FAQ’s on GST
1. What Taxes will be charges in an Invoice under GST
Every Dealer or Service Provider will charge GST at the rate of tax applicable to that product or service on the sale price. Every Dealer will Charge CGST and SGST both, or only IGST or UTGST. Let’s understand the scenario in which these taxes will be charged.
Let’s assume the rate of tax applicable to a product or service is 18%.
Scenario-1
If a Dealer Sells Goods or Provides Service to a Customer who is in the same state as the dealer, he will charge CGST @ 9% and SGST @ 9%.
Scenario-2
If a Dealer Sells Goods or Provides Service to a Customer who is in another state, he will charge IGST @ 18%.
Scenario-3
If a Dealer Sells Goods or Provides Service to a Customer who is in a Union Territory (Andaman and Nicobar, Daman and Diu etc.), he will charge UTGST @ 18%.
2. Which are the taxes subsumed in GST?
The GST would replace the following taxes:
Central Taxes –
• Central Excise duty
• Duties of Excise (Medicinal and Toilet Preparations)
• Additional Duties of Excise (Goods of Special Importance)
• Additional Duties of Excise (Textiles and Textile Products)
• Additional Duties of Customs (commonly known as CVD)
• Special Additional Duty of Customs (SAD)
• Service Tax
• Central Surcharges and Cesses so far as they relate to supply of goods and services
State Taxes –
• State VAT
• Central Sales Tax
• Luxury Tax
• Entry Tax (all forms)
• Entertainment and Amusement Tax(except when levied by the local bodies)
• Taxes on advertisements
• Purchase Tax
• Taxes on lotteries, betting and gambling
• State Surcharges and Cesses so far as they relate to supply of goods & services supply of goods and services
3. What if the dealer migrated with wrong PAN as the status of firm was changed from proprietorship to partnership?
New registration would be required as partnership firm would have new PAN.
4. Can we use provisional GSTIN or do we get new GSTIN? Can we start using provisional GSTIN till 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 & final GSTIN would be same.
5. Whether civil contractor doing projects in various states requires separate registration for all states or a single registration at state of head office will suffice?
A supplier of service will have to register at the location from where he is supplying services.
6. When is registration in other state required? Will giving service from Nasik to other state require registration in other state?
If services are being provided from Nasik then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.
7. I have enrolled in GST but I forgot to enter SAC codes. What should I do?
The status is migrated. The same can be filled while filing FORM REG-26 for converting provisional ID to final registration.
8. I have ST number on individual name and have migrated to GST. I wish to transfer this on my proprietorship firm.
This conversion may be done while filling FORM REG-26 for converting provisional ID to final registration.
9. Please tell if rental income up to 20 lacs attracts GST or attracts any other charge?
GST is leviable only if aggregate turnover is more than 20 lacs. For computing aggregate supplies turnover of all supplies made by you would be added.
10. If someone trades only 0% GST items (grains, pulses) then is it necessary to register for GST, if the turnover exceeds 20 lacs?
A person dealing with 100% exempted supply is not liable to register irrespective of turnover.
11. If I register voluntarily though turnover is less than 20 lakhs, am I required to pay tax from 1st supply I make post registration?
Yes, you would be treated as a normal taxable person.