GST:QUESTIONS AND ANSWERS - 21:07:2017

QUESTION 1:

I am cultivating cashew nuts and selling to the wholesalers. My total annual sales turnover is around Rs.25 lacs to Rs.30 lacs. Is there GST for Cashew nuts? Should I register?

Answer:

For Cashew nuts, 5% GST is applicable. As a cultivator, you need not collect the tax.  The wholesaler who has registered with GST can pay the GST to the Government at the time of procurement under reverse charge basis and avail himself of the input tax credit.

Question: 2

We are exporting tea. We have engaged agents in foreign countries. Should we pay GST under reverse charge basis when we pay commission to them?

Answer:

Generally, if the service provider is in a foreign country and the receiver of services is in India, for such transactions, the receiver of service in India must pay tax under reverse charge basis. But the service provided by the foreign agents, as you mentioned, will not be considered as service provided in India. Therefore, there is no reverse charge basis.

Question:3

Whether a person can modify at the time of payment, if he has wrongly paid SGST or CGST instead of IGST?

Answer:

It cannot be modified. The amount due to paid under IGST must be remitted. Then he can apply for refund.

Question 4

Under GST Act., what is E-ledger?

Answer:

Electronic Ledger or E-ledger is the status report of a registered tax payer for theng cash transactions and input tax credit. Moreover, there will be E tax report for each tax payer.  If a tax payer is registered in GSTN Web-portal, two electronic ledgers (cash and input tax credit ledgers) and E-Tax report will be generated automatically.  They will be available in our computer dash board and  will be visible always.

Question 5

Can the GST be paid in installments? Will there any adverse effect, if only returns are filed without payment of GST?

Answer

Tax cannot be paid in installments. Filing returns without payment of tax will not be taken into account.

Question 6

We are engaged in construction business. We have made builders’ agreement before the implementation of GST. Now, should we collect GST while billing?

Answer:

Yes. You should collect GST as you are billing after implementation of GST.