?

Q 112. What is time of supply of continuous supply of goods?

Q 113. What is time of supply of goods sent on approval basis?

Q 114. Where  it  is  not  possible  to  determine  the time of supply in terms of sub-section 2, 3, 5 or 6 of Section 12 or that of Section 13 of MGL, how will time of supply be determined?

Q 115. When does the liability to pay GST arise in respect of supply of services?

Q 116. What is time of supply of service when invoice is not issued within prescribed period?

Q 117. What is time of supply of service when invoice is issued within prescribed period?

Q 118. What does “date of receipt of payment” mean?

Q 119. Suppose,  invoice  is  not  issued and  date of payment or date of completion of provision of service are also not ascertainable, what will be the time of supply?

Q 120. Suppose part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?

Q 121. What is time of supply of service in case of tax payable under reverse charge?

Q 122. What will be the time of supply in continuous supply of services?

Q 123. Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June 2017?

Valuation in GST

Q 124. What is the value of taxable supply to be adopted for the levy of GST?

Q 125. What is transaction value?

Q 126. Are there separate valuation provisions for CGST, SGST and IGST and Goods and Services?

Q 127. Is contract price not sufficient to determine valuation of supply?

Q 128. Is reference to Valuation Rules required in all cases?

Q 129. What is to be done if there are certain factors affecting price though the transaction is not covered by section 15(4)?

Q 130.  Can the transaction value declared under section 15(1) be accepted?

Q 131. Whether post-supply discounts or incentives are to be included in the transaction value?

Q 132. Whether pre-supply discounts allowed before or at the time of supply are includible in the transaction value?

Q 133. When are Valuation Rules applicable?

Q 134. What are the reasons for doubting transaction value declared?

Q 135. What are the methods provided for determining the value, in terms of draft GST Valuation Rules?

Q 136. What are the inclusions specified in Section 15(2) which could be added to Transaction Value?

GST Payment of Tax

Q 137. What are the Payments to be made in GST regime?

Q 138 . Who is liable to pay GST?

Q 139. When is GST payment to be done by the taxable person?

Q 140. What are the main features of GST payment process?

Q 141. How can payment be done?

Q 142. When is payment of taxes to be made by the Supplier?

Q 143. Whether time limit for payment of tax can be extended or paid in monthly installments?

Q 144. What happens if the taxable person files the return but does not make payment of tax?

Q 145. Which date is considered as date of deposit of the tax dues- Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government account?

Q 146. What are E-Ledgers?

Q 147. What is a tax liability register?

Q 148. What is a Cash Ledger?

Q 149. What is an ITC Ledger?

Q 150. What  is  the  linkage  between  GSTN  and  the authorized Banks?

Q 151. Can a taxpayer generate challan in multiple sittings?

Q 152. Can a challan generated online be modified?

Q 153. Is there a validity period of challan?

Q 154. What is a CPIN?

Q 155. What is a CIN and what is its relevance?

Q 156. What is the sequence of payment of tax where that taxpayer has liabilities for previous months also?

Q 157. What is an E-FPB?

Q 158. What is TDS?

Q 159. How will the Supplier account for this TDS while filing his return?

Q 160. How will the TDS Deductor account for such TDS?

Q 161. What is Tax Collected at Source (TCS)?

Q 162. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?

Electronic Commerce

Q 163.  What is e-commerce?

Q 164. Who is an e-commerce operator?

Q 165. Is it mandatory for e-commerce operator to obtain registration?

Q 166. Whether a supplier of goods/services supplying through e-commerce operator would be entitled to threshold exemption?

Q 167. Who is an aggregator?

Q 168. Is an aggregator required to be registered under GST?

Q 169. What is Tax Collection at Source (TCS)?

Q 170. At what time/intervals should the e-commerce operator make such deductions?

Q 171. What is the time within which such TCS is to be remitted by the e-commerce operator to Government account?  Is the operator required to file any returns for this purpose?

Q 172. How can actual suppliers claim credit of this TCS?

Q 173. Is the e-commerce operator required to furnish information to the Government?

Q 174. Is the e-commerce operator required to submit any statement? What are the details that are required to be submitted in the statement?

 Q 175. What is the concept of matching in e-commerce provisions and how it is going to work?

Q 176. What will happen if the details remain mismatched?

Job Work

Q 177. What is job-work?

Q 178. Whether goods sent by a taxable person to a job-worker will be treated as supply and liable to GST? Why?

Q 179. Can a registered taxable person send goods without payment of tax to his job-worker?

Q 180. Is a job-worker required to take registration?

Q 181. Whether the goods of principal directly supplied from the job-worker’s premises will be included in the aggregate turnover of the job- worker?

Q 182. Can the principal supply the  goods directly from the premises of the job-worker without bringing it back to his own premises?

Q 183. Under  what  circumstances  can  the  principal directly supply goods from the premises of job-worker?

Q 184. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job-worker?

Q 185. Are the provisions of job-work applicable to all category of goods?

Input Tax Credit

Q 186. What is input tax?

Q 187. What is the implication of different definition of “input tax” in three acts viz CGST, SGST and IGST Acts?

Q 188. Can GST paid on reverse charge be considered as input tax?

Q 189. Does input tax includes tax (CGST/ IGST/SGST) paid on input goods, input services and/ or  capital goods?

Q 190. What is the ITC entitlement of a person who has applied for registration under the Act within thirty  days  from  the  date  on  which  he  becomes liable to registration and has been granted such registration? (Section 16(2))

Q 191. A  person  becomes  liable  to  pay  tax  on  1st August, 2017 and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on …….

Q 192. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?

Q 193. Where  goods  and/or  services  received  by  a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?

Q 194. Where goods and/or services received by a taxable person are used for the purpose of business and   non-business   supplies, whether the input tax credit is available to the registered taxable person?

Q 195. What would be input tax eligibility in cases where there is a change in the constitution of a registered taxable person?

Q 196. What would be input tax eligibility in case where the goods and/or services supplied by a registered taxable person become absolutely exempt?

Q 197. What would be input tax eligibility in cases where taxable person paying tax under section 7 opts to pay tax under Compounding Scheme under Section 8?

Q 198. A  dealer  paying  tax  on  compounding  basis crosses  the  compounding  threshold  and  becomes a regular taxable person.  Can he avail ITC and if so from what date?

Q 199. Mr. B, a registered taxable person was paying tax under composition rate up to 30th July, 2017. However, w.e.f 31st July, 2017. Mr. B becomes liable to pay tax under regular scheme. Is he eligible for ITC?

Q 200. Mr. A applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd  June, 2017. Mr. A is eligible for input tax credit on inputs in stock as on …………..

Q 201. When shall a taxable person be not entitled to take input tax credit under sub-section (2), (2A) or sub-section (3) of Section 16 in respect of any supply of goods and / or services to him?

Q 202. Whether the principal is eligible to avail input tax credit of inputs sent to job worker for job work?

Q 203. What  is  the  time  period  within  which  the inputs sent for job work has to be received back by the principal?

Q  204. Whether principal has to reverse the input tax credit on inputs which have not been received back from the job worker within 180 days?

Q 205. Which of  the following is included for computation of taxable supplies for the purpose of availing credit: (a)    Zero-rated supplies; (b) Exempt supplies; (c) Both?

Q 206. What  is  the  time  period  within  which  the capital goods sent for job work has to be received back by the principal?

Q 207. What is the liability of the principal if the capital goods sent to job worker have not been received  within  2  years  from  the  date  of  being sent?

Q 208. A Taxable person is in the business of information  technology. He buys a motor vehicle for use of his Executive Directors. Can he avail the ITC in respect of GST paid on purchase of such motor vehicle?

Q 209. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961, will ITC be allowed in such cases?

Q 210. What are the conditions necessary for obtaining ITC?

Q 211. Where the goods against an invoice are received in lots or instalments, how will   a registered taxable person be entitled to ITC?

Q 212. Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to’ scenarios)?

Q 213. What is the time limit for taking ITC?

Q 214. Is there any negative list on which ITC is not permitted?

Q 215. Section 29 of the MGL provides that the ITC would be confirmed only if the inward details filed by the recipient are matched with the outward details furnished by the supplier in his valid return. What happens if there is a mismatch?

Q 216. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?

Q 217. What is the recovery mechanism for wrongly availed credit?

Concept of Input Service Distributor in GST

Q 218. What is Input Service Distributor (ISD)?

Q 219. What are the requirements for registration as ISD?

Q 220. What are the conditions/restrictions for distribution of credit?

Q 221. Is the ISD required to file return?

Q 222. Can a company have multiple ISD?

