Q 1: How the deemed credit of available stock and Work in progress (WIP) to be availed by an Assessee ?

Ans: The provisions relating to deemed credit are contained in the proviso to section 140(3) of the CGST Act, 2017 and rule 117 (4) of the CGST Rules, 2017. ITC at the rate of 60% is allowed where the Central tax rate on goods is 9% or more; it is allowed at the rate of 40% in other cases. It is allowed only after the payment of applicable tax. It can be taken in the first six tax periods only. Deemed credit is allowed only to traders and not to manufacturers.

Q 2: Is there any provision/ instruction under the CGST Act for taking/verifying the physical stock of the units as on 30th June 2017. It is pertinent to mention here that the Punjab Excise & Taxation department is undertaking the exercise of stock taking/verification of the units which were earlier registered with them. Matter may please be clarified.

Ans: There is no such bar under the CGST Act, 2017.

Q 3: Till the time E-way bill system is fully developed which documents/ procedure should be followed for inter-state supply of goods

Ans: The goods can be transported with documents like tax invoice, bill of supply and delivery challan. Document as may be prescribed under Rule 138 of the SGST Rules, 2017 will also have to be carried by the person in charge of the conveyance.

Q 4: Government has allowed increase in MRP due to additional incidence of GST. Can it be done for stock lying with dealers & retailers or only for stock lying with manufacturer or importers?

Ans: The prices can be revised where the incidence of tax has increased under the GST. However, one should adhere to the requirements under other statutes like the Legal Metrology Act also.

Q 5: Does tax need to be paid on advances in hand as of June 30th for goods to be supplied from July 1?

Ans: No

Q 6: Builder is demanding balance money due to tax rate changed under GST. Do we have to pay service tax on entire amount of registration under GST, also if abatement provided before GST is available or not?

Ans: GST is operational from 01.07.2017. Only on the balance amount GST will be applicable on future payments. For tax paid under the earlier law, section 142(11) of the CGST Act, 2017 may be referred to.

Q 7: How to avail credit on raw material and packing materials stored outside factory on which credit could not have been availed due to the specific restriction in the permission given by the Excise department? Whether these goods can be treated as “in-transit” and credit be availed under Section 140(5) within 30 days of GST implementation?

Ans: Goods can be treated in transit only when the same have not been received by the recipient which is not the case in this scenario.

Q 8: Clarity is needed on the period for which details of turnover needs to be given in Table 5(b) and 5(c ) of Form GST TRAN-1.

Ans: Period is given in the form itself i.e. 01.04.2015 to 30.06.2017.

Q 9: The tax paid in excess in one month is allowed to be adjusted against the tax liability due for the next month. What would be treatment of such excess payment of tax (service tax/ VAT) for the last month prior to appointed date?

Ans: Under transitional provisions all such excess ITC and Cash can be carried forward and GST can be paid from this amount.

Q 10: Will the facility of deemed credit of 60/40 percent of CGST under Rule 117(4) CGST Rules be available to both traders and manufacturers?

Ans: The facility will be available to all persons other than manufacturers or supplier of services. Proviso to Section 140(3) of CGST Act 2017 refers

Q 11: There is a GST of 28% on a product of MRP Rs.100 and the costing price of that product is Rs. 90.90/- (taxable value + 14.5% VAT) so the taxable value of that product will be 79.38 and if the GST of 28% will be added to the amount without adding any profit then it will be 79.38+22.22(28% GST) and the total value of the product will be Rs.101.60/- which is higher than MRP. So how it will be sold at the value higher than the MRP?

Ans: MRP can be revised albeit with certain precautions and for only for certain time period. Press Note of Ministry of Consumer Affairs, Food & Public Distribution dated 04.07.17 may be referred to.

Q 12: Section 16 of IGST Act, 2017 has a provision for Zero Rated supply under GST for supply of goods and services to SEZ Units – Need explicit clarity whether this also covers for supply of goods and services by one SEZ unit to another SEZ unit. E.g. Exchange levying fees and penalty to its trading members who are also IFSC Units.

Ans: Yes, supply of goods and services by one SEZ unit to another SEZ unit would be considered zero rated supplies under section 16 of the IGST Act, 2017, which deals with zero rated supplies. Section 16 provides for zero rating of "supply of goods or services or both to a SEZ developer or a SEZ Unit". As supply in the question is to a SEZ developer or a SEZ unit, it is covered under section 16

Q 13: What shall be impact of tax on the works after 30.06.2017 for which tenders have been processed but acceptance letters not issued?

