In Case One taxable person files a return under the GST Act but does not make payment of taxes what happen?
I understand that the applicability of GST on the reverse charge basis has been suspended. In this scenario, I want to know whether the information is applicable to the import of services, for which we are paying GST on the basis of reverse charge?
In the case of import of services, the integrated tax is payable under Section 5(3) of the IGST Act, 2017 (Integrated Goods and Services Tax Act). The liability to pay GST under the reverse charge has been postponed in respect to the transactions under IGST Act Section 5 (4), which are not registered under the GST Act, accordingly, import of services shall continue to be liable to Integrated Tax under reverse charge mechanism.
Who can opt for the composition scheme? Is liability to pay taxes under RCM(reverse charge mechanism) covered under the composite scheme?
The GST law provides an option for the supplier of goods to choose for payment of GST under the Composition scheme of goods, in which annual total turnover cannot exceed 10 million. Any person engaged in the supply of food/drinks (other than alcohol) has been given a similar option. However, this option is not available for other service providers. This option is also not available if suppliers are engaged in interstate supply.
GST payable under reverse charge mechanism is not covered under the composition scheme.If a person registered under the composition scheme purchases any goods and services on which GST is payable under RCM, then the person will have to pay at the rate applicable on GST and this structure will not be based on the rates prescribed under this scheme.
What happens if t the e taxable person files a return under the GST Act but does not pay tax?
Under GST law, the filing of return without payment of taxes will not be considered as a valid return. Section 2 (117) defines a valid return. This means, a return submitted under sub-section (1) of section 39 which is filled up by self-assessment. This is only a valid return which will be used to allow the recipient to input tax credit (ITC). In other words, unless the supplier has made complete self-assessment and has filed his return and the recipient has filed his return, then the recipient’s ITC will not be confirmed.
Before July 1, 2017, what will be the GST implication on the goods returned under the GST regime?
The GST Act includes specific transitional provisions regarding the goods sold under the pre-GST regime, which return by the recipient on or after July 1, 2017.
If the buyer is not registered under the GST Act, the seller will be eligible to claim the payment of taxes/duties under the pre-GST regime. However, the return is acceptable only when the goods were not sold for six months prior to July 1, 2017, and returned within six months after July 1, 2017.
If the buyer is registered under the GST Act, such goods returned by them after 1st July 2017 will be treated the as a separate supply transaction. In such a case, the buyer will have to issue a tax invoice and charge the applicable GST.
Under the GST Act, the supply of goods or supply of services is considered as the supply of software?
GST provides that services related to the development, design, programming, customization, optimization, upgradation, enhancement, implementation of information technology software will be treated as a supply of services. Accordingly, the software will be treated as a supply of service.
We are engaged in the supply of discounted goods to Special Economic Zones (SEZs). Can we still claim input tax credit in respect of such supply?
Due to a special provision under the GST Act, the SEZ is supplied are treated as zero-rated supply. In such a provision, there is a special provision that if such supply is exempted from tax, even in case of such supply, the input tax credit will be allowed. Therefore, you should be eligible to claim GST input tax credit on the purchase of eligible goods and services, even if the SEZ unit is allowed to give you goods provided by GST.