The main motive is to write this article to shortlist some basic and important GST questions with answers for businesses. These questions are very common and taxpayers might be stuck when working for GST compliance.
Question 1: Does GST Apply to Education and Allied Services?
Answer: A person runs a bus transport service in which he furnishes transport services to schools for the students to and from school. Is he liable to pay GST on these services?
The majority of educational services offered by schools and other educational institutions, as well as services associated with education, are free from GST. Let’s examine what the GST legislation states regarding student transportation to and from schools. The GST law states that there is no GST that applies to services offered by educational institutions or to educational institutions that transport their students, employees, and faculty members, as stated in Notification 12/2017.
This rule is applicable to all institutions of higher learning that offer services in the areas of early childhood education and education through the upper secondary level or an equivalent. As a result, there is no need to add GST to the cost of school bus services that a school uses to transport its students, employees, and teachers.
Question 2: A person would be planning to learn French at a foreign language school in India. Shall any GST be levied on my fees?
Answer: GST is not applied to educational services supplied by educational institutions to their pupils from preschool through higher secondary school or an equivalent. Any additional educational services, however, will be charged at a rate of 18%.
In this regard, the GST rate of 18% will apply to your French education at a language institute.
Question 3: A parent intends to send his child to a private sports training facility for instruction. Why did the coaching facility add GST to the tutoring costs?
Sports coaching and training services are only free from GST if they are supplied by a charity organization that is authorized to do so by Section 12AA of the Income Tax Act. In this instance, it is probable that the private coaching centre is not recognized under Section 12AA of the Income Tax Act as a charity institution. As a result, the fees would be subject to GST.
Question 4: Is GST levied on the person who is taking private tuition classes for Maths and Science when is in Standard 12?
Answer: As previously stated, the only educational services free from GST are those offered by an educational institution to its pupils from preschool through upper secondary school level, or an equivalent. As a result, tuition fees offered by a private instructor or private coaching facility would be subject to GST at a rate of 18%. However, the tutor’s or coaching centre’s turnover must reach the threshold amount in a fiscal year in order for GST to be levied, necessitating the completion of a GST registration form. This cap for service providers is Rs. 20 lacks for states in the normal category and Rs. 10 lacks for states in the special category (i.e. Northeast and hilly states.)
Question 5: If a dealer used to provide goods with the registered office in Jaipur. ### ltd, based in Rajasthan, do purchases of Rs 1 lakh and told a person to ship the goods to a warehouse in Karnataka. Do I liable to raise an invoice levying CGST/SGST or levying IGST?
Answer: It shall be the bill to ship to the transaction case. ‘Bill to ship to’ transactions comprise 3 parties, the supplier, the recipient, and the third person. As per the guidelines provided by the 3rd person, the goods are shipped to the recipient via the supplier. The initial portion of the transaction shall be held between the supplier and the third person. Further, it shall be held between the 3rd person and the recipient. Goods and Services Tax (GST) would get levied on both recipients on the basis of their business place.
In the same case, you are the supplier and the recipient held a warehouse in Karnataka. and ### Ltd. is the third person. The first invoice raised by you to ### Ltd. shall be required to secure state tax (SGST) and central tax (CGST) levy as it is an intra-state supply. ### ltd raised the second invoice to the company established in Karnataka will have integrated GST (IGST) charged since it is an interstate transaction.
Question 6: Two years ago If a person bought a house property under construction, however, the project does not have been finished yet. The refund has been accepted to be paid by the builder to the person since the identical would have been paid to the government. Is there any chance for the person to claim the Paid GST?
Answer: CBIC would have been furnished a circular where information about the GST refund claim process by the unregistered persons beneath the two cases is provided. The number one case is for the construction contract would get cancelled for the reasons like non-completion or late. For the same, the buyer might obtain the refund via the builder excluding GST since that is been paid to the government, and the limit of time to provide the credit note lapses.
In the same case, you are unable to furnish the refund application on the common GST portal via receiving a temporary GST registration. You are obligated to choose the same state/Union Territory as the supplier in concern of whose invoices you are filing the refund application. After you log in, proceed to Services -> Refunds -> Application for Refund. Beneath the refund type, choose ‘Refund for Unregistered Taxpayer’. Go to fill in the required information and upload the appropriate documents.
You should learn that you shall require to finish the required Aadhaar authentication and furnish the information of the bank account mentioned as per your name which is been taken via using your PAN.
Question 7: I want to become an Amazon affiliate, but I don’t have a business or company, thus I need the GST number. What name should I give the entity and what sort of PAN do I need to get or furnish information for?
Answer: An affiliate marketing scheme is referred to as Amazon Associates/Affiliate. It enables relevant website owners and bloggers to create links that generate referral fees each time users click through and make an Amazon purchase.
Every e-commerce seller must register for GST. An Amazon affiliate who engages in affiliate marketing, however, is not a vendor. Therefore, if a person is exporting or providing affiliate marketing services across the state, they are required to register for GST. Alternatively, if a person is providing services within the state, registration is required if the turnover exceeds the threshold set forth in the GST law, which varies by state. Even if their revenue is below the threshold, affiliate marketers can still register for GST voluntarily to take advantage of its perks.
In the aforementioned scenario, you have the option to voluntarily register under GST as a sole proprietor, that is, in your own name and with your own Permanent Account Number (PAN).
Question 8: What about the address where I don’t actually exist?
Answer: In order to sell online, e-commerce vendors are required by law to register for GST. When registering on the GST site using form REG-01, they must include information about their primary place of business and any additional locations where they conduct business.
Laws specify what is meant by “place of business” and “primary place of business.”
Simply put, the place of business is the location from where a taxable sale is made, where a godown or warehouse is located, where accounts are kept, or where business is conducted through an agent. The primary place of business, on the other hand, refers to the location that the taxpayer designates as its principal place of business when applying for registration.
From the aforementioned definitions, it is clear that for GST registration, the place where the supply originated counts more than the place where it is created or consumed. Consider a company that operates solely online, without a physical location or agent in another state, to sell things. In that instance, it may register for GST in that state solely and conduct online interstate sales.
Question 9: GST registration: What happens if your turnover exceeds Rs 20 lakh?
Answer: When your total revenue for the fiscal year reaches Rs 20 lakh, you must register under GST since you are a consultant (service provider) (Rs 10 lakh in the case of certain specified states). When your turnover surpasses the threshold, you have 30 days to apply for GST registration. If you provide your Aadhaar, it takes seven working days; otherwise, it might take up to thirty days.
There will be a delay between the date the certificate of registration is awarded and the date that the applicant is obligated to get registration in the event that an application is submitted within the allotted time and is approved.
The legislation permits issuing of a revised invoice for supplies provided by you during this interim period within one month of the day the certificate of registration was issued. You must produce GST invoices and collect tax from the receiver on each invoice after getting GST registration.
If you do not get a GST registration within the allotted period, you may be subject to a penalty under Section 122 of the CGST Act of 2017 in the amount of Rs 10,000 or the amount of unpaid taxes to the government.
You have two alternatives for paying income tax on your income. You can choose the presumptive scheme of taxes, which is 50% of total turnover/gross revenue under Section 44ADA if your annual total gross receipts are up to Rs 50 lakh.
Please be aware that only professionals who have been notified under Section 44AA, such as those in the legal, medical, engineering, or architectural professions, as well as those in accounting, technical consulting, interior design, etc., are eligible to choose presumptive taxation and are not required to keep any books of accounts pertaining to their line of work. There are no further expenses that may be deducted from your income.
