Q: What is e-invoicing?
A. The Government has announced new e-invoicing systems under GST. This system would help to generate sales invoice in a standard format so that invoice so generated on one system can be read by another system and reporting of such e-invoice to a central system becomes possible.
E-invoice does not mean generation of invoices from the central portal of GST department. The taxpayers would continue to use his accounting system / ERP / excel based tools etc. to generate e-invoice.
He will be required to report e-invoice to Invoice Registration Portal (IRP) of GST. The system of e-invoicing would be made mandatory in a staggered timeline depending upon the turnover of the taxpayers. E-invoicing on trial basis will start from 1st January 2020.
Q: A merchant exporter of goods has received supply of goods from a supplier, who has availed benefits of notification no 40/2017 and accordingly charged GST @ 0.10% of such supply. Can such a merchant exporter export goods with IGST and claim refund of such IGST on such export?
A. In the given case, Merchant Exporter is compulsorily required to export goods under Letter of Undertaking or Bond and not with the payment of IGST.
Q: In above case can Merchant exporter claim refund of GST @ 0.10% paid on Inwards supply?
A. Yes, he is entitled to claim refund of GST @ 0.10% paid on inward supply under the “Refund on account of any other ground” as per circular 125/44/2019 – GST dated 18th November 2019.
Q: We are a charitable institution providing hostel accommodation to students. Is this activity a charitable one, exempt from GST?
A. Maharashtra AAR has held that this activity does not fall within the ambit of charitable activities & hence not exempt. GST would apply.
Q: We propose to come out with sales promotional scheme under which we will distribute articles free of charge. Are we eligible to claim Input Tax Credit of GST paid on purchase of such articles?
A. Distribution of articles in your case is gift. Hence ITC will not be available as provided in s. 17(5).
Q: We are engaged in the business of leasing of immovable properties for commercial purpose. We take refundable deposit from leases. On termination of lease, we refund the deposit after deducting charges against damage etc. Do we have any GST liability?
A. Firstly, you are liable to pay GST on lease rental receipt. Secondly, you are liable to pay GST on charges retained towards damages.
Q: We are engaged in the business of supply of goods which are wholly exempt from GST. We utilise services of goods transport agency for transport of goods. Are we liable to GST & for GST registration?
A. Although you are supplying exempt goods, you are liable to pay GST under Reverse Charge Mechanism (RCM) in respect of goods transport agency. Therefore you are liable for GST registration also.
Q: A Non-Resident Indian (NRI) is holding a commercial property in India and has given on rent. He is incurring certain expenses by way of maintenance charges as well as repairing charges which are subject to GST. Is he liable to apply for GST registration? Can he claim input tax credit on GST paid on maintenance charges as well as repairing charges?
A. Giving property on rent is supply of service under GST law. The non-resident is liable to obtain GST registration and the threshold of 20 lakh is NOT available to him. He is NOT eligible to claim ITC of GST paid on maintenance or repair charges.