Q 223. What are the provisions for recovery of excess/ wrongly distributed credit by ISD?

Q 224. Whether CGST and IGST credit can be distributed by ISD as IGST credit to units located in different States?

Q 225. Whether SGST credit can be distributed as IGST credit by an ISD to units located in different States?

Q 226. Whether the ISD can distribute the CGST and IGST Credit as CGST credit?

Q 227. Whether  the  SGST  and  IGST  Credit  can  be distributed as SGST credit?

Q 228. What are the documents through which the credit can be distributed by an ISD?

Q 229. How to distribute common credit among all the units of an ISD?

Q 230. The ISD may distribute the CGST and IGST credit to recipient outside the State as        (a) IGST (b) CGST (c) SGST

Q 231. The ISD may distribute the CGST credit within the State as         (a) IGST (b) CGST (c) SGST (d) Any of the above.

Q 232. The credit of tax paid on input service used by more than one supplier is       (a)   Distributed among the suppliers who used such input service on pro rata basis of turnover in such State. (b)  Distributed equally among all the suppliers. (c)  Distributed only to one supplier. (d)   Cannot be distributed.

Q 233. Whether the excess credit distributed could be recovered by the department?

Q 234. What are the consequences of credit distributed in contravention of the provisions of the Act?

Returns Process and matching of Input Tax Credit

Q 235. What is the purpose of returns?

Q 236. Who needs to file Return in GST regime?

Q 237. What type of outward supply details are to be filed in the return?

Q 238. Is the scanned copy of invoices to be uploaded along with GSTR-1?

Q 239. Whether all invoices will have to be uploaded?

Q 240. Whether description of each item in the invoice will have to be uploaded?

Q 241. Whether value for each transaction will have to be fed? What if no consideration?

Q 242. Can a recipient feed information in his GSTR-2 which has been missed by the supplier?

Q 243. Do the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?

Q 244. What if the invoices do not match? Whether ITC given or denied? If denied, what action is taken against supplier?

Q 245. What will be the legal position in regard to the reversed input tax credit if the supplier later realises the mistake and feeds the information?

Q 246. What is the special feature of GSTR-2 ?

Q 247. Whether the ITC denied can be restored ?

Q 248. Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?

Q 249. Do  Input  Service  Distributors  (ISDs)  need to file separate statement of outward and inward supplies with their return?

Q 250. How does a taxpayer get the credit of the tax deducted at source on his behalf ?  Does he need to produce TDS certificate from the deductee to get the credit?

Q 251. Who all need to file Annual Return?

Q 252. Is an Annual Return and a Final Return one and the same?

Q 253. If a return has been filed, how can it be revised if some changes are required to be made?

Q 254. How can taxpayers file their returns?

Q 255. What all should a diligent taxpayer ensure for a hassle free compliance under GST?

Q 256. Is it compulsory for taxpayer to file return by himself ?

Q 257. What is the consequence  of  not  filing the return within the prescribed date?

Assessment and Audit

Q 258.  Who is the person responsible to make assessment of taxes payable under the Act?

Q 259. Is there any provision in MGL for tax treatment of goods returned by the recipient?

Q 260. ‘A’ supplied goods to ‘B’ in April 2017, these goods were returned by ‘B’ to ‘A’ on June 2017. The tax rate charged by ‘A’ on such goods was 18%. In May 2017, the rate was amended to 18.5%. What is the tax payable on return of such inward supply by ‘B’ to ‘A’?

Q 261. When can a taxable person pay tax on a provisional basis?

Q 262. What is the latest time by which final assessment is required to be made?

Q 263. Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?

Q 264. What recourse may be taken by the officer in  case  proper  explanation  is  not  furnished  for the discrepancy detected in the return filed under section 45 of MGL?

Q 265.Whether Proper Officer is required to give any notice to taxable person before completing assessment u/s 46?

Q 266. If a taxable person fails to file the return required under law (under section 27 or 31), what legal recourse is available to the tax officer?

Q 267. Under what circumstances can a best judgment assessment order issued under section 46 be withdrawn?

Q 268. What is the time limit for passing order u/s 46 and 47?

Q 269. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?

Q 270. Under what circumstances can a tax officer initiate Summary Assessment?

Q 271.  Other  than  appellate  remedy,  is  there  any other recourse available to the taxpayer against a summary assessment order?

Q 272. Is summary assessment order to be necessarily passed against the taxable person?

