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The objective for establishing Special Economic Zones, called as SEZ, is to increase the exports. But, how will it improve the exports, if GST is levied on such SEZs?


GST will not be levied on the supplies made to an establishment functioning in Special Economic Zone or to the one which establishes the Special Economic Zone.  Such transactions will be deemed as zero rated supplies. Therefore, there is no impact on those establishments in the Special Economic Zone. This will not affect the exports also.

Question: 2

We propose to apply for GST afresh. Please explain the procedures.


You can apply through the website www.gst.gov.in for GST New Registration, at free of cost.  You have to apply online through the form GST (R.E.G-1). You shall get the registration within three working days from the date of applying. In case of any defects in your application, rectify the same and you can obtain the registration within 20 days from the date of applying after rectification.

Question: 3

If we supply under warranty free of cost the spare parts for the damaged one of those products sold before GST, will GST be levied for such transaction?


As you are providing the spares free of cost under warranty, GST will not be levied.  But you cannot avail the input tax credit on the spares provided at free of cost..

Question: 4

I am dealing in textile manufacturing.  After procuring yarn at 18% tax, I sell garments made out of that yarn at the rate of 5% tax. While assessing my annual transactions, the 18% tax remitted while procuring will be a big sum. Can we get that (18% tax) as refund?


Under some exceptional circumstances, the percentage of tax will be more on procurement and will be less on sales. You can avail Input Tax Credit on the tax paid at the time of procurement. But you cannot get it back as refund. It will be in your GST account as ITC. You can use it at any time for remitting the tax.

Question: 5

Is there any percentage of tax to consumers and establishments separately in GST as is there in Income Tax Act.?


The GST Act is an Indirect Tax Structure. It is levied unbiased at the same percentage nation-wide on goods under the principle ONE NATION ONE TAX. Therefore, there is no discrimination for consumer and establishment in this Act as is there in Income Tax Act.

Question: 6

We are procuring firewood, which is used for fuel, in wholesale from various villages and supplying them to various places in Tamilnadu. Our annual total sales turnover will be around Rs.30-35 lakhs. For this, how much percentage of tax is to be collected?


There is an exemption from GST for the firewood which is used for fuel. If you are a person selling the exempted goods only in the same State (Tamilnadu) where procured, you need not register for GST. 

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