Taxability Provisions and Input Set-off in GST

Rukmani Gupta Rukmani Gupta Dec 21, 2019 2097 0



 

Taxability & Input Set-off of GST

  1. What is the difference between reverse charge & forward charge of GST?
  2. What is aggregate value of supplies under GST?
  3. Which goods are not leviable under GST?
  4. Who is a casual taxable person in GST?
  5. Do I need to deposit GST even if customer has not paid me?
  6. How I can settle GST liability?
  7. Who has to pay under GST Act?
  8. What are types of tax is to be paid under GST?
  9. In what order we can use input credit of IGST, CGST & SGST?
  10. In what order I can adjust my IGST Input Credit?
  11. In what order I can adjust my CGST Input Credit

 

1. What is the difference between reverse charge & forward charge of GST?

When the receiver of goods or services directly deposit the GST on value of supplies received, it will be called as Reverse Charge GST.

But as a general practice, the person making supply of goods & services, collects GST from receiver & deposit it to Govt, then it is called forward charge of GST.

From when the new limits of 40 lacs for GST Registration is applicable?

From 1st Apr. 2019, the new limits of 40 lacs is applicable for GST registration in case of Supply of Goods in normal states & 20 lacs in case of special category states.

2. What is aggregate value of supplies under GST?

Aggregate turnover means total value of all the taxable supplies including exempt sales, export of both goods & services for same person including all businesses in India but it excludes the inward supply on which he is liable for reverse charge.

3. Which goods are not leviable under GST?

Following goods are not leviable under GST:-

Natural Gas

Fuel Turbine

Motor Spirit

High Speed Diesel

Alcohol

Crude Petrol

4. Who is a casual taxable person in GST?

A person who does not have a permanent or fixed place of business in any taxable state but he makes any casual supply of goods or services from that state, he will be treated as casual taxable person? For example a professional based in Mumbai have a seminar in Bangalore, where he does not any business place but he is delivering the seminar casually at that location will be treated as casual taxable person for that state.

   

5. Do I need to deposit GST even if customer has not paid me?

Yes, your liability to pay GST arises in the month you raise the invoice, as you need to discharge GST payment of all the invoices raised in a month by 20th of next month. This is irrespective of the fact that customer has paid you or not.

6. How I can settle GST liability?

GST Liability can be settled in two ways:-

  1. By way of payment through net banking/ NEFT/RTGS /offline etc.
  2. By way of adjustment against input credit but input credit can be adjusted only against output GST tax not the interest, penalty & other dues.

7. Who has to pay under GST Act?

Following persons have to pay under GST:

  1. The person making taxable supplies as output GST
  2. The taxable person taking services/goods from unregistered dealer as reverse charges tax
  3. Dealers who are liable to deduct TDS
  4. Ecommerce operators who are liable to collect TCS

8. What are types of tax is to be paid under GST?

Under GST 3 different type of taxes has to be paid:

  1. CGST -Central goods and services tax
  2. SGST- State goods and service tax
  3. IGST – Integrated goods and service tax

    

9. In what order we can use input credit of IGST, CGST & SGST?

We can set off the input credit on GST in the following order:

  • Input Credit on IGST should be settled first on IGST, then remaining on CGST or SGST in any order in any amt.
  • Input Credit on CGST should be first settled on CGST, then on IGST, but nothing against SGST.
  • Input Credit on SGST should be first settled on SGST / UTGST, then on IGST, but nothing against CGST.

10. In what order I can adjust my IGST Input Credit?

After July 2019 , You can adjust your IGST input credit first against IGST, then CGST or SGST in any order or proportion but you have completely exhausted IGST liability.

11. In what order I can adjust my CGST Input Credit?

You can adjust your CGST credit first against CGST & then IGST.






 

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