TaxTMI 
TaxTMI 
FAQ for Traders dated 16-08-2017
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.... 20 Lakhs in the financial year (but not engaged in inter-State supplies) is not required to register under GST. Q 3. Are monthly returns required to be filed by a trader not opting to pay tax under the composition scheme? Ans. Traders not opting to pay tax under composition scheme need to file returns on a monthly basis. Form GSTR-1 is to be filled for outward supplies made by the trader (made in the month for which return is being filed) by the 10th of the next month. Other parts of the return Form GSTR-2 and Form GSTR-3 are auto populated and only needs to be verified and submitted by the 15th and the 20th of the next month respectively. Q 4. What is the basic information that needs to be furnished in Form GSTR-1? Ans. The details to be entered in the return of outward supplies Form GSTR-1, made by the trader depends upon the nature of supplies made. The provisions are as follows: i) intra-State supplies to consumers (B2C supplies) - tax-rate wise summary; ii) inter-State supplies to consumers (B2C supplies) of value up to ₹ 2.5 lakhs - State-wise and tax-rate wise summary; iii) inter-State supplies to consumers (B2C supplies) of value above ₹ 2.5 lakhs - sp....
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....lies of goods; d) a supplier making any supply of goods through an electronic commerce operator who is required to collect tax at source under section 52; and Thus from traders' point of view, he should be selling the goods with in a state. In case he supplies to other states, he shall not be eligible for the scheme. The traders should not be supplying through E commerce operator in which case he will have to compulsorily register. Further in case a trader is supplying exempted goods, he need not register. It is also important to note that the trader can procure the goods from outside the State and yet he would be eligible for availing the composition scheme. Q 11. When will a trader have to pay tax? Ans. A trader, if registered under GST, will have to pay tax on monthly basis on or before 20th of the succeeding month. A person who has opted for composition levy will have to pay tax on quarterly basis on or before 18th of the month succeeding the quarter relating to supplies. Q 12. A person availing composition scheme during a financial year crosses the turnover of ₹ 75 Lakhs/Rs. 50 Lakhs during the course of the year i.e. say he crosses the turnover of ₹ 75 Lakh....
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.... in Form GSTR-4. The GSTR-4 needs to be filed electronically on the GSTN common portal by the 18th day of the month succeeding the quarter relating to the supplies. Q 17. What is the basic information that need to be furnished in Form GSTR 4? Ans. It should contain details of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable on reverse charge basis in case of purchases made from unregistered persons and tax payable. Q 18. A person opting to pay tax under the composition scheme receives inputs/input services from an unregistered person. Will the composition dealer have to pay GST under reverse charge? If yes, in what manner? Ans. Yes. Tax will have to be paid on supplies received from unregistered persons by the composition dealer under reverse charge at normal rates and not composition rates. The tax can be paid by the 18th day of the month succeeding the quarter in which such supplies were received. The information relating to such supplies should by shown by the composition dealer in Table 4 of Form GSTR 4. In respect of other notified supplies in which GST is chargeable on reverse charge basis, the composition dealer will h....
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....ce outside India or received from his branch situated outside the State or from his agent or principal outside the State; (c) the goods held in stock by him have not been purchased from an unregistered supplier and where purchased, he pays the tax under reverse charge mechanism; (d) he shall pay tax under reverse charge mechanism where he purchases goods or services from an unregistered person; (e) he was not engaged in the manufacture of notified goods namely icecream and other edible ice, pan masala and tobacco and manufactured tobacco products; (f) he shall mention the words "composition taxable person, not eligible to collect tax on supplies" at the top of the bill of supply issued by him; and (g) he shall mention the words "composition taxable person" on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business. Q 23. What is the validity of composition levy? Ans. The option exercised by a registered person to pay tax under composition scheme shall remain valid so long as he satisfies all the conditions mentioned in section 10 of CGST Act, 2017 read with Chapeter II of the CGST Rules,....
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.... Transfer Document is issued is in possession of such manufactured goods in the form in which it was cleared by him (on 1st July 2017). (e) Credit Transfer Document shall be issued upto 30th July 2017 and copy of the corresponding invoices shall be enclosed with the Credit Transfer Document. (f) Copies of all invoices relating to buying and selling from manufacturer to the dealer, through intermediate dealers, is maintained by the dealer availing credit using CTDs. (g) CTD shall not be issued in favour of a dealer to whom invoice was issued for the same goods before the appointed date. (h) A dealer availing credit using Credit Transfer Document on manufactured goods shall not be eligible to avail credit under provision of rule 117 (4) of the CGST Rules, 2017 on identical goods manufactured by the same manufacturer available in the stock of the dealer. (i) The dealer availing credit on the basis of Credit Transfer Document shall, at the time of making supply of such goods, mention the corresponding Credit Transfer Document number in the invoice issued by him under section 31 of the CGST Act, 2017. Q 26. Traders are presently not entitled to take cenvat credit. They will be hav....
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.... e) The returns and payment of tax process under GST is completely online. There will be minimal interface or no interface with the tax authorities. f) Small taxpayers can use the services of GST practitioners at a nominal cost to take care of their compliances under GST. g) GST Suvidha providers (GSPs) will be providing easy to use applications which will provide an interface with the GST network for easy and smooth compliances under GST. h) Strict time lines have been prescribed which shall be adhered to by all proper officers. Registration will be given in 3 working days if the documents are in order. In case no response in received from the proper officer within 3 days, registration shall be deemed to be granted. i) Application for refund will be completely online with minimal interface with the tax officer. Acknowledgment of refund claim will be given in 15 days and the claim will be processed in 60 days failing which interest will be paid. For Exports, provisional refund up to 90% of the claim will be sanctioned upfront without any verification. The amount of refund will be directly credited to beneficiary's bank account. Q 28. Stock transfers have been made taxable in ....