FAQs on GST canceelation, valuation and Clasification
Query1: Whether a person suo moto can apply for revocation of cancellation of registration whose registration has been cancelled by the proper officer and what is the time limit for submitting such application?
Answer: Yes, a person whose registration has been cancelled by the proper officer suo moto can apply for revocation and such application has to be submitted within thirty days from the date of service of cancellation order.
Query2: So far as registration is concerned, what could be the liabilities on transfer of business?
Answer: The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from such date. (Scheduleedule III of MGL).
Query3: What will be the time of supply when invoice is not issued and date of payment or date of completion of provision of service are also not ascertainable ?
Answer: The time of supply shall be the date on which the recipient shows the receipt of services in his books of accounts.
Query4: Kindly clarify - Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under GST Act?
Answer: Yes. In terms of Section 19(5), where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under the MGL, or under any other law for the time being in force, proceed to register such person.
Query5: Kindly clarify whether registration is compulsory for the Govt. organization?
Answer: A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration but are making inter-state purchases.
Query6 : Kindly clarify the classification of goods and services under GST regime?
Answer: HSN (Harmonised System of Nomenclature) code shall be used for classifying the goods under the GST regime. Taxpayers whose turnover is above Rs. 1.5 crores but below Rs. 5 crores shall use 2 digit code and the taxpayers whose turnover is Rs. 5 crores and above shall use 4 digit code. Taxpayers whose turnover is below Rs. 1.5 crores are not required to mention HSN Code in their invoices. Services will be classified as per the Services Accounting Code (SAC)
Query7: Whether summary assessment order to be necessarily passed against the taxable person?
Answer: No. In certain cases like when goods are under transportation or are stored in a warehouse, and the taxable person in respect of such goods cannot be 131 ascertained, the person in charge of such goods shall be deemed to be the taxable person and will be assessed to tax.
Query8: In case of e-commerce operator, is it mandatory for him to obtain registration under GST?
Answer: Yes. Section 19 r/w Schedule-III of the MGL, provides that the threshold exemption is not available to e-commerce operators and they would be liable to be registered irrespective of the value of supply made by them.
Query9: Kindly clarify the treatment of transactions of supply of goods for use but without transfer of title in such goods?
Answer: The transactions of supply of goods for use without transfer of title in such goods to recipient will be considered a transaction of supply of services as provided in Schedule II of Model GST Law.
Query10 : Kindly clarify the applicability of valuation rules of GST.
Answer: Valuation Rules of GST are applicable when
(i) Consideration not in money terms;
(ii) parties are related or supply by any specified category of supplier; and
(iii) transaction value declared is not reliable.
Query11 : Who will adjudicate the cases and pass orders under GST Regime?
Answer: The duly appointed adjudicating authorities shall adjudicate the matters other than appeals in the GST Regime. As per sec. 2(4), ‘adjudicating authority’ means any authority competent to pass any order or decision under this act, but does not include the Board, the First Appellate Authority and the Appellate Tribunal. Thus, adjudicating authority would exclude the Board itself (CBEC or CBIT) and appellate authorities viz first appellate authority and appellate tribunal.
Query12: What would be the treatment for supply of goods by unincorporated associations to its members under GST Regime?
Answer: Supply of goods by unincorporated associations to its members have been considered as supply of goods. Clause 6 of Scheduleedule II of model GST Law provides that supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration shall be treated as supply of goods.
Query13: Does the threshold exemption limit will be applicable to a taxable person required to pay GST under reverse charge basis?
Answer: Any taxable person, who has an obligation to pay tax on reverse charge basis, will not get the benefit of INR 20 lakhs (general) or 10 lakhs (for north-east states) threshold limit. Thus, the reverse charge liability will start from the very first transaction, irrespective of its amount, on which tax liability is to be paid on reverse charge basis.
Query14: Under GST Regime, whether unregistered person would also be included under taxable persons?
Answer: As per sec 9(1) of the model GST Law, a taxable person means person:
- Who carries on any business in any place in India and who is registered under GST Law, or
- Who carries on any business in any place in India and who is required to be registered under Schedule III of the Act.
Therefore, an unregistered person would be considered as taxable person.
Query15: How to deal with transactions involving transfer of the right to use goods under GST Regime?
Answer: The transactions of transfer of goods which were being taxed as a sale transaction under the state VAT law will be considered as transaction of supply of services as provided in clause 5(g) of the schedule II of Model GST Law.
Query16: Whether GST will be payable on goods which are removed for purpose other than supply?
Answer: Goods are said to be removed when they are given to transporter for taking those goods to recipient or when goods are collected by recipient personally or through an agent. Any other movement of goods will not be considered removal for the purpose of GST.
Query17: Kindly clarify the treatment of work contract including transfer of property in goods for the purpose of GST.
Answer: According to schedule – II to the Model GST law, works contract including transfer of property in goods (whether as goods or in some other form), involved in the execution of a works contract, shall be treated as supply of service.
Note : CBIC directs GST Officer to issue SCNs based on difference in ITR-TDS data and Service Tax Returns only after Proper Verification Link the circular