GST stands for Goods and Services Tax. GST will be a single destination based consumption tax that will replace existing taxes, including CENVAT, Octroi, Sales Tax, and Excise Duty, etc. Unlike the old tax structure, where the state of origin received tax revenue, in the new GST model the state in which goods and services are consumed is the state that will receive the revenue.
In order to clear doubts which arises in the mind of public for Input Tax Credit, Return, and Invoice under GST, a list of frequently asked question is prepared which is as given below:
Input Tax Credit: Question 1 : Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize for payment of SGST in Madhya Pradesh?
Answer: SGST of one State cannot be utilized for discharging of output tax liability of another State.
Question 2 : How one can use SGST credit for the payment of IGST on another state?
Answer: SGST Credit can be used for payment of IGST liability under the same GSTIN only.
Question 3 : Can one State CGST be used to pay another state CGST?
Answer: The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities within that State for the same GSTIN only.
Question 4 : In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?
Answer: Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.
Question 5 : Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Answer: Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
Question 6 : How will the credit / debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Answer: Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR2 provides for reporting of same by the recipient.
Invoice
Question 1 : A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?
Answer: In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.
Question 2 : Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
Answer: There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.
Question 3 : All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?
Answer: All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.
Question 4 : Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?
Answer: 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 then delivery challan should be issued.
Question 5 : How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Answer: The supplier may issue credit note to the customers.
Question 6 : Should we issue Self Invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Answer: For RCM liabilities tax invoice has to be issued on self.
Return
Question 1 : What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance
Answer: Advance refunded can be adjusted in return.
Question 2 : Do registered dealers have to upload sale details of unregistered dealers also in GST?
Answer: Generally not. But required in case of inter-State supplies having invoice value of more than Rs 2.50 Lakhs.
Question 3 : How to incorporate two supplies in return for Pharma with same HSN code of four digits but having different tax rates?
Answer: Returns provide for furnishing rate wise details.
This FAQ is only for educational and guidance purposes and do not hold any legal validity. For complete details (law, rules, notifications and other information) please refer to the CBEC website (www.cbec.gov.in)
In order to clear doubts which arises in the mind of public for Input Tax Credit, Return, and Invoice under GST, a list of frequently asked question is prepared which is as given below:
Input Tax Credit: Question 1 : Is SGST of Rajasthan charged by supplier on purchase from Rajasthan can be utilize for payment of SGST in Madhya Pradesh?
Answer: SGST of one State cannot be utilized for discharging of output tax liability of another State.
Question 2 : How one can use SGST credit for the payment of IGST on another state?
Answer: SGST Credit can be used for payment of IGST liability under the same GSTIN only.
Question 3 : Can one State CGST be used to pay another state CGST?
Answer: The CGST and SGST Credit for a State can be utilized for payment of their respective CGST/SGST liabilities within that State for the same GSTIN only.
Question 4 : In case of service supplied, should the credit be given to the state where it is billed or the state it is rendered?
Answer: Tax will be collected in the State from which the supply is made. The supplier will collect IGST and the recipient will take IGST credit.
Question 5 : Company is engaged in manufacturing of cement & power. Which rule to be referred for reversal of credit related to power business?
Answer: Detailed rules for reversal of ITC when the supplier is providing exempted and non-exempted supplies have been provided in ITC Rules.
Question 6 : How will the credit / debit note from unregistered supplier be reported to GSTN and ITC claimed in the same?
Answer: Like invoice, credit/debit notes on behalf of unregistered person will be given by registered person only. Further, GSTR2 provides for reporting of same by the recipient.
Invoice
Question 1 : A shop sells taxable & exempt products to the same person (B2C), is it required to issue tax invoice and bill of supply separately?
Answer: In such a case the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.
Question 2 : Do registered dealers have to record Aadhaar/PAN while selling goods to unregistered dealers?
Answer: There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.
Question 3 : All expenses like freight / transport / packing which are charged in Sales Invoice are taxable in GST? How to charge in bill?
Answer: All expenses will have to be included in the value and invoice needs to be issued accordingly. Please refer to Section 15 of CGST Act and Invoice Rules.
Question 4 : Can we move construction material to builders on delivery challan and issue tax invoice post completion of activity?
Answer: 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 then delivery challan should be issued.
Question 5 : How to treat following transaction in GST (i) Delivered supply shortages in Transit. (ii) Customer gets less quantity and pays less.
Answer: The supplier may issue credit note to the customers.
Question 6 : Should we issue Self Invoice for GST liability discharge on RCM or GST can be discharge through expenses booking voucher?
Answer: For RCM liabilities tax invoice has to be issued on self.
Return
Question 1 : What would be done on tax paid on advance receipt if advance has to be refunded in any circumstance
Answer: Advance refunded can be adjusted in return.
Question 2 : Do registered dealers have to upload sale details of unregistered dealers also in GST?
Answer: Generally not. But required in case of inter-State supplies having invoice value of more than Rs 2.50 Lakhs.
Question 3 : How to incorporate two supplies in return for Pharma with same HSN code of four digits but having different tax rates?
Answer: Returns provide for furnishing rate wise details.
This FAQ is only for educational and guidance purposes and do not hold any legal validity. For complete details (law, rules, notifications and other information) please refer to the CBEC website (www.cbec.gov.in)
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