Q1. What is GST?
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017.
Q2. Can one start using provisional GSTIN ( GOODS AND SERVICES IDENTIFICATION NUMBER) till a new one is issued?
Yes, provisional GSTIN can be used till the final GSTIN is issued.
Q3. Is separate registration required for trading and manufacturing by the same entity in one state?
Yes, there will be only one registration per state for all activities.
Q4. How long can one wait to register for the GST?
An unregistered person has 30 days to complete its registration formalities from
its date of liability to obtain registration.
Q5. If an entity wishes to re-register under GST, when can it do so?
Entity should be able to apply for new registration at the GST Portal gst.gov.in
from 25th June, 2017.
Q6. How can one use SGST (STATE GOODS AND SERVICE TAX) credit for the payment of IGST (INTEGRATED GOODS AND SERVICE TAX) in another state?
SGST Credit can be used for payment of IGST liability under the same GSTIN
Only.
Q7. Do registered dealers have to record Aadhaar/PAN while selling goods to
unregistered dealers?
There is no requirement to take Aadhaar/PAN details of the customer under the
GST Act.
Q8. All Expenses like freight/transport/packing which are charged in Sales invoice are taxable in GST? How to charge a bill?
expenses will have to be included in the value and invoice needs to be issued
Accordingly.
Q9. Please tell if rental income upto 20 lacs attracts GST or attracts any other
charge?
GST is to be levied only if aggregate turnover is more than 20 LACS. (Rs. 10 lacs in 11 special category states). For computing aggregate supplies turnover, all supplies made by an entity would be added.
Q10. A taxable person’s business is in many states. All supplies are below 10 Lakhs. He makes an Inter State supply from one state. Is he liable for registration?
He is liable to register if the aggregate turnover (all India) is more than 20 lacs (Rs. 10 lacs in Special Category States) or if he is engaged in inter-State supplies.
Q11. 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.
Q12. What are the consequences if a trader fails to pay GST?
If you don’t file any GST return then subsequent returns cannot be filed. For example, if the GSTR-2 return of August is not filed then the next return GSTR-3 and subsequent returns of September cannot be filed. Hence, late filing of GST return will have a cascading effect leading to heavy fines and penalty.
An offender not paying tax or making short payments must pay a penalty of 10% of the tax amount due subject to a minimum of Rs. 10,000.Consider — in case tax has not been paid or a short payment is made, a minimum penalty of Rs 10,000 has to be paid. The maximum penalty is 10% of the tax unpaid.
Q13. What are the prosecutions under GST?
The prosecution is conducting legal proceedings against someone in respect of a criminal charge.
A person committing an offense with the deliberate intention of fraud, becomes liable to prosecution under GST, i.e., face criminal charges. A few examples of these offenses are-
Issue of an invoice without supplying any goods/services- thus taking input credit or refund by fraud
Obtaining refund of any CGST/SGST by fraud
Submitting fake financial records/documents or files, and fake returns to evade tax
Helping another person to commit fraud under GST