Q 273. Who can conduct audit of taxpayers?

Q 274. Whether  any  prior  intimation  is  required before conducting the audit?

Q 275.  What is the period within which the audit is to be completed?

Q 276. What is meant by commencement of audit?

Q 277. What are the obligations of the taxable person when he receives the notice of audit?

Q 278. What would be the action by the proper officer upon conclusion of the audit?

Q 279. Under what circumstances can a special audit be instituted?

Q 280. Who can serve the notice for special audit?

Q 281.  Who will do the special audit?

Q 282. What is the time limit to submit the audit report?

Q 283. Who will bear the cost of special audit?

Q 284. What action the tax authorities may take after the special audit?

Refunds

Q 285. What is refund?

Q 286. Can unutilized Input tax credit be allowed as refund?

Q 287. Can unutilized ITC be given refund, in case goods exported outside India are subjected to export duty?

Q 288. Can ITC of goods lying in stock at the end of the financial year (after introduction of GST) be refunded?

Q 289. Suppose  a  taxable  person  has  paid  IGST/ CGST/SGST mistakenly as an Interstate/intrastate supply, but the nature of which is subsequently clarified. Can the CGST/SGST be adjusted against wrongly paid IGST or vice versa?

Q 290. Whether purchases made by Embassies or UN be taxed or exempted?

Q 291. What is the time limit for taking refund?

Q 292. Whether principle of unjust enrichment will be applicable in refund?

Q 293. In case the tax has been passed  on  to  the consumer, whether refund will be sanctioned?

Q 294. Is there any time limit for sanctioning of refund?

Q 295. Can refund be withheld by the department?

Q 296. Where the refund is withheld under 38(9), as discussed in 11(c) above, will the taxable person be given interest?

Q 297. Is there any minimum threshold for refund?

Q 298. How will the refunds arising out of earlier law be paid?

Q  299. Whether refund can be paid before verification of documents?

Q 300. In case of refund under exports, whether BRC is necessary for granting refund?

Q 301. Will the principle of unjust enrichment apply to exports or deemed exports?

Q 302. How will the person prove that the principle of unjust enrichment do not apply in his case?

Q 303. Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?

Q 304. Presently  under  Central  law,  exporters  are allowed to obtain duty paid inputs, avail ITC on it and export goods upon payment of duty (after utilizing the ITC) and thereafter claim refund of the duty paid on exports. Will this system continue in GST?

Demands and Recovery

Q 305. Which is the applicable section for the purpose of recovery of tax short paid or not paid or amount erroneously refunded or input tax credit wrongly availed or utilized?

Q 306. Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51A?

Q 307. If notice  is  issued  under  Section  51A  and thereafter the noticee makes payment, is there any need to adjudicate the case?

Q 308. What is the relevant date for issue of Show Cause Notice under Section 51A/B?

Q 309. Is there any time limit to issue SCN or adjudicate the case u/s 51A/B?

Q 310. Can the person chargeable with tax pay the amount of demand along-with interest before issue of notice under section 51B?

Q 311. If notice is issued under Section  51B  and thereafter the noticee makes payment, is there any need to adjudicate the case?

Q 312. In case a notice is adjudicated under Section 51B and order issued confirming tax demand and penalty, does the noticee have any option to pay reduced penalty?

Q 313. What happens in cases (both under Section 51A & B) where notice is issued but order has not been passed within 3 years (51A)/5 years (51B)?

Q 314. What  happens  if  a person collects tax  from another person but does not deposit the same with Government?

Q 315. In case the person does not deposit tax collected in contravention of Section 52, what is the proper course of action to be taken?

Q 316. Is there any time limit to issue notice in cases under Section 52- tax collected but not paid?

Q 317. What are the modes of recovery of tax available to the proper officer?

Q 318. Can the proper officer allow payment of tax dues in installments?

Q 319. What happens in cases where the tax demand confirmed is enhanced in appeal/revision proceedings?

Q 320. If a person liable to pay tax has certain tax liability and in the meantime he transfers his business to another person, what happens to the existing tax liability?

Q 321. What happens to tax dues where the Company (taxable person) goes into liquidation?

Q 322. What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax?

Q 323. What happens to the tax liability of a taxable person, whose business is carried on by any guardian / trustee or agent of a minor?

Q 324. What happens when the estate of a taxable person is under the control of Court of Wards?

