GST:QUESTIONS AND ANSWERS - 17:10:2017

QUESTION 1

We are preparing students for Art and Painting professions. For this, we are conducting training classes.  We are receiving around Rs.750-1000/- towards fees for training. Should we register for GST? Is there any special concession?

Answer

If an establishment, who has obtained exemption from Income Tax Department, is engaged in this service, there is an exemption from GST to it. (Example – any Charitable Trust).  If other persons provide such service, 18% GST must be collected for it. Only the registered persons can collect the tax.

QUESTION 2

We are bringing the agricultural equipments through Lorry to our Factory for transport.  Should we remit tax for lorry freight under reverse charge basis? 

Answer

Generally, a registered person, while paying lorry freight for transport, must remit tax under reverse charge basis. But, since you are bringing agricultural equipments,  there is an exemption from GST for it. Hence, you need not remit tax under reverse charge basis.

Question 3

We have a lodge. Per day rent is around Rs.750/- to 900/-. Should we register for GST? Is there any concession for it?

Answer

If the rent in your lodge per day is less than Rs.1000/-, there is no need to levy GST for that. Since the rent amount per day is less than Rs.1000/- you need not register for GST.

Question 4

We are having a restaurant.  There is an air-condition facility also in it.  A non air-conditioned hall is also there. We are selling food items to the customers through parcel. How much tax should we collect?

Answer

This is a controversial question. We are also expecting a clear circular from Government. As per the existing GST rules, you must collect 18% GST even if a portion of restaurant is air-conditioned. This is applicable to your sales made through parcels also. Non air-conditioned restaurants must collect 12% tax.

Question 5

We are engaged in the service of repairing and fixing air-conditions machines.  To us also, will the maximum limit of Rs.20 lacs for registration be applicable?

Answer

The maximum limit of Rs.20 lacs for the registration will be applicable to all those engaged in trade/business. When your annual income exceeds Rs.20 lacs, GST registration must be obtained.

Question 6

I am an agent in real estate business. I am running an establishment for it. For the transaction of real estate business, what percentage of tax must be levied?

Answer: