Appearing on Rediff Chat, G Srikanth, partner in GSV Associates, Chartered Accountants, Chennai, and member of the Institute of Cost and Management Accountants, answered readers' queries on the Goods and Services Act.
Illustration: Dominic Xavier/Rediff.com
G Srikanth
Good Afternoon Friends! I am ready to do the Chat on GST. Let's get going!
Good Afternoon Friends! I am ready to do the Chat on GST. Let's get going!
SUNDAR RAJ
Q: Reg.Anti profiteering clause. I buy 6 raw materials and make 3 different products from them. Among 6, one raw material's input cost to me is reduced because of GST. Should I pass on the benefit to my customer, who is not end consumer? What is the formula to calculate how much I have to reduce price of my product?
Q: Reg.Anti profiteering clause. I buy 6 raw materials and make 3 different products from them. Among 6, one raw material's input cost to me is reduced because of GST. Should I pass on the benefit to my customer, who is not end consumer? What is the formula to calculate how much I have to reduce price of my product?
G Srikanth
Ans: Hi, the Anti profiteering provisions will give rise to good amount of confusion. As per the GST law, you need to pass on the benefit of both - lower rate of GST as well as the input credit that you enjoy under GST, which you did not enjoy in the old regime.
Ans: Hi, the Anti profiteering provisions will give rise to good amount of confusion. As per the GST law, you need to pass on the benefit of both - lower rate of GST as well as the input credit that you enjoy under GST, which you did not enjoy in the old regime.
Ramesh Panditaradhya
Q: To whom we are to answerable and file our returns GST-Excise Dept or GST-Sales tax dept, and if I am a small trader with whom I should file my monthly return?
Q: To whom we are to answerable and file our returns GST-Excise Dept or GST-Sales tax dept, and if I am a small trader with whom I should file my monthly return?
G Srikanth
Ans: Your returns have to be filed electronically through the GSTNPortal. Excise and Sales Tax are no longer there.
Ans: Your returns have to be filed electronically through the GSTNPortal. Excise and Sales Tax are no longer there.
Jjpl Ags
Q: Can manual invoicing be done under GST? Today the Govt have clarified that manual billing can be done. If so how the unique identification no for each invoice be made.
Q: Can manual invoicing be done under GST? Today the Govt have clarified that manual billing can be done. If so how the unique identification no for each invoice be made.
G Srikanth
Ans: Manual invoicing is permissible. The mandatory fields/contents of invoicing has to be followed in manual invoicing also. What do you mean by Unique Identification No?
Ans: Manual invoicing is permissible. The mandatory fields/contents of invoicing has to be followed in manual invoicing also. What do you mean by Unique Identification No?
Adrian Roberts
Q: Where do we see how the increase amount collected by Tax is used ... Is there some site for this? How does it better the common mans lifestyle for now I'm paying more everywhere I go.
Q: Where do we see how the increase amount collected by Tax is used ... Is there some site for this? How does it better the common mans lifestyle for now I'm paying more everywhere I go.
G Srikanth
Ans: The only document where you can check this is the yearly budget documents in http://rediff.ly/6p097 Whether GST will improve the lot of common man depends on what the tax collections are used for!
Ans: The only document where you can check this is the yearly budget documents in http://rediff.ly/6p097 Whether GST will improve the lot of common man depends on what the tax collections are used for!
Sujit Dsouza
Q: If gst is one tax, then why the petrol prices in Delhi is different than that of Karnataka?
Q: If gst is one tax, then why the petrol prices in Delhi is different than that of Karnataka?
G Srikanth
Ans: Please note that petroleum products have not been included so far under GST and so respective State tax and ED will continue to apply.
Ans: Please note that petroleum products have not been included so far under GST and so respective State tax and ED will continue to apply.
Ramesh Panditaradhya
Q: 1.If supplier rises invoice on 3.7.17 and supplies material but he doesn't have registration no. and resubmits revised invoice of 3.7.17 after getting GST registration on say 25.7.17 should we cancel earlier invoice and account revised invoice.-K.M.P.Ramesh
Q: 1.If supplier rises invoice on 3.7.17 and supplies material but he doesn't have registration no. and resubmits revised invoice of 3.7.17 after getting GST registration on say 25.7.17 should we cancel earlier invoice and account revised invoice.-K.M.P.Ramesh
G Srikanth
Ans: Yes
Ans: Yes
Vijay
Q: How do i treat stock in hand which is from other state
Q: How do i treat stock in hand which is from other state
G Srikanth
Ans: If you have stock in trade on which you have paid CST, the CST portion cannot be carried forward as Input credit in the GST regime. If you are a CENVAT dealer, you can transfer the closing balance of cenvat as per your returns as on 30.6.17 into the GST electronic credit ledger. If you are not a cenvat dealer, use you duty paid doc to transfer the ED portion. Stocks < 12 months old.
