GST:QUESTIONS AND ANSWERS - 15:09:2017

QUESTION 1

For our Office, a service provider is supplying water through lorry. For each supply, they are charging Rs.1500/- and per month they are billing from Rs.25000 to Rs.30000/-. Will there be reverse charge tax for this?

Answer

For water supply there is no GST. Hence you need not remit tax under reverse charge basis.

QUESTION 2

What is B2B Supply? What is B2C Supply? Please Explain. Is there any input tax credit benefit?

Answer

B2B supply means a supply made by a trader to another trader. That is Business to Business. If the supply is made by a trader to a consumer, it will be called B2C that is Business to Consumer. Under B2C supply method, there will be input tax credit.

QUESTION 3

What is the difference between UTGST and IGST? When to levy UTGST? There is a confusion about this. Please explain.

Answer:

When engaged in supply within Tamilnadu, CGST and SGST must be levied. If engaged in supply to the areas of Union Terrritory, then CGST and UTGST must be levied. There is no need to bother about UTGST since you are engaged in sales within Tamilnadu.  For supplies to Other States, Integrated GST must be levied.  A supplier, in whatever State he is located, must levy IGST when engaged in Other State supply.

QUESTION 4

In GST, when registering for New Registration, can the composition tax scheme be opted or can it be opted only by those who are already under Composition Scheme?

Answer:

Composition tax scheme can be opted when registering for new registration. It is wrong to say that only those who are already under this scheme can join under composition tax scheme.

QUESTION 5

While importing capital goods from Foreign Countries now, we receive them at Zero Duty as allowed under EPCG (Export Promotion Capital Goods) Scheme. Will there be any change in this, after implementation of GST?

Answer:

Under GST Rules, for such imports, IGST will be levied.  You can avail Input Tax Credit on the tax after remitting it or you can apply for refund and get it back from the Government.

QUESTION 6

If the same person had obtained GST registration in two different states, can he opt for Composition Tax scheme in one state and normal tax scheme in other state?

Answer: