GST:QUESTIONS AND ANSWERS - 28:07:2017

QUESTION 1:

We are operating a departmental store. Our monthly sales turnover will be around Rs.5 lacs to Rs.6 lacs. For GST, should our accounts be audited at the end of the year?

Answer:

In GST Act, accounts are handled on self valuation method. To you, the audit will be applicable only if the annual sales turnover exceeds Rs.1 crore. Otherwise, your accounts need not be audited, under GST Act.

Question:2

I am operating a computer service centre in Coimbatore. Our annual sales turnover will be around Rs.18 lacs. In my name, there is a residential flat. Through this, I am receiving Rs.3 lacs as rent per year. Should I register under GST Act?. Should I collect GST for the rent I receive?

Answer:

Considering the ceiling of Rs.20 lacs specified to register for GST, you must take into account all the taxable supply and also exempted supply. Hence, you have to obtain GST registration. But you need not collect the GST tax on the rent for residential flat. Exemption has been provided to it. 

Question:3

At present, there is a case pending in Madras High Court under VAT Scheme. As the VAT levy has been cancelled, will our pending case also be cancelled?

Answer:

All the pending cases will continue to be handled under the respective Acts. There will not be any impact on your case, just because of the cancellation of VAT levy.

Question 4

We are remitting medical insurance to all the staff members of our establishment. Some persons say that input tax credit can be availed from the GST on medical insurance. Some say it cannot be. Please clarify.

Answer:

You can not avail input tax credit from the GST on medical insurance.  For this, a separate rule is there in GST Act.

Question 5

At the time of procuring the goods from the unregistered persons of other State, what percentage of tax is to be remitted under reverse charge basis?

Answer:

As per GST rules, unregistered person cannot deal in the supplies meant for other States.   Therefore, you must avoid procuring from unregistered persons of other States.

Question 6

We are operating a printing press. We are printing and supplying greeting cards to all places in Tamilnadu.  How much tax should we collect?

Answer:

On the amount billed for your services, you must collect 12% tax and remit it to the Government.