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TMI BlogLATEST 50 SOLUTIONS TO TAXPAYERS PROBLEMS (SHORT FAQ) dated 28-8-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... er which fresh LUT/Bond in the new format is required to be submitted. Q. 4. Some assessees had multiple central excise registrations under the earlier regime and were having different LUT/Bond for each premises. In GST, there will be single registration for such assessees. Do they require furnishing fresh Bond/LUT for their principal place of business or the existing Bond/LUT issued to them prior to 30-6-2017 shall be applicable for the export purpose? Ans. Circular No. 4/4/2017-GST, dated 7-7-2017 clarifies this. Old LUT/bond is valid till 31-7-2017, after which fresh LUT/Bond in the new format is required to be submitted. Q. 5. With reference to clause (5) of Rule 96A of CGST Rules, 2017 as inserted vides Ntf. No. 15/2017-Central Tax, dated 1st July, 2017 (5) The Board, by way of notification, may specify the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond. It may be clarified as to whether any conditions and safeguard has been notified by the Board as on date, as certain parties have filed LUT for export in this office. Ans. Yes, conditions and safeguards have been specified by Notification No. 16/2017-Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has office at Udaipur which is 290 Kilometers away from Kota due to which it is impractical to file LUT at Udaipur with Commissioner as compared to previous procedure. Ans. Circular No. 2/2/2017-GST, dated 4-7-2017 has clarified that an exporter wishing to export without payment of integrated tax may approach the jurisdictional AC/DC for acceptance of bond/LUT. Circular No. 4/4/2017-GST, dated 7-7-2017 has further clarified that the bond/LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. Q. 10. As per sub-rule (5) of rule 96A of CGST Rules, 2017, Board will notify where LUT is to be furnished in place of Bond. Since Board has not notified so far, therefore, this office is of the view that Bond is to be furnished in all cases as of now. Please clarify. Ans. The Board has, vide Notification No. 16/2017-Central Tax, dated 7-7-2017, specified the conditions and safeguards under which an exporter may file a LUT instead of a bond. Q. 11. Whether in case of assesses exporting goods under LUT in Central Excise Act, 1944, can export goods after 1-7-2017 under GST on the bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 25(4) of CGST Act, 2017 invoice is required to be issued and GST should also be paid. Q. 16. Kindly clarify the accounting treatment of Credit Note while raising Invoice after implementation of GST? Ans. For the purpose of GST law, credit note can be issued to reduce the taxable value or to reduce tax payable or to claim goods return, where the relevant invoice had already been issued and taxable value or tax charged in that tax invoice is in excess. Section 34 of CGST Act, 2017 may be referred to for further details. Q. 17. Whether any trader having turnover of less than ₹ 20 lakh needs to sell his goods on proper invoice/billing? Ans. Only registered persons are required to issue tax invoices as per provision of Section 31 of CGST Act, 2017 read with rules. An unregistered person may supply goods on ordinary commercial invoices and he cannot issue tax invoice. Q. 18. What is the procedure/documents required for sending free replacement to the customers at free of cost? Ans. Where free replacement is provided to the customers without consideration under warranty, no GST is chargeable on such replacement. In such cases goods may be sent on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices) is registered under GST Re-seller/Supplier is under exemption or composition schemes Ans. In case of unregistered dealer, recipient will pay tax on reverse charge basis. He can get the ITC provided he fulfills other conditions as mentioned in Section 16 of the CGST Act, 2017. In case of purchase from composition taxable person, the composition person cannot charge any tax and hence the question of availing ITC does not arise. Q. 27. Please clarify ITC Credit status for the following condition : On GST Deducted Commission for Distributor registered under GST Taxpayer Ans. Any deductions under TDS/TCS provisions from amount paid or credited to the supplier shall be credited to the electronic cash ledger which can be used for payment of tax. Q. 28. Please clarify ITC Credit status for the following condition : If Commission received Without Deducting GST in cases where distributor under Exemption or composition Scheme Ans. The section concerning GST deduction (Section 51 of CGST Act, 2017) has not been operationalized till now. But if the distributor is under threshold exemption or under composition scheme, the requirement for GST deduction depen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted to pay output tax of construction/work contract services. Please see Section 17(5)(c) and (d) of CGST Act, 2017. Q. 34. What are the provisions under CGST Act as to the eligibility of CENVAT credit of service tax on invoices which are received after the appointed date for the services received under the service tax regime? Ans. ITC is available in terms of Section 140(5) of CGST Act, 2017. Q. 35. How a service Provider can get input GST credit benefit in pure labour Contract under Input Credit? Ans. He needs to use input for furtherance of business and should fulfill the conditions mentioned in Section 16 of CGST Act, 2017. The input should not fall within the negative list provided in Section 17(5) of the CGST Act, 2017. Q. 36. GSTR-1 (Point 9) - As banks are eligible to claim only 50% of Input credit consider excluding banks from reporting of exempt/non-GST supplies in GSTR-1? Ans. Return Rules have already been notified. It is not possible to make exception for one sector. Q. 37. Clarification is sought for the following : Penal Interest on loans and advances Ans. Penal interest is a consideration for tolerating an act and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) of IGST Act? Ans. If the place of supply is in India, the registered recipient will have to pay tax under reverse charge and if the recipient is unregistered, company will pay GST in accordance with Section 14 of IGST Act. Q. 45. Whether 5% GST applicable to the Transport service provider is to be charged on the total freight amount bill? Ans. It will be on the invoice value of GTA services determined in terms of Section 15. Q. 46. Does Rental Income less than ₹ 20 Lakh per annum attract GST? Ans. No. That said, where the rental income from a single property is less than ₹ 20 lakh but the aggregate rental income from various properties exceed rupees twenty lakh, the requirement for registration and GST payment will be there. Q. 47. In reference to Section 15 of GST, CTT and STT are statutory levy under Income Tax. Is there any GST tax on another governmental Tax, SEBI Fees and Stamp Duty as per Various State Government rates? Ans. As per Section 15 the value will be inclusive of all taxes except CGST, SGST, UTGST and IGST. So all taxes will be included in the value for the purpose of GST except where benefit of Pure agent as pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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