GST – Frequently Asked Question

Q.  If reverse charge is suspended till 31.03.2018, will GTAs have to pay tax under forward charge from now on?

Ans.  No, reverse charge is being suspended only for purchases made by registered persons from unregistered persons. Reverse charge liability as notified under section 9(3) of the CGST Act, 2017, will continue to be applicable.

Q.  Is it correct that one does not need to pay GST on the advance amount received for any supply?

Ans.  No, the correct position is that the liability to pay GST on supply of goods shall not arise at the time of receipt of advance. GST shall have to be paid when the supply of goods is made. Please note that this is only applicable for a registered person having turnover up to ₹ 1.5 crores. This is not applicable for supplies of services.

Q.  Goods Transport Agencies  are refusing to transport goods for unregistered persons saying that they will need to get registered if the consignee is unregistered. Is this correct?

Ans. No, supplies made by a GTA to an unregistered person have been exempted from GST. Therefore, a GTA will not need to get registered just because it is supplying GTA services to an unregistered person.

Q.  Can Government departments start deducting TDS from payments made to contractors?

Ans.  No, the operationalization of TDS registration and collection under GST has been put on hold till 01.04.2018.

Q.  Do Government departments need to  compulsorily register for complying with TDS provisions?

Ans.  No, since the operationalization of TDS provisions has been put on hold till 01.04.2018, a government department need not compulsorily register just to deduct TDS. If the government department is otherwise liable to pay GST, then it should take registration.