2nd Edition. 31st March, 2017

The compilation of frequently asked questions on GST brought out by the apex training institute under the Central Board of Excise & Customs (CBEC) the National Academy of Customs, Excise & Narcotics (NACEN), has been extremely well received. These GST FAQs were released on 21st September, 2016 by the Hon’ble Finance Minister and were based on the Model GST Law as on June, 2016. The GST FAQs were translated in many regional languages to ensure dissemination across the country.
A number of significant developments have taken place since the first edition was released. As of now the draft laws of CGST, SGST, IGST, UTGST and Compensation cess along with a host of rules have been approved by GST Council. The Central bills have been introduced in the Parliament; legislation relating to States will be passed by the respective state assemblies. As promised at the time of bringing the first edition, a second edition of the FAQs has been prepared by NACEN based on the aforesaid bills introduced in the Parliament. I congratulate DG, NACEN and his team for the efforts made and am sure that these will go a long way in disseminating knowledge and awareness on GST amongst the Tax officials, Trade and Public.

Najib Shah
Chairman, CBEC

  1. What is Goods and Service Tax (GST)?Answer
  2. What exactly is the concept of destination based tax on consumption?Answer
  3. Which of the existing taxes are proposed to be subsumed under GST?Answer
  4. What principles were adopted for subsuming the above taxes under GST?Answer
  5. Which are the commodities proposed to be kept outside the purview of GST?Answer
  6. What will be the status in respect of taxation of above commodities after introduction of GST?Answer
  7. What will be status of Tobacco and Tobacco products under the GST regime?Answer
  8. What type of GST is proposed to be implemented?Answer
  9. Why is Dual GST required?Answer
  10. Which authority will levy and administer GST?Answer
  11. Why was the Constitution of India amended recently in the context of GST?Answer
  12. How a particular transaction of goods and services would be taxed simultaneously under Central GST (CGST) and State GST (SGST)?Answer
  13. What are the benefits which the Country will accrue from GST?Answer
  14. What is IGST?Answer
  15. Who will decide rates for levy of GST?Answer
  16. What would be the role of GST Council?Answer
  17. What is the guiding principle of GST Council?Answer
  18. How will decisions be taken by GST Council?Answer
  19. Who is liable to pay GST under the proposed GST regime?Answer
  20. What are the benefits available to small tax payers under the GST regime?Answer
  21. How will the goods and services be classified under GST regime?Answer
  22. How will imports be taxed under GST?Answer
  23. How will Exports be treated under GST?Answer
  24. What is the scope of composition scheme under GST?Answer
  25. Whether the composition scheme will be optional or compulsory?Answer
  26. What is GSTN and its role in the GST regime?Answer
  27. How are the disputes going to be resolved under the GST regime?Answer
  28. What is the purpose of Compliance rating mechanism?Answer
  29. Whether actionable claims liable to GST?Answer
  30. Whether transaction in securities be taxable in GST?Answer
  31. What is the concept of Information Return?Answer
  32. Different companies have different types of accounting software packages and no specific format are mandated for keeping records. How will department be able to read into these complex software?Answer
  33. Is there any provision in GST for tax treatment of goods returned by the recipient?Answer
  34. What is Anti-Profiteering measure?Answer
  1. Where is the power to levy GST derived from?Answer
  2. What is the taxable event under GST?Answer
  3. Whether supplies made without consideration will also come within the purview of supply under GST?Answer
  4. Will giving away essential commodities by a charitable institution be taxable activity?Answer
  5. Who can notify a transaction to be supply of goods or services?Answer
  6. What are composite supply and mixed supply and How are these two different from each other?Answer
  7. What is the treatment of composite supply and mixed supply under GST?Answer
  8. Are all goods and services taxable under GST?Answer
  9. What is meant by Reverse Charge?Answer
  10. Is the reverse charge mechanism applicable only to services?Answer
  11. What will be the implications in case of receipt of supply from unregistered persons?Answer
  12. Can any person other than the supplier or recipient be liable to pay tax under GST?Answer
  13. What is the threshold for opting to pay tax under the composition scheme?Answer
  14. What are the rates of tax for composition scheme?Answer
  15. A person availing composition scheme during a financial year crosses the turnover of Rs.50 Lakhs during the course of the year i.e. say he crosses the turnover of Rs.50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?Answer
  16. Will a taxable person, having multiple registrations, be eligible to opt for composition scheme only for a few of registrations?Answer
  17. Can composition scheme be availed of by a manufacturer and a service supplier?Answer
  18. Who are not eligible to opt for composition scheme?Answer
  19. Can the registered person under composition scheme claim input tax credit?Answer
  20. Can the customer who buys from a registered person who is under the composition scheme claim composition tax as input tax credit?Answer
  21. Can composition tax be collected from customers?Answer
  22. How to compute ‘aggregate turnover’ to determine eligibility for composition scheme?Answer
  23. What are the penal consequences if a person opts for the composition scheme in violation of the conditions?Answer
  24. Does the GST Law empower the Government to exempt supplies from the levy of GST?Answer
  25. When exemption from whole of tax collected on goods or services or both has been granted absolutely, can a person pay tax?Answer
  1. What is advantage of taking registration in GST?Answer
  2. Answer
  3. Can a person without GST registration claim ITC and collect tax?Answer
  4. What will be the effective date of registration?Answer
  5. Who are the persons liable to take a Registration under the Model GST Law?Answer
  6. What is aggregate turnover?Answer
  7. Which are the cases in which registration is compulsory?Answer
  8. What is the time limit for taking a Registration under GST?Answer
  9. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?Answer
  10. Whether a person having multiple business verticals in a state can obtain for different registrations?Answer
  11. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?Answer
  12. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?Answer
  13. Whether the Department through the proper officer, can suo-moto proceed to register of a Person under this Act?Answer
  14. Whether the proper officer can reject an Application for Registration?Answer
  15. Whether the Registration granted to any person is permanent?Answer
  16. Is it necessary for the UN bodies to get registration under GST?Answer
  17. Is it necessary for the Govt Organization to get registration?Answer
  18. Who is a Casual Taxable Person?Answer
  19. Who is a Non-resident Taxable Person?Answer
  20. Whether Amendments to the Registration Certificate is permissible?Answer
  21. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of facts?Answer
  22. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person?Answer
  23. Whether Cancellation of Registration Certificate is permissible?Answer
  24. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?Answer
  25. Can the proper Officer Cancel the Registration on his own?Answer
  26. Can a tax payer have multiple ISDs?Answer
  27. Whether the job worker will have to be compulsorily registered?Answer
  28. If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?Answer
  29. Whether the goods will be permitted to be supplied from the place of business of a job worker?Answer
  30. At the time of registration will the assessee have to declare all his places of business?Answer
  31. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?Answer
  32. What is the process of refusal of registration?Answer
  33. Will there be any communication related to the application disposal?Answer
  34. Whether all assesses / dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration?Answer
  35. Can the registration certificate be downloaded from the GSTN portal?Answer
  36. What is the difference between casual and non-resident taxable persons?Answer
  37. What is the responsibility of the taxable person supplying to UN bodies?Answer
  38. Is there an option to take centralized registration for services under GST Law?Answer
  39. Will ISD be required to be separately registered other than the existing tax payer registration?Answer
  40. Is there any facility for digital signature in the GSTN registration?Answer
  41. What will be the time of response by the applicant if any query is raised in the online application?Answer
  42. Who is an ISD?Answer
  43. Can cancellation of registration order be revoked?Answer
  44. What could be the liabilities (in so far as registration is concerned) on transfer of a business?Answer
  45. What will be the time limit for the decision on the on line registration application?Answer
  46. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?Answer
  1. What is the taxable event under GST?Answer
  2. What is the scope of ‘supply’ under the GST law?Answer
  3. What is a taxable supply?Answer
  4. What are the necessary elements that constitute supply under CGST/ SGST Act?Answer
  5. Can a transaction in which any one or more of the above criteria is not fulfilled, be still considered as supply under GST?Answer
  6. Import of Goods is conspicuous by its absence in Section 3 Why?Answer
  7. Are self-supplies taxable under GST?Answer
  8. What do you mean by “supply made in the course or furtherance of business”?Answer
  9. What are the different types of supplies under the GST law?Answer
  10. What are inter-state supplies and intra-state supplies?Answer
  11. An individual buys a car for personal use and after a year sells it to a car dealer. Will the transaction be a supply in terms of CGST/SGST Act? Give reasons for the answer.Answer
  12. A dealer of air-conditioners permanently transfers an air conditioner from his stock in trade, for personal use at his residence. Will the transaction constitute a supply?Answer
  13. Whether provision of service or goods by a club or association or society to its members will be treated as supply or not?Answer
  14. Whether transfer of right to use goods will be treated as supply of goods or supply of service? Why?Answer
  15. Whether supply of software would be treated as supply of goods or supply of services under GST law?Answer
  16. What is a Composite Supply under CGST/ SGST/UTGST Act?Answer
  17. How will tax liability on a composite supply be determined under GST?Answer
  18. Whether goods supplied on hire purchase basis will be treated as supply of goods or supply of services? Why?Answer
  19. What is a mixed supply?Answer
  20. How will tax liability on a mixed supply be determined under GST?Answer
  21. Whether Works contracts and Catering services will be treated as supply of goods or supply of services? Why?Answer
  22. Are there any activities which are treated as neither a supply of goods nor a supply of services?Answer
  23. What is meant by zero rated supply under GST?Answer
  24. Will import of services without consideration be taxable under GST?Answer
  1. What is time of supply?Answer
  2. When does the liability to pay GST arise in respect of supply of goods and Services?Answer
  3. What is time of supply in case of supply of vouchers in respect of goods and services?Answer
  4. Where it is not possible to determine the time of supply in terms of sub-section 2, 3, 4of Section 12 or that of Section 13 of CGST/SGST Act, how will time of supply be determined?Answer
  5. What does “date of receipt of payment” mean?Answer
  6. Suppose, part advance payment is