As the launch of GST or goods and services tax approaches, the Central Board of Direct Taxes has come out with answers to various questions pertaining to many sectors. GST, touted as the biggest tax reform since Independence in 1947, is set for a midnight launch on June 30. The CBEC, under the purview of the Department of Revenue, shed light on a variety of topics including aggregate turnover, GSTIN or GST identification number, input tax credit (ITC), tax invoice and recording of Aadhaar/PAN.
Here are some of the queries addressed by the CBEC:
Does aggregate turnover include the value of inward supplies received on which tax is payable on a reverse charge basis (RCB)?
Aggregate turnover does not include value of inward supplies on which tax is payable on a reverse charge basis. As per the section 2(6) of CGST Act, aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.
What if the dealer migrated with a wrong PAN as the status of his or her firm was changed from proprietorship to partnership?
New registration would be required as the partnership firm would have a new PAN.
A taxable person's business is in many states. All supplies are below Rs 10 lakh. He or she makes an inter-state supply from one state. Is he or she liable for registration?
He or she is liable to register if the aggregate turnover (all India) is more than Rs 20 lakh (Rs 10 lakh in Special Category States) or if he or she is engaged in inter-state supplies.
Can the provisional GSTIN be used or a new GSTIN will be needed? Can the provisional GSTIN be used till a 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 and final GSTIN would be same.
A shop sells taxable and exempt products to the same person (B2C). Is it required to issue tax invoice and bill of supply separately?
In such a case, the person can issue one tax invoice for the taxable supply and also declare exempted supply in the same invoice
Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
There is no requirement to take Aadhaar/PAN details of the customer under the GST Act.
Are all expenses like freight, transport and packing, which are charged in sales invoice, taxable in GST? How to charge these in a bill?
All expenses will have to be included in the value and the invoice needs to be issued accordingly.
According to Section 15 of CGST Act, the value of a supply of goods or services or both shall include:
Any taxes, duties, cesses, fees and charges levied under any law
Any amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both
Incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services
Interest or late fee or penalty for delayed payment of any consideration for any supply
Subsidies directly linked to the price excluding subsidies provided by Central and state governments
Can construction material be moved to builders on a delivery challan and tax invoice be issued after completion of activity?
If the goods are meant to be supplied in the course of construction, an invoice is necessary. If the goods are tools which are to be used for construction, a delivery challan should be issued.