Appeals, Review and Revision in GST

Q 325.  Whether any person aggrieved by any order or decision passed against him has the right to appeal?

Q 326. When  Commissioner  of  CGST  feels  that  the order passed is not legal and proper, whether he can revise the order himself ?

Q 327. What is the time limit to file appeal to First Appellate Authority?

Q 328. Whether this time limit applies even for the departmental  appeal/application  filed  consequent to order of Commissioner of CGST?

Q 329. Whether the first appellate authority has any powers to condone the delay in filing appeal?

Q 330. Whether the first appellate authority has any powers to allow additional grounds not specified in the appeal memo?

Q 331. The order passed by First Appellate Authority has to be communicated to whom?

Q 332. What is the amount of mandatory pre-deposit which should be made alongwith every appeal?

Q 333. What is the amount in dispute?

Q 334. Whether in an appeal the FAA can pass an order enhancing the quantum ofduty/fine/penalty/reduce the amount of refund/ITC from the one passed by the original authority?

Q 335. (Only  for  SGST  law)  What  is  the  provision relating to pre-deposit before filing appeal to file appeal to First Appellate Authority under SGST?

Q 336. (only for SGST law) What is the meaning of “serious case”?

Q 337. Can  the  Commissioner  of  SGST  revise  any order passed under the Act by his subordinates?

Q 338. Can the Commissioner of SGST order for staying of operation of any order passed by his subordinates pending such revision?

Q 339. Are there any fetters to the powers of Commissioner under SGST to revise orders of subordinates?

Q 340. When the Tribunal is having powers to refuse to admit the appeal?

Q 341. What is the time limit within which appeal has to be filed before the Tribunal?

Q 342. Can the Tribunal condone delay in filing appeal before it beyond the period of 3 months? If so till what time?

Q 343. What is the time limit for filing memorandum of cross objections before Tribunal?

Q 344. Bring out the differences in appeal (to Tribunal) provisions under CGST & SGST?

Q 345.  Whether interest becomes payable on refund of pre-deposit amount?

Q 346.  An appeal from the order of Tribunal lies to which forum?

Q 347. What is the time limit  for  filing  an  appeal before the High Court?

Advance Ruling

Q 348. What is the meaning of Advance Ruling?

Q 349. Which are the matters enumerated in Section 97 for which advance ruling can be sought?

Q 350. What is the objective of having a mechanism of Advance Ruling?

Q 351. What will be the composition of Authority for advance rulings (AAR) under GST?

Q 352. What is the Appellate authority for advance ruling (AAAR) and what would be its composition?

Q 353. How may AAR and AAAR will be constituted under GST?

Q 354. To whom will the Advance Ruling be applicable?

Q 355. What  is  the  time period for applicability of Advance Ruling?

Q 356. Can an advance ruling given be nullified?

Q 357. What is the procedure for obtaining Advance Ruling?

Q 358. Under what circumstances will the application for Advance Ruling be compulsorily rejected?

Q 359. What is the procedure to be followed by AAR once the application is admitted?

Q 360. What happens if there is a difference of opinion amongst members of AAR?

Q 361. What are the provisions for appeals against order of AAR?

Q 362. Can the AAR & AAAR order for rectification of mistakes in the ruling?

Settlement Commission

Q 363. What are the basic objective of Settlement Commission?

Q 364. Can tax disputes arising on account of both intra-state and inter-state transactions be settled under the MGL?

Q 365. What is meant by a Case under the provisions of Settlement in the MGL?

Q 366. What  will  be  the  composition  of  members which will consider/hear settlement application?

Q 367. What  happens  when  there  is  difference  of opinion amongst members hearing the settlement application?

Q 368. Who can apply for settlement?

Q 369. What should be the contents of the settlement application ?

Q 370. What are the conditions which must be fulfilled before application for settlement can be accepted?

Q 371. What are the circumstances in which application for settlement cannot be entertained?

Q 372. Can the applicant withdraw  his  settlement application once filed?

Q 373. What orders can be passed by the Settlement Commission?

Q 374. What are the circumstances in which order of Settlement Commission can be revoked?

Q 375. Who cannot use Settlement Commission?

Q 376. What are the powers of Settlement Commission?

Inspection, Search, Seizure and Arrest

Q 377. What is the meaning of the term “Search”?

Q 378. What is the meaning of the term “Inspection”?

Q 379. Who can order for carrying out “Inspection” and under what circumstances?

Q 380. Can the proper officer authorize Inspection of any assets/premises of any person under this Section?

Q 381. Who can order for Search and Seizure under the provisions of MGL?

Q 382. What is meant by ‘reasons to believe’?

Q 383. Is it mandatory that such ‘reasons to believe’ has to be recorded in writing by the proper officer, before issuing authorization for Inspection or Search and Seizure?

Q 384. What is a Search Warrant  and  what  are  its contents?

Q 385. When does goods become liable to confiscation under the provisions of MGL?

Q 386. What powers can be exercised by an officer during valid search?

Q 387. What is the procedure for conducting search?

Q 388. What are the basic requirements to be observed during Search operations?

Q 389. Can a CGST/SGST officer access business premises under any other circumstances?

Q 390. When is search said to be illegal?  Is evidence collected in the course of an illegal search admissible in trial proceedings?

Q 391. What is meant by the term ‘Seizure’?

Q 392. Does MGL have any power of detention of goods and conveyances?

Q 393. What is the distinction in law between ‘Seizure’ and ‘Detention’?

Q 394. What are the safeguards provided in MGL in respect of Search or Seizure?

Q 395. Is there any special document required to be carried during transport of taxable goods?

Q 396. What is meant by the term “arrest”?

Q 397.  When can the proper officer authorize ‘arrest’ of any person under MGL?

Q 398. What are the safeguards provided under MGL for a person who is placed under arrest?

Q 399. What are the precautions to be taken during arrest?

Q 400. What are the broad guidelines for arrest followed in CBEC?

Q 401. What is a cognizable offence?

Q 402. What is a non-cognizable offence?

Q 403. What are cognizable and non-cognizable offences under MGL?

Q 404. When can the proper officer issue summons under MGL?

Q 405. What are the responsibilities of the person so summoned?

Q 406. What can be the consequences of non- appearance to summons?

Q 407.What are the guidelines for issue of summons?

Q 408. What are the precautions to be observed while issuing summons?

Q 409. Are there any class of officers who are required to assist CGST/SGST officers?

Offences and Penalties, Prosecution and Compounding

Q 410. What are the prescribed offences under MGL?

Q 411. What is meant by the term penalty?

Q 412. What are the general disciplines to be followed while imposing penalties?

Q 413. What is the quantum of penalty provided for in the MGL?

Q 414. What will be considered as ‘repeated  short payments’ for the purpose of levy of penalty?

Q 415. Is any penalty prescribed for any person other than the taxable person?

Q 416. What is the penalty provided for any contravention for which no separate penalty has been prescribed under MGL?

Q 417. What action can be taken for transportation of goods without valid documents or attempted to be removed without proper record in books?

Q 418. What is the penalty prescribed for a person who opts for composition scheme despite being ineligible for the said scheme?

Q 419. What is meant by confiscation?

Q 420. Under which circumstances can goods be confiscated under MGL?

Q 421. What happens to the goods upon confiscation of goods by the proper officer?

Q 422. After confiscation, is it required to give option to the person to redeem the goods?

Q 423. Can any conveyance carrying goods without cover of prescribed documents be subject to confiscation?

Q 424. What is Prosecution?

Q 425. Which are the offences which warrant prosecution under the MGL?

Q 426. What is the punishment prescribed on conviction of any offence under the MGL?

Q 427. What are cognizable and non-cognizable offences under MGL?

Q 428. .Is prior sanction of competent authority mandatory for initiating prosecution?

Q 429. Is ‘mensrea’ or culpable mental state necessary for prosecution under MGL?

Q 430. What is a culpable state of mind?

Q 431. Can a company be proceeded against or prosecuted for any offence under the MGL?

Q 432. What is meant by compounding of offences?

Q 433. Can offences under MGL be compounded?

Q 434. Are there any monetary limits prescribed for compounding of offence?

Q 435. What is the consequence of compounding of an offence under MGL?

Overview of the IGST Act

Q 436. What is IGST?

Q 437. What are inter-state supplies?

Q 438. How will the Inter-State supplies of Goods and Services be taxed under GST?

Q 439. What are the salient features of the draft IGST Law?

Q 440. What are the advantages of IGST Model?

Q 441. How will imports/exports  be  taxed  under GST?

Q 442. IGST Act is very small with very few definitions and major part catering to settlement commissioner. Whether provisions in CGST or SGST Act will apply to IGST Act?

Q 443. How will the IGST be paid?

Q 444. How will the settlement between Centre, exporting state and importing state be done?

Place of Supply of Goods and Service

Q 445. What is the need for the Place of Supply of Goods and Services under GST?

Q 446. Why are place of supply provisions different in respect of goods and services?

Q 447. What proxies or assumptions in a transaction can be used to determine the place of supply?

Q 448. What  is  the  need  to  have  separate  rules for  place  of  supply  in  respect  of  B2B  (supplies to registered persons) and B2C (supplies to unregistered persons) transactions?

Q 449. What would be the place of supply where goods are removed?

Q 450. What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person?

Q 451. What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle?

Q 452 . What is the default presumption for place of supply in respect of B2B supply of services?

Q 453. What is the default presumption for place of supply in respect of unregistered recipients?

Q 454. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?

Q 455. What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states?

Q 456. What will be the place of supply of goods in respect of transport of goods by courier?

Q 457.  What will be the place of supply if a person travels from Mumbai to Delhi and back to Mumbai?

Q 458. Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person. What will be the place of supply?

Q 459. What will be the place of supply for mobile connection? Can it be the location of supplier?

Q 460. A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?

Q 461. A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?

Q 462. A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply?

Transitional Provisions

Q 463. Will the CENVAT/ITC carried forward in the last return prior to GST under earlier law be available as ITC under GST?

Q 464. A  registered  taxable  person  say,  purchases capital goods in the last quarter of 2016-17. Though the invoice is received within 31st March but the capital goods are received on 5th April, 2017 (i.e. in GST regime). Will such a person get full credit of CENVAT in 2017-18?

Q 465. VAT credit was not available on items ‘X’ & ‘Y’ as capital goods in the earlier law. Since they are covered in GST, can the registered taxable person claim it now?

Q 466. Assuming such a person wrongly enjoyed the credit, will the recovery be done in GST or earlier law?

Q 467.  Give two examples of registered taxable persons who were not liable to be registered under the earlier law but are required to be registered under GST?

Q 468. Will ITC be allowed to a service provider on VAT paid inputs held as stock on the appointed day?

Q 469. A registered taxable person has Rs 1000 ITC credited to his electronic credit ledger from the last return under the earlier law. Now, he switches over to composition scheme in GST, will he get refund of that ITC?

Q 469. Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within 6 months? If, say, goods are returned in GST by a buyer after 6 months of sales, will it become taxable in CST or GST?

Q 470. Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the earlier law are returned after completion of job work after the appointed day?

Q 471. What  happens  if  the  job  worker  does  not return the goods within the specified time?

Q 472. Can a manufacturer transfer finished goods sent for testing purpose to the premises of any other taxable person?

Q 473. If finished goods removed from a factory for carrying out certain processes under earlier law are returned on or after the appointed day, whether GST would be payable?

Q 474. When  tax  shall  become  payable  in  GST  on manufactured goods sent to a Job worker under the earlier law?

Q 475. Is extension of two months as discussed in section 150, section 151 and section 152 automatic?

Q 476. What is the time limit for issue of debit/credit note(s) for revision of prices?

Q 477. What will be the fate of pending refund of tax/ interest under the earlier law?

Q 478. What  will  be  fate of any appeal or revision relating to a claim of CENVAT/ITC which is pending under the earlier law? If say, it relates to output liability then?

Q 479. If  the  appellate  or  revisional  order  goes  in favour of the assessee, whether refund will be made in GST? What will happen if the decision goes against the assessee?

Q 480. How shall the refund arising from revision of return(s) furnished under the earlier law be dealt in GST?

Q 481. If any goods or services are supplied in GST, in pursuance of contract entered under earlier law, which tax will be payable?

Q 482. If  consideration  for  a  particular  supply  of services was received under the earlier law and tax on it was paid, will GST also become payable where such supply is made in GST regime?

Q 483. The supply of goods/services was made under the earlier law but a part of the consideration (say the retention money) is received in GST regime, will tax be payable in GST?

Q 484. If services are received by ISD under the earlier law, can the ITC relating to it be distributed in GST regime?

Q 485. Where  goods(including capital goods) belonging to the principal are lying with the agents on the appointed day, will the agent be able to take ITC on the same?

Q 486. Goods   were   sent   on   approval   before   the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable in GST?