1. What category of persons are required to migrate to GST?
Ans: Taxable persons who are paying service tax, State VAT or Central Excise are required to migrate to GST. They will get temporary PAN based registration number. Final registration will be granted after submitting necessary information and papers, as defined under Section 139 of CGST and SGST Act 2017.
2. What will happen to CENVAT Credit available on the appointed day of 1st July 2017?
Ans: A manufacturer who is having CENVAT credit balance in his return on 30.06.20 17 can carry forward his CENVAT Credit as CGST credit. He can also take un-availed CENVAT credit of Excise duty paid on capital goods, as per Section 140 (1) and 140 (2) of CGST and SGST Act. He has to submit application in Form GSTTRAN 1 within 90 days.
3. Can a taxable person who was not eligible to take CENVAT credit earlier, but is now eligible to do so under GST, avail Input Tax credit?
Ans: A taxable person who was not eligible to take CENVAT credit earlier but is now eligible to do so under GST can take Input Tax credit of Excise duty which was paid on the stock with him, if he has Invoice or other documents evidencing payment of Excise duty. He has to submit stock statement, as specified under Section 140 (3) of CGST and SGST Act 2017.
4. Can Input Tax credit be availed for goods cleared by supplier prior to 01.07.2017, but received by recipient after 01.07.2017?
Ans: If goods were cleared by supplier prior to 01.07.2017 by paying Excise duty and State VAT but goods were received after 01.07.2017 by recipient, Input Tax credit of such Excise duty or State VAT is available if such invoice was recorded in the books of accounts within 30 days i.e. before 30.07.20 17. He has to furnish specified details, as contained in Section 140 (5) of CGST and SGST Act 2017.
5. Is Input Tax credit available for materials sent to job worker before 01.07.2017?
Ans: If material was sent for job work and was lying with job worker, Input tax credit can be taken on submission of details as prescribed under Section 141 of CGST Act and SGST Act 2017.
6. Can Input Tax credit be availed on goods whose value is higher than Rs 25,000/- by the dealer who hold these goods in custody on 01.07.2017?
Ans: In case of goods of value higher than Rs 25,000/-which are identifiable by distinct number (like engine number, chassis number,laptop number,air conditioner number,refrigerator number ), the manufacturer can pass on credit to the dealer by issuing Credit Transfer Document (CTD). Statement has to be submitted in TRANS 3, TRANS 3A and TRANS 3B.
7. What is the treatment for un-availed CENVAT credit on Capital goods on appointed day?
Ans: A registered taxable person shall be entitled to take, in his electronic credit ledger, credit of un-availed CENVAT credit in respect of capital goods, not carried forward in a return, furnished under the earlier law by him, for the period ending with the day immediately preceding the appointed day in such manner as may be prescribed.
8. What is the treatment for Exempted goods returned to the place of business within 6 months form the appointed day?
Ans: Where any goods on which duty had been exempt under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months from the appointed day and such goods are identifiable to the satisfaction of the proper officer.
9. What is the treatment for Exempted goods returned to the place of business after 6 months from the appointed day?
Ans: Tax shall be payable by the person returning the goods if the said goods are liable to tax under this Act and are returned after a period of six months from the appointed day.
10. What is GST treatment on Duty paid goods returned to the place of business within 6 months or after the appointed day?
Ans: Where any goods on which duty had been paid under the earlier law at the time of removal thereof, not being earlier than six months prior to the appointed day, are returned to any place of business on or after the appointed day, no tax shall be payable thereon if such goods are returned to the said place of business within a period of six months form the appointed day and such goods are identifiable to the satisfaction of the proper officer.
11. What is the treatment for Duty paid goods removed to the place of business after 6 months from the appointed day?
Ans: Tax shall be payable by the taxable person returning the goods if the said goods are liable to tax under this Act and are returned after a period of six months from the appointed day.
12. Can the person to whom goods are returned take credit of Goods paid at the time of removal of such goods?
Ans: Every taxable person who receives such goods within a period of six months shall be entitled to take credit of the duty paid earlier at the time of removal.
13. What is the treatment of goods sent on approval basis but returned on or after the appointed day?
Ans: When goods are sent on approval basis and such goods are returned within the period of six months from the appointed day, or extended period of 2 months, then no tax is payable as per Section 162 D of CGST Act 2017.
14. Is tax payable in case goods are rejected or not approved by a buyer received after the appointed day?
Ans: No tax shall be payable in case where any goods are rejected or not approved by the buyer and are returned within the period of 6 months. However, GST shall be payable by the person returning the goods and sending the goods if the goods are returned after the period of 6 months.
15. What happens if the tax payer has distinct VAT registrations in the same State?
Ans: The transitional provisions will allot only one registration certificate in each state based on single PAN even though such person had multiple registrations in the State. He can have distinct registrations in the same State by way of an option only if the business unit qualify as business verticals under the GST Law.
Amount of Transitional Credit taken less than actual due to calculation oversight now desirous of taking the balance amount of credit. How?