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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.

Question 3

Before implementation 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.


Question 4

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 TRAN-1 form

Question 5

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.

Question 6

If a person does provide both taxable and non taxable services, what arrangements are to be done to avail ITC?


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.

Question 7

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.


Question 8

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.



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