Ans: If you have stock in trade on which you have paid CST, the CST portion cannot be carried forward as Input credit in the GST regime. If you are a CENVAT dealer, you can transfer the closing balance of cenvat as per your returns as on 30.6.17 into the GST electronic credit ledger. If you are not a cenvat dealer, use you duty paid doc to transfer the ED portion. Stocks < 12 months old.
Saajan
Q: Will items purchased through Credit Card be liable for double GST i.e. GST at the time of purchase for the item, and GST on the amount due to the bank
Q: Will items purchased through Credit Card be liable for double GST i.e. GST at the time of purchase for the item, and GST on the amount due to the bank
G Srikanth
Ans: GST will be on the item at the time of purchase and on the credit card charges at the time of payment of your card.
Ans: GST will be on the item at the time of purchase and on the credit card charges at the time of payment of your card.
Shubham Paldewar
Q: What is GST rate on Steel Furniture to be purchased?
Q: What is GST rate on Steel Furniture to be purchased?
G Srikanth
Ans: Please check http://rediff.ly/6p09n under Notifications of CGST rates on Goods.
Ans: Please check http://rediff.ly/6p09n under Notifications of CGST rates on Goods.
G Srikanth
Ans: 28% ( C'GST 14% and SGST 14%)
Ans: 28% ( C'GST 14% and SGST 14%)
Uttara Shah
Q: In order to avail of GST credit, is it necessary to give my GST number to the supplier before the bill is made??
Q: In order to avail of GST credit, is it necessary to give my GST number to the supplier before the bill is made??
G Srikanth
Ans: Absolutely
Ans: Absolutely
Raju Bhatt
Q: Is GST really answer to solving the hideous & confusing tax system currently existing in India?
Q: Is GST really answer to solving the hideous & confusing tax system currently existing in India?
G Srikanth
Ans: GST cannot be a solution to this unless the plethora of notifications that are issued every day is stopped. On 30 June itself there have been as many as 40 customs notifications amending decade old notifications. Hope it stops with this
Ans: GST cannot be a solution to this unless the plethora of notifications that are issued every day is stopped. On 30 June itself there have been as many as 40 customs notifications amending decade old notifications. Hope it stops with this
MALTI MEHTA
Q: I have a Retail MediaCal Shop. I am opting for Composition Scheme. Suppose, in the month of Feb"2018 I found that, My T/O will exceed 75 lac then what will be Tax implication under GST. Is it that, I have to pay full tax on amount which exceeds 75 lac or on entire amount. My present T/o for 2016-17 is 30 lac approx.
Q: I have a Retail MediaCal Shop. I am opting for Composition Scheme. Suppose, in the month of Feb"2018 I found that, My T/O will exceed 75 lac then what will be Tax implication under GST. Is it that, I have to pay full tax on amount which exceeds 75 lac or on entire amount. My present T/o for 2016-17 is 30 lac approx.
G Srikanth
Ans: In that case, you have to migrate as a regular GST dealer. At that time you have to file a form showing the details of closing stock with the duty components which can be migrated into your electronic credit ledger. You can take credit on your subsequent sales. GST at regular rates will apply only post 75 lacs or when you register whichever is earlier.
Ans: In that case, you have to migrate as a regular GST dealer. At that time you have to file a form showing the details of closing stock with the duty components which can be migrated into your electronic credit ledger. You can take credit on your subsequent sales. GST at regular rates will apply only post 75 lacs or when you register whichever is earlier.
Amit-Kumar Gupta
Q: What do small supplier annual sale 4 to 5 Lakhs and have on registration GST.
Q: What do small supplier annual sale 4 to 5 Lakhs and have on registration GST.
G Srikanth
Ans: You need not register if your annual turnover is less than 20 lacs unless you do interstate sales
Ans: You need not register if your annual turnover is less than 20 lacs unless you do interstate sales
HEMANT KORGOANKAR
Q: Gud aftn, how much is GST slab on Courier and Cargo industry is it 5%, 12%or 18% can you clarify please
Q: Gud aftn, how much is GST slab on Courier and Cargo industry is it 5%, 12%or 18% can you clarify please
G Srikanth
Ans: Courier is at 18% (CGST 9% and SGST 9%). Transport of goods at 5% (CGST 2.5% and SGST 2.5%)
Ans: Courier is at 18% (CGST 9% and SGST 9%). Transport of goods at 5% (CGST 2.5% and SGST 2.5%)
Dheeraj Ajwani
Q: i have given wrong hsn code while filling gst form. Now I am migrated from vat to gst. How can i rectify the hsn code given now?
Q: i have given wrong hsn code while filling gst form. Now I am migrated from vat to gst. How can i rectify the hsn code given now?
G Srikanth
Ans: Yes you can. When you file the documents for permanent registration, do this change
Ans: Yes you can. When you file the documents for permanent registration, do this change
Narayanan Rathnakaran
Q: Purchasing a shirt of Rs.999 which is having a discount of 20%, on which price the GST is applied? Actual price or on discounted price?
Q: Purchasing a shirt of Rs.999 which is having a discount of 20%, on which price the GST is applied? Actual price or on discounted price?
G Srikanth
Ans: Discounted price
Ans: Discounted price
Amit-Kumar Gupta
Q: What is interstate sale ?
Q: What is interstate sale ?
G Srikanth
Ans: When you sell to another State
Ans: When you sell to another State
rohit shorey
Q: Can we buy medicines from Delhi and cell in Uttar Pradesh now?
Q: Can we buy medicines from Delhi and cell in Uttar Pradesh now?
G Srikanth
Ans: GST does not interfere in such things. You can sell if it is allowed under old regime.
Ans: GST does not interfere in such things. You can sell if it is allowed under old regime.
Vinu Murthy
Q: Do GST will be a big boon to farmers, all essential commodities've been put n 0% tax bracket
Q: Do GST will be a big boon to farmers, all essential commodities've been put n 0% tax bracket
G Srikanth
Ans: Taxing such commodities under GST would have been against the poor. So far so good.
Ans: Taxing such commodities under GST would have been against the poor. So far so good.
Amit-Kumar Gupta
Q: Is bread exempt from GST?
Q: Is bread exempt from GST?
G Srikanth
Ans: Bread (branded or otherwise), except when served for consumption and pizza bread is exempt
Ans: Bread (branded or otherwise), except when served for consumption and pizza bread is exempt
Alexander Singh
Q: Hi, I have got printing Press what is the GST I have to bill? What is the GST I have to pay for my raw materials?
Q: Hi, I have got printing Press what is the GST I have to bill? What is the GST I have to pay for my raw materials?
G Srikanth
Ans: Printing of books, journal and periodicals and of newspapers is at 5% (CGST2.5% and SGST 2.5%). Rest are at 18%. On your materials purchased, you have to pay GST based on the item. You can take input credit.
Ans: Printing of books, journal and periodicals and of newspapers is at 5% (CGST2.5% and SGST 2.5%). Rest are at 18%. On your materials purchased, you have to pay GST based on the item. You can take input credit.
Hazal
Q: CT1 bond is required in GST to export ceramic product??
Q: CT1 bond is required in GST to export ceramic product??
G Srikanth
Ans: Bond/LUT procedures are applicable for all exports. Please check cbec website for a guidance note that has been published
Ans: Bond/LUT procedures are applicable for all exports. Please check cbec website for a guidance note that has been published
jagdish joshi
Q: SIR N WHAT ABOUT Tea Snack refreshment, hotel stay n this GST get input tax credit?
Q: SIR N WHAT ABOUT Tea Snack refreshment, hotel stay n this GST get input tax credit?
G Srikanth
Ans: No input credit on amounts spends on foods and beverage. For Hotel Stay you will get input tax credit if the hotel is in the same place as your registered place of business.
Ans: No input credit on amounts spends on foods and beverage. For Hotel Stay you will get input tax credit if the hotel is in the same place as your registered place of business.
prashant kalantri
Q: What will happen to ongoing works contract? Will govt revise rates?
Q: What will happen to ongoing works contract? Will govt revise rates?
