I am buying and selling
spares for bi-cycles. For this how much
percentage is to be levied? Is it 12% or 28%?
The GST will be levied
at the rate of 12% for the spare parts of bi-cycles without motors and at the
rate of 28% for the spare parts of bi-cycles with motors.
I am a VAT consultant.
My client is engaged in a wholesale trade in his name. Moreover, he has set up
a commercial complex in his name and let it for rent. His annual income will be
around Rs.50 lacs. Now, can he opt for composite tax scheme?
If the above referred
registered person as said by you, is engaged only in trade, he can opt for
composite tax scheme. But, since he is
engaged in the service of letting his commercial building for rent, he cannot
opt for composite tax scheme. He must collect GST under normal scheme and remit
it to Government.
of GST, since the service tax for the tax invoice was not remitted, we have not
availed the Input Tax Credit related to it. Now, after GST implementation,
shall we avail the input tax credit for the service tax as a benefit on GST?
Yes, you can avail. If
the referred service tax had been remitted before September 30, 2017, you can
avail the ITC on the service tax as CGST ITC.
Will the ITC on the VAT
and Service Tax come in the GST web portal automatically, since we have
registered under migration or will come only upon filing the GST TRAN-1 form?
The ITC on the taxes
which were already in existence, will be available only upon filing the GST
If banks and financial
institutions remit tax under reverse charge basis, will they get the benefit of
ITC on such taxes?
Generally, for banks
and financial institutions, there will be Input Tax Credit of only 50% on the
tax amount remitted. For the tax remitted under reverse charge basis also, they
can get only 50% as ITC.
If a person does provide
both taxable and non taxable services, what arrangements are to be done to
The person, who renders
both taxable and non-taxable services, must maintain books of accounts for both
of his services separately. If done so,
he can avail the ITC fully on the tax for the taxable services.
We are supplying to our
service man the capital goods of machinery and related spare parts. By doing
so, our production is increasing. If we supply such capital goods of machinery
and spare parts, shall we avail ITC?
Even if you supply the
capital goods of machinery to your service man, you can avail the ITC fully on
the same. There is a condition that such machinery should have been got back
within three years from the date of supply to the service man.
We propose to expand
our factory. Therein, we propose to construct an executive office. Is there any
ITC for this?
Input tax credit cannot
be availed on the amount remitted as tax while constructing immovable property
such as executive office building.
Whereas if you construct workshops in the factory building, you can
avail 100% ITC on the tax remitted for them.