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GST:QUESTIONS AND ANSWERS - 26:08:2017

QUESTION 1:

I am operating a Xerox Copy Center and Western Union Money Transfer Service Center. Our total transaction amount will be around Rs.3 crores.  For this amount, there will be a commission of Rs.75000/-.  To me, is there GST? Should I register for GST?. If so, how much percentage should be collected?

Answer:

As per GST Act, separate rule is there to assess the value of the supply made by the persons engaged in Foreign Exchange transactions. Under Forex Transactions, the difference between the value of purchase and sale of foreign currencies will be deemed as supply. Hence, you need not register for GST.

QUESTION 2:

We have obtained GST registration. While procuring goods from unregistered persons, should we obtain Aadhaar number and PAN number from them?

Answer:

As per GST Act, there are no such regulations. You need not obtain details such as Aadhaar number and PAN number.

Question: 3

We are manufacturing handmade wax match boxes and selling the same.  We sell following our policy of “5 bundles free if 100 bundles are procured”. While preparing invoice, should the value of free bundles be deducted after totaling the   rate of free bundles and GST on them or to levy GST on the amount after deducting the value of free bundles? 

Answer:

While raising invoice, the GST is to be levied on the amount after deducting the value of the free items. For the free supplies, there is no levy of tax.

Question 4:

We are engaged in construction business activities in various States on contract basis. We do not have any office in Other States.  As GST is implemented now, should we register for GST separately for each and every State? Or is it enough to have Single Registration at Head Office?

Answer:

Service provider should register from his place of service. For your transactions, there is no need to register in all the States. It is enough to register in the State where there is Head Office. While providing your service, you must collect Integrated Goods and Services Tax (IGST) and remit it.

Question 5:

For our VAT return pertaining to June 2017, there is no input tax credit. But we are having stock on hand for Rs.20 lacs. For this stock, can we avail 40% GST (as ITC)?

Answer:

Under GST Act, the benefit of Input Tax Credit depends on your VAT returns.

Question 6:

We are procuring only vegetables in whole sale and supplying to the retailers. On vegetables, zero percentage of GST is levied.  Our annual turnover will exceed Rs.20 lacs. Should we register for GST?

Answer:

Since you are selling zero percentage tax goods i.e. exempted goods only, there is no need to register for GST.

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