CBEC releases a short FAQ of 100 tweets

CBEC released a short FAQ of 100 tweets received and answered by Govt’s tweeter handle – ‘askGST_GOI’, covering various aspects like registration, refund, cess, composition scheme, exports, returns, invoices and transition.

Below we have given some of those tweets and also attached the entire document which contains all the 100 Question and Answers.

On a query whether a company would require to take registration in the State where an event is held, Govt. clarifies that registration in the latter State would be needed only if company provides any supply, else registration in State where company is located is sufficient and IGST can be paid on supplies made therefrom.

Supply to SEZs is zero rated while supplies by SEZs are treated as imports and present procedure of payment of duty shall continue with variation that IGST would be levied in place of CVD.

CGST and SGST credit for a State can be utilized for payment of respective CGST / SGST liabilities within that State for the same GSTIN only.

On a query whether construction material can be moved to builders on delivery challan and tax invoice issued post completion of activity, Govt. clarifies, “If the goods are meant to be supplied in the course of construction an invoice is necessary. If the goods are tools which are to be used for construction then delivery challan should be issued.”.

It has been decided that Rs. 5000/- per day exemption will be given in respect of supplies received from unregistered person, for supplies above this amount, a monthly consolidated bill can be raised.

Neither salary to Partners by Partnership Firm nor stipend ot interns will be liable to GST. A trader can take deemed ITC on stock of goods purchased from unregistered manufacturer, subject to satisfaction of other prescribed conditions.

Closing balance of Education Cess and Secondary Higher Education Cess prior to March 1, 2015 cannot be carried forward in GST as it is not covered by definition of “eligible duties and taxes” u/s 140 of CGST Act.

As to applicability of IGST on high seas sales (first on high seas sales and second on customs clearance), Govt. clarifies that IGST would be levied only once on imports.

Lastly, clarifies that “the tweets received or the replies quoted are only for educational and guidance purposes and do not hold any legal validity.

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