G Srikanth
Ans: Works contract rates after 30.6.17 is any 18%.
Ans: Works contract rates after 30.6.17 is any 18%.
Narayan
Q: We have stock of material purchased in July 28th and want to bill it today in VAT, whether possible? If to be done in GST what is the tax percentage for epoxy products
Q: We have stock of material purchased in July 28th and want to bill it today in VAT, whether possible? If to be done in GST what is the tax percentage for epoxy products
G Srikanth
Ans: Not possible to bill under VAT after 30.6.17. For rates, please refer the cbec website since there can be several classifications of the same item and each having different rates.
Ans: Not possible to bill under VAT after 30.6.17. For rates, please refer the cbec website since there can be several classifications of the same item and each having different rates.
adil
Q: GST impact: Apple iPhone 7, iPhone 6s get price cut, but should you buy? Sir, why GST is not applicable for petrol and diesel? Is this becos govt earns money in it?
Q: GST impact: Apple iPhone 7, iPhone 6s get price cut, but should you buy? Sir, why GST is not applicable for petrol and diesel? Is this becos govt earns money in it?
G Srikanth
Ans: Govt earns nearly 40% of its revenue from petroleum products on which so far it has never given ITC. It wants to continue only to maximise its revenue. Let us hope they are also brought in, as the FM says within 1-2 years
Ans: Govt earns nearly 40% of its revenue from petroleum products on which so far it has never given ITC. It wants to continue only to maximise its revenue. Let us hope they are also brought in, as the FM says within 1-2 years
Hiren Panchal
Q: We are readymade garment manufacturers. Some garments are supplied to exporters with invoices against which we get H-Forms. Some are supplied as if we are job worker. Here we do not get H-Forms and we deduct 1% TDS from invoice value. How much GST should we charge in both cases ? And should we continue with 1% TDS deduction in job-work bill??
Q: We are readymade garment manufacturers. Some garments are supplied to exporters with invoices against which we get H-Forms. Some are supplied as if we are job worker. Here we do not get H-Forms and we deduct 1% TDS from invoice value. How much GST should we charge in both cases ? And should we continue with 1% TDS deduction in job-work bill??
G Srikanth
Ans: There is no concept of Form H in the GST regime. So you collect GST from your customer and he will take a refund when he exports. As for job work, it is 5% GST if it is for processing Yarn or Fabric, else 18%.
Ans: There is no concept of Form H in the GST regime. So you collect GST from your customer and he will take a refund when he exports. As for job work, it is 5% GST if it is for processing Yarn or Fabric, else 18%.
amit kumar
Q: Is GST APPLY ON MRP
Q: Is GST APPLY ON MRP
G Srikanth
Ans: Concept of MRP is not present in GST
Ans: Concept of MRP is not present in GST
Hiren Panchal
Q: So when I make a sales bill to exporter OR other buyer (for whom I am a job worker) in both cases I have to add 18% GST to the invoice value....correct? And pls also inform how this GST percentage will be divided when I am selling to exporter OR other buyers who are based in Mumbai. I am also from Mumbai, for your info.
Q: So when I make a sales bill to exporter OR other buyer (for whom I am a job worker) in both cases I have to add 18% GST to the invoice value....correct? And pls also inform how this GST percentage will be divided when I am selling to exporter OR other buyers who are based in Mumbai. I am also from Mumbai, for your info.
G Srikanth
Ans: Yes. If the customer (whether exporter or not) its within your state it is divided 50% between CGST and SGST. If out of State charge full tax as IGST.
Ans: Yes. If the customer (whether exporter or not) its within your state it is divided 50% between CGST and SGST. If out of State charge full tax as IGST.
KAKINGERE IRSHAD
Q: Sir good afternoon, I newly opened and ladies dress material boutique. So what is procedure for my business about GST? Can you help me sir.
Q: Sir good afternoon, I newly opened and ladies dress material boutique. So what is procedure for my business about GST? Can you help me sir.
G Srikanth
Ans: You can do registration when your turnover reaches 20 lacs. Till then, you need not register unless you are selling to other states.
Ans: You can do registration when your turnover reaches 20 lacs. Till then, you need not register unless you are selling to other states.
G Srikanth
Thanks you very much guys! I am logging out and happy day to all!
Thanks you very much guys! I am logging out and happy day to all!
