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TMI BlogGST — FAQ on Food Processing dated 31-07-2017X X X X Extracts X X X X X X X X Extracts X X X X ..... fferent States are considered as distinct persons. Further, as per Schedule I, this constitutes supply made in the course or furtherance of business between distinct persons even if made without consideration. As it is an inter-State supply, the registered person is required to pay IGST. Question 3 : A registered person is supplying manufactured food products to another person. Transportation charges are required to be paid by the supplier but are actually paid by the recipient. Whether this transportation charges would be added in the supply value? Answer : If the supplier is liable to pay any amount in relation to a supply, such amount would be a part of transaction value, even if the same has been paid by the recipient. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not admissible in case of machinery, being capital goods. As per Section 140(5) of the CGST Act, 2017, credit of eligible duties and taxes in respect of only inputs/input services in transit during transition from Pre-GST to Post-GST is allowable. This is subject to the condition that the tax on such supply is paid under the existing law and the recipient records this receipt in his books of accounts within thirty days of the appointed day. Question 8 : Is Atta/Maida/Besan supplied in bulk liable to tax under GST? Answer : Outward supply of these goods if effected without registered brand name is exempt under GST. However, if the outward supply is made under a registered brand name and put up in unit container then it would be li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elf registered. That said, for making inter-State purchases one is not mandatorily required to be registered. (iii) 90% of my turnover will of un-branded rice, while 10% only will of branded one. Can I sell both of them in one invoice? Answer : As per Invoice Rules, a registered person supplying taxable goods is required to issue a tax invoice and in case of exempted goods, he is required to issue a bill of supply. As all the contents of bill of supply are included in the tax invoice, a separate bill of supply need not be issued in case of the exempt component. Thus, both branded and unbranded rice can be included in one invoice. (iv) As an un-registered taxable person now, am I required to furnish information like ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in stock must qualify as input and that the tax paid at the time of its purchase must qualify as input tax under GST. Any goods which have been capitalised in the books of account will not be treated as an input. Hence credit on computers will not be available if the value of the same has been capitalized in the books of accounts. Further, in terms of section 18(1)(b) of the CGST Act, 2017, taxes paid on accounting software which were acquired before registration will not be available as credit since credit is not available in respect of services in such cases. Other than that, credit shall be available on CGST/SGST paid on packing materials, etc. subject to conditions and restrictions spelt out in sections 16 to 18 of CGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Is place of supply required to be mentioned in the tax invoice for local sales also? No. Under Rule 46(b) of the CGST Rules, 2017, the place of supply along with the name of the State is required to be mentioned in case of an inter-State supply only. Question 10 : Caterpillar is a restaurant cum bar in Kolkata. It has successfully migrated to GST. While the first floor area of the restaurant is air conditioned and supplies food as well as liquor, the ground floor serves only food and is non-air-conditioned. Caterpillar wants to know, : (i) Whether they will charge GST @ 12% on supplies made from ground floor or 18%? Answer : Tax will have to be charged @ 18% irrespective ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er they can opt for composition (last year their turnover was more than rupees one Crore)? Answer : No. they are not eligible for composition levy as they are also supplying liquor. (vii) Can they issue separate series of tax invoices for their supplies from first floor, ground floor and takeaway counter? Answer : In accordance with the provisions of Rule 46(b) of the CGST Rules, 2017 the tax invoice need to be serially numbered not exceeding sixteen characters, in one or multiple series. As such, they can issue different series of tax invoices as stated but it must conform to the requirements as given in the said rule. Note : Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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