Q1. A person has turnover less than 20 lakh rupees from the sale of goods and hence has not taken GST registration. Due to compulsory registration provisions of section 24, he had to take registration to pay tax on reverse charge for a particular transaction. Whether he has to pay tax on other outward supplies of goods?
Ans: The person, who obtains GST registration either voluntarily or compulsorily, will have to comply with all the provisions as applicable to a registered person. He has to charge GST on the outward supplies of goods.
Q2. The GST limit has been crossed during the financial year and registration has been obtained in the middle of the year. What has to be done for the invoices raised before the date of obtaining registration?
Ans: GST is applicable only from the effective date of registration. No GST shall be collected for the invoices issued prior to such effective date of registration. However, from the effective date of registration, if any invoice has been issued, then a revised invoice has to be issued in line with the provisions of section 31 of the CGST Act.
Q3. An advocate is having professional income of ` 16 lakhs and Bank interest from FD of ` 5 lakhs. Is he required to be registered?
Ans: Advocates are exempt from registration in view of Notification No. 5/2017 – Central Tax dated 19-06-2017 whereby persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act. Further, interest from FD is exempt vide Notification No. 12/2017 – Central Tax (Rate) dated 28-06-2017. Thus, the advocate will not be liable for registration even if his turnover crosses the threshold limit.
4. A person is having rental income from commercial property of ` 6 lakhs and Interest income from lending of ` 22 lakhs. Whether the person is liable to be Registered?
Ans: Income earned by way of interest from loans is an exempted supply vide Notification No. 12/2017 – Central Tax (Rate) dated 28.06.2017. Aggregate turnover in a FY includes taxable supplies as well as exempted supplies. Therefore, the total turnover is 28 lakhs and therefore the person is liable to be registered under GST. However, tax has to be paid only on the rental income from commercial property.
Q5. If a religious trust received ` 15 lakhs as offerings, ` 5 lakhs as rental income and 2 lakhs as exempted rental income [Notification 12/2017 –Central Tax (Rate) dated 28-06-2017 -area within precincts of the temple]. Whether they need to take registration under GST.
Ans: The offering received is not covered by the definition of supply as there is no quid pro quo. Therefore, it will not be considered for calculation of the aggregate turnover. The remaining income of Rs 7 lakhs will be taken into consideration for calculation. Since the income is less than 20 lakhs, the trust need not register in GST.
6. The dealer has only export turnover exceeding ` 20 lakhs during the FY. Is he Required to get registration under GST? He does not have any other income except interest on FD and saving bank account and capital gains on sale of shares.
Ans: Exports are inter-State supplies under section 7 of IGST Act, 2017. Hence, persons NOT liable to payment of tax on their outward supplies on account of exports would STILL be required to obtain GST registration and submit to all compliances. All exporters, regardless of turnover limit, MUST obtain registration, file LUT, file returns, repatriate forex (not INR) and demonstrate correctness of their claim to zero-rated benefits.
7. A Ltd. registered in Bihar is having its 10 warehouses in 10 different States and supplying goods to its customers from such warehouses. Can A Ltd. supply goods from different warehouses by raising GST invoice?
Ans: Registration has to be taken in every State from where the taxable supply is being made. Warehouses are covered by the definition of the fixed establishment and thus registration has to be taken in every State where the warehouse is located.
Q8. Whether income from sale of shares and dividends need to be included in the turnover for ascertaining the applicability of GST Registration in the following cases: 1) if shares are purchased as investment. 2) if shares are purchased for trading purposes.
Ans: Transaction in securities is neither good nor service. Securities have been specifically excluded from definition of ‘goods’ and ‘service’. Section 2(102) of CGST Act, 2017 defines ‘services’ and section 2(52) of CGST Act, 2017 defines ‘goods’. Hence, ‘supply of securities’ will not be subject to GST and the same will not be considered for threshold limit for obtaining registration.
Q9. ABC is providing exempt services exceeding 20 lakhs but since it has engaged in exempt services only, registration is not mandatory. Now, it is selling a capital good (machinery). Whether registration is required just because it is selling the business asset?
Ans: The benefit of the exemption under section 23 shall be lost and the aggregate turnover (Exempt supplies + supply of machinery) shall be considered and if it crosses the Threshold limit then registration shall be required under section 22.
10. ABC Private Limited is having businesses in Goa and Maharashtra. The aggregate turnover of goods and services in the FY 17-18 is ` 25 lakhs. However, the turnover from the State of Goa is ` 7 lakhs only. Is ABC required to obtain registration in Goa?
Ans: The aggregate turnover is ` 25 lakhs calculated on an all-India basis (at a PAN level).
Thus, ABC Pvt. Ltd. will have to obtain registration in Maharashtra as well as Goa.
By CA KAVITA DHINGRA
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