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 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 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 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 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 44. What is the minimum rate of tax prescribed for composition scheme?
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 61. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
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 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 77. Is there an option to take centralized registration for services under MGL?
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 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 99. Importation of Goods is conspicuous by its absence in Section 3. Why?
Q 100. Are self-supplies taxable under GST?
Q 102. What do you mean by “supply made in the course or furtherance of business”?
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?
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 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 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?
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 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 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 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 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 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 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 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 183. Under what circumstances can the principal directly supply goods from the premises of 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 188. Can GST paid on reverse charge be considered as input tax?
Q 210. What are the conditions necessary for obtaining ITC?
Q 213. What is the time limit for taking ITC?
Q 214. Is there any negative list on which ITC is not permitted?
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 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 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 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 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 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 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 270. Under what circumstances can a tax officer initiate Summary Assessment?
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 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 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?
Demands and Recovery
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 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 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 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 327. What is the time limit to file appeal to First Appellate Authority?
Q 329. Whether the first appellate authority has any powers to condone the delay in filing appeal?
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 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 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 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 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 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 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 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 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 449. What would be the place of supply where goods are removed?
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 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 459. What will be the place of supply for mobile connection? Can it be the location of supplier?
Transitional Provisions
Q 466. Assuming such a person wrongly enjoyed the credit, will the recovery be done in GST or earlier law?
Q 468. Will ITC be allowed to a service provider on VAT paid inputs held as stock on the appointed day?
Q 471. What happens if the job worker does not return the goods within the specified time?
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?