GST:QUESTIONS AND ANSWERS - 01:08:2017

QUESTION 1:

Are the export procedures simplified after the implementation of GST?

Answer:

Yes. At present, the procedures to do exports have been simplified. The procedures for registration of documents are also simplified.  Now, it is not needed to file the documents such as ARE-1, ARE-2, which are required to be filed earlier.  It is enough to have only shipping bill.

Question: 2

It is said that GST registration must have been obtained if supplies are to be made to the establishments in Special Economic Zone i.e. SEZ. Please clarify.

Answer:

Special Economic Zones are having a separate recognition.  The supplies made to Special Economic Zones will be treated at par as a supply to other states. Therefore, GST registration is must for such transactions, since a registered person only can engage in the supplies to Other States.

Question: 3

We are importing goods from Foreign Countries. We re-export such goods to other countries. Prior to the implementation of GST, there was a privilege of duty draw back on such transactions.  Will the privilege continue even after implementation of GST?  Can we avail such privilege if the goods, purchased before GST, are re-exported after implementation of GST?

Answer:

All the privileges which were available before the implementation of GST will continue to be available.  The privilege of duty draw back will also continue even after the implementation of GST.  The amount paid as combined GST and Compensation Cess can be got back as refund.

Question: 4

I am operating a restaurant.  If I opt composite tax scheme, should 5% CGST and 5% SGST tax be remitted?

Answer:

If a person operating the restaurant is opting composite tax scheme, it is enough to remit only a total privilege tax of 5%.  That tax percentage has to be divided as 2.5% for CGST and 2.5% for SGST and to be remitted.

Question: 5

I am a working in a software company.  I propose to sell my car for Rs.4 lacs. Is there GST on this? If my company purchases this car, should the company remit tax for that?

Answer:

Such transaction will not be treated as the one done during the course of the business or for promotion. Hence there is no GST. Your company need not pay the tax even if it purchases the car from you.

Question: 6

We are manufacturing the goods by our establishment in Tamilnadu. We sell the goods of ours and of others separately. Now, should we register for GST separately for the manufacturing and sales? 

Answer:

You need not obtain two registrations.  You can obtain a single GST and then engage in all the supplies viz., manufacture, sales and service etc.,

Question:7

I have opted for composite tax scheme. Shall I continue in the composite scheme till the year end when my annual sales turnover exceeds Rs.75 lacs?

Answer:

You cannot continue.  You will be switched over to normal tax scheme when your annual sales turnover exceeds Rs.75 lacs.