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We have engaged agents in other states to sell our goods. If we send the goods to those agents to sell, will there be GST on it?


Yes, even if you send the goods to the agents, GST is to be levied on them. Since you send the goods to Other States, you have to levy Integrated Goods and Services Tax (IGST).

Question: 2

We have permitted to erect a mobile phone tower on our building terrace and we are collecting rent.  Is there GST for this? If so, how much percentage is to be collected? There is no other income to us.


If the amount so collected as rent is less than Rs.20 lacs in a year, you need not collect GST. If it exceeds the said limit, you must register for GST, collect 18% tax and remit it to the Government.


If a person opts for composite tax scheme violating the rules, what will be the legal consequences to it?


If the tax remitter, knowingly well that he is not eligible for Composite Tax Scheme and remits the tax under that scheme purposely, he is liable for punishment.  Moreover, there are guidelines to determine Fine and Penalty in the Act.

Question: 4

What are the documents to be maintained by a person registered for GST?


Each registered person should maintain the following documents at their primary place of business.

a.     The details on goods manufactured or prepared

b.     The details on supplies of goods or services

c.      The details on purchases of goods or services

d.     The details on stock in hand

e.      The details on Input Tax credit for the goods or services

f.       The details on tax remitted or to be remitted

The accounts related to the above details must be maintained in true and genuine manner. On an average, such books of accounts must be kept for a period of six years.

Question 5:

The restaurants, in the Special Economic Zones too, are collecting GST. Previously there was a tax exemption to it. Will it not affect the special economic zones?


 If the restaurants in Special Economic Zones supply food to an establishment in SEZ, GST will not be levied on it. But, if a separate canteen is set up and   selling of foods to consumers is taking place, then GST is to be collected on it. This stand will not affect the Special Economic Zone in any manner.

Question: 6 

Is there any time frame to apply to get back the refund amount?


Yes.  The applications requesting refund may be filed within two years from the date of transactions.

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