Ans: GST is payable on services supplied after 01.07.2017

Q 14: Certain fabrics were exempt from payment of central excise duty vide Notification No. 30/2004-CE dated 09-07-2004. This exemption was subject to the condition that the manufacturer has not availed Cenvat credit of duty paid on inputs. Thus the said exemption was not unconditional. Will ITC @40% of CGST be admissible to the taxable person in respect of such fabrics held in stock?

Ans: Yes, ITC would be admissible.

Q 15: How do I avail transition credit ?

Ans: Transition credit can be availed by filing the respective forms under Transition rules upto 30.09.2017.

Q 16: Please provide the clarity on area based exemption 50/2003 in UK & HP.

Ans: Area based exemptions will not be continued under GST. It will be operated through the route of reimbursement as prescribed.

Q 17: We manufactured excisable goods. But unit availed the exception benefits 50/2003. What about my dealers stock?

Ans: The dealer will get deemed credit @ 40% / 60% of the CGST paid on supply of such goods in GST. If the goods are branded and greater than Rs. 25,000, full credit using CTD can be availed.

Q 18: A trader buys from manufacturer not registered in excise as his turnover is below 1.5cr. Then in such case can trader take ITC on stock up to 40%?

Ans: Yes deemed credit will be available subject to satisfaction of other conditions as prescribed.

Q 19: I am a trader. I have excise paid purchase invoice. Whether I can claim credit of full excise duty on closing stock of 1st July 2017

Ans: Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 20: If a trader purchases directly from manufacturer & has documents showing excise, will he get full excise credit or 40% of CGST?

Ans: Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 21: If a fsd purchases directly from manufacturer and has value cum excise duty and excise duty is not separately shown will he get full credit?

Ans: Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 22: Is the full excise credit also available to traders who purchases directly from manufacturers and excise is separately shown in invoice?

Ans: Full transition credit of such duty will be available on stock in hand in respect of which you have duty paying excise document subject to conditions under Section 140(3) of the CGST Act.

Q 23: In June 17 Vat return no amount carried forward & held stock of Rs. 50 lakhs. Then can we take credit of that stock or not?

Ans: The supplier would be eligible to carry forward the closing balance of ITC from VAT return for June 17.

Q 24: What will be the impact of closing stock which has been already paid vat on 1st July?

Ans: The supplier would be eligible to carry forward ITC on such stock from VAT return for June 17.

Q 25: If in Vat return refund claimed in June 17 & no balance credit in GST. Then what's the position of submission of Form C

Ans: Refund claimed under existing law will be handled as per the provisions of the existing law. Form C to be submitted in terms of provision of Rule 1(1) of Transition Rules.

Q 26: Some service was provided on 28.06.2017 but Invoice will be raised on 05.07.2017. Whether we have to charge Service Tax or GST?

Ans: If Point of Tax arises after appointed date, then GST will be chargeable on such supply.

Q 27: Would we be eligible for credit on Capital Goods in transit and received post GST?

Ans:No provision for such credit is there in GST law.

Q 28: What about VAT balance pending on transition date?

Ans: Balance VAT credit in the return will be transferred to new provisional ID as SGST Credit.

Q 29: What about deemed export against Form H?

Ans: Form H will not be there in GST.

Q 30: Who will bear tax difference on closing stocks as on 30th June 2017? Whether the manufacturer/dealer or government?

Ans: Closing ITC in VAT return will be allowed to be carry forward in GST.

Q 31: How will we get input credit on stock in hand for spare parts billed from other state, excise, CST and entry tax paid?

Ans: For all inputs with duty paying documents available respective CGST / SGST credit will be available. But credit of CST will not be available.

Q 32: A trader buys from manufacturer not registered in excise as his turnover is below 1.5 crore. then in such case can traders take ITC on stock up to 40% ?

Ans: Deemed Credit will be available on stock in hand provided the conditions of section 140(3) read with Rule 1(4) of Transition Rules are satisfied.

Q 33: Whether we will be eligible for credit of duty paid on Capital Goods in transit and received post GST?

Ans: No such provision in GST.

Q 34: Can ITC of Swach Bharat Cess or Krishi Kalyan Cess be carried forward under GST?

Ans: No.

Q 35: Will Clean Energy CESS on imported Coal @ Rs. 400 PMT continue to be applicable in GST?

Ans: No. Clean Energy Cess is being repealed. Coal, however, will be subject to compensation cess @ Rs 400/- per tonne.

Q 36: Whether closing balance of edu cess and secondary higher education cess prior to 1st Mar 2015 can be carried forward in GST?

Ans: No it will not be carried forward in GST as it is not covered by definition of “eligible duties and taxes” under Section 140 of the CGST Act.

Q 37: Can u clarify for 40℅ benefit on closing stock does 1 year limit apply or not ?

Ans: Deemed credit will be available for all stock procured within a 1 year period.

Q 38: Till what time is transition credit available? Where do I need to declare my input stock?

Ans: The window to declare transition credit forms is three months from the appointed day. Please refer to transition rules for more details

Q 39: After implementation of GST, will EOU scheme continue or not?

Ans: GST has no special dispensation for EOUs. As to whether they exist for any other purpose may be seen from the FTP.

Q 40: I was unregistered in excise before and now in 18% slab? Can I take credit of stock if I don’t have invoices?

Ans: Deemed credit will be available to you for stock as duty paying documents are not available, subject to provisions of section 140 (3) of the CGST Act, 2017 read with Rule 140(4) of CGST Rules, 2017

Q 41: I enjoyed SSI Exemption in Excise and did not register; how do I now take credit of stock lying with me?

Ans: Credit may be availed on the basis of document evidencing payment of duty on inputs as per section 140(3) of the CGST Act, 2017 read with Rule 140(4) of CGST Rules, 2017.

Q 42: For textile trader or manufacturers, with input stock without payment of excise duty but GST being charged on final sale, shall we get credit of such stock?

Ans: Credit of stock which was unconditionally exempt from excise duty or was NIL rated shall not be available. Please see Rule 117(4) of the CGST Rules, 2017.

Q 43: Can a spice manufacturer take ITC of central excise paid on packing material lying in stock as on 30/06/17?

Ans: If he has duty paying documents then he will get full credit of central excise duty paid on stock held by him.

Q 44: I made booking for hotel for a trip in October. Invoice raised already. Would I need to pay GST if payment will be done on 15 July?

Ans: If the invoice has been raised and payment made before the 1st of July 2017 then GST will not be applicable.

Q 45: If rent received in advance before appointed day and person not liable to service tax then does RCM liability arise?

Ans: The liability of RCM under GST will arise only after 1st of July 2017.

Q 46: Is there any format for invoice under GST? If yes, please provide the link of the same.

Ans: No there is no particular format. Rule 46 of the CGST Rules, 2017 prescribes the particulars to be contained in Invoice.

Q 47: Whether from 1st July sequence of invoice no. will change? Or can we follow the same sequence?

Ans: Same sequence can be followed provided conditions laid down in Section 31 of the CGST Act, 2017 read with Rule 46 of CGST Rules, 2017 are met.

Q 48: Whether existing UT-1, Bond will suffice? Whether existing ARE 1 form will exist?

Ans: Circular No. 4/4/2017-GST dated 07.07.2017 has clarified that the existing Bonds/LUTs shall be valid till 31.07.2017 after which the Bonds/LUTs shall have to be executed in the newly prescribed formats. New formats of bond and LUT have been prescribed under Rule 96A of CGST Rules, 2017.

ARE-1 procedure is being dispensed with except in respect to commodities which continue to attract Central Excise duty.

Q 49: Can we get ITC for capital expenditures like vehicles, solar panels etc for company use?

Ans: ITC on capital goods is generally available if they are used in the course or furtherance of business. However, credit is not available on cars, unless you are in a business of imparting driving training, or supplying such cars. A list of item on which ITC is not available is provided in Section 17 of the CGST Act, 2017.

Q 50: If my turnover is less than 1.5 crores, do I need to mention HSN code on my invoice?

Ans: Specifying HSN code on invoice is optional for taxpayers having turnover upto 1.5 crores.

Q 51: We are Excise registered dealers and have stock older than 1 year for which Excise is paid. Will we get Input tax credit?

Ans: You will be entitled to carry forward closing balance of CENVAT credit shown in your last return filed under Central Excise Act.

Q 52: I was unregistered earlier. Now I want to register under composition scheme. Can I take ITC of my duty paid stock?

Ans: No, a person registering under the composition scheme cannot take ITC on inputs

Q 53: I have Excise registration. I now want to migrate using composition scheme. What is to be the treatment of ITC?

Ans: Not eligible for ITC under composition scheme. Your ITC lying in balance will lapse.

Q 54: I paid for a service in June 2017 but am likely to receive the service in August 2017. Can I avail ITC for the same?

Ans: Credit on such inputs services will be allowed subject to satisfaction of conditions prescribed in Section 140 (5) of the CGST Act.

Q 55: For taxpayers with centralized registration under Excise/ST, what is to be treatment of CENVAT after migration?

Ans: CENVAT credit lying in balance in the return filed for period upto 30.06.17 is to be allowed as CGST credit as per Section 140(8) of the CGST Act, 2017 read with Rule 117(2) of CGST Rules, 2017.