COMPILATION OF FAQS GST SERIES 6

Transcription

1 COMPILATION OF FAQS GST SERIES 6 Below is a compilation of selective questions asked by different persons on and answered by various Experts empanelled thereon. The same is being shared as a knowledge sharing process for the benefit of all. Complied by Monika 10 th October 2018 Below is the List of top 5 Experts who have answered most Queries in this category as on the date of this Compilation S. No. Name 1 CA. Ashu Garg, Delhi 2 CA. Prakhar Bansal, Chhattisgarh, Bilaspur 3 CA. Rajesh Khandelwal, Faridabad 4 CA. Ramanjeet Singh, Delhi 5 CA. D.K. Bholusaria, Delhi S. No. Query asked by Question Answered by Answer 6.1 Sachin Kumar, Other Professional, Chandigarh 6.2 CA Preeti Mittal, CA in Practice, CA, Vikas Pur Is services render by DSA (Direct Selling Agent) to bank is liable to GST. And how a DSA will show the same in his return What are the points to be considered in respect of GST while doing Tax audit CA Rupesh Kumar Nahar, CA Prakhar Bansal, Bilaspur As per central tax (Rate) notification no.15/2018, services supplied by individual DSA covers under RCM from 27th July 2018, it means that bank will pay GST and same will be shown in GSTR-1. It s a subjective question and cannot be covered exhaustively, but broadly following points may be kept in mind: 1. Output tax liability has been accurately recorded in the books. 2. ITC has not been overbooked. 3. ITC that are ineligible or are required to be reversed have been properly dealt with. 4. Reverse charge liability has been accurately booked.

2 5. Liability as appearing in books has been paid before the due date of ITR. There may be numerous other points as well, but the above mentioned points are of major importance. 6.3 Vinod Shankar, CA, New Delhi A person is providing construction services. He will receive advance from home buyer. Whether GST will be charged on the advance received? If yes, then at which rate? CA ASHU GARG, DELHI Rate on construction services is prescribed under Notification No. 11/2017 as amended time to time. There are two rates under this notification, i.e. 18% or 12%. 18 % is general rate 12 % is in below cases: a building owned by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the mid-day meal scheme sponsored by the Central Government, State Government, Union territory or local authorities. Construction under government approved schemes. a single residential unit otherwise than as a part of a residential complex; 1. low - cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the 'Scheme of Affordable Housing in Partnership' framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; 2. low cost houses up to a carpet area 60 square metres per house in a housing project approved by the competent authority under... In all above cases, if land is also transferred, then valuation will be 2/3 of total consideration. Hence, effective rate will be 12% or 8 % respectively. There is no such other condition for above rate. 6.4 MADHURA MUKESH DALVI, CA in Job, If a builder is constructing building, how he CA ASHU GARG, DELHI Rate on construction services is prescribed under Notification No. 11/2017 as amended time to time. There are two rates under this notification, i.e. 18% or 12%.

3 MUMBAI will come to know what rate of GST he has to charged? If he charged 8%, then what eligibility he must fulfil? 18 % is general rate 12 % is in below cases : o a building owned by an entity registered under section 12AA of the Income Tax Act, 1961 (43 of 1961), which is used for carrying out the activities of providing, centralised cooking or distribution, for mid-day meals under the midday meal scheme sponsored by the Central Government, State Government, Union territory or local authorities. o Construction under government approved schemes. o a single residential unit otherwise than as a part of a residential complex; o Low cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; o Low cost houses up to a carpet area 60 square metres per house in a housing project approved by the competent authority under... In all above cases, if land is also transferred, then valuation will be 2/3 of total consideration. Hence, effective rate will be 12% or 8 % respectively. There is no such other condition for above rate. 6.5 Deepak Malhotra, CA, Mandi Gobindgarh ABS purchase a EOT crane for 20 lacs and decides to install it internally.shed had been installed. ABC ltd had to spent 25lacs on iron material which was spend on erection of shed CA Ashu Garg, Delhi As per Sec. 17(5), You are eligible to claim ITC on goods and services used for installation and erection of Plant & Machinery. Further, ITC is not allowed of goods or services or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are used in

4 6.6 Vipin Aggarwal, CA in Practice, Jaipur 6.7 Mohammed Kunda, CA in Practice, Dahod and also a major part was in erection of crane. Now i want to know how to take GST credit for the 25 lacs as it was spent on both shed and building and also on crane installation.kindly clarify on what basis the amount to be distributed on pro rata or other method so that in future there would be no dispute regarding the credit taken. Under GST interest on late payment of tax applicable on Output tax or net output tax Here 3 party one purchaser from Surat. Seller is in Ahmedabad and job worker is from Surat, Now purchaser directly moved goods from seller to job worker. Means movement in Ahmedabad to Ahmedabad. After this movement Job worker moving goods from Ahmedabad to CA Rishabh Aggarwal, New Delhi CA Rajesh Saluja, Delhi the course or furtherance of business. You have to maintain proper records and have to identify the amount of Iron, i.e. Goods used for respective purpose. There is no proportionate method provided under Law for above situation. On output tax payable. The E-way bill is to be generated by someone who causes the movement of goods. In this case there would be two E-way bills: 1. While sending goods from his factory/office to Job worker, Ahmedabad dealer would raise a "Bill to Ship to" E-way bill,. 2. Job worker would raise E-way bill while sending goods from his place to Surat.

5 6.8 Rajshree, CMA in Job, DURG 6.9 Bijesh, CA, GST, Direct Tax Surat Now how many e way bill has to be generate and who is the party required to generate this e way bill Loss in transit of raw material via Railways. Is 1% or 2% loss in transit which may occur due to normal handling loss can be consider as a normal loss under GST and we can take the ITC. Since we cannot do any recovery from railways. A private limited company whose Reg. office in Delhi and Factory cum admin office in Gurgaon. All director as well as employee sitting at Gurgaon. Director is paying remuneration from Haryana and company register in GST in Haryana only. Can GST under RCM applicable on this remuneration paid to Director. CA Rajesh Saluja, Delhi CA Prakhar Bansal, Bilaspur You can take credit of ITC, on normal loss. The blocked credit U/s 17(5),only talks about: (h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and I don't see how would you cover the normal loss in any of the instances mentioned above. In my view the word "lost" would have a different meaning than "normal loss". Director remuneration is not covered under supply in GST hence no GST payable.

6 6.10 Sohil Bardai, CA, Ahmedabad This director is a executive director of the company as well as 1% share of the company with him. Can a person engaged in business of Equity derivative/commod ities trading take input tax credit of GST paid on brokerage to brokers? CA ASHU GARG, DELHI As Equity Derivative/Commodities trading is out of GST and you are not paying any GST on your outward supply, hence you cannot claim ITC on GST paid on brokerage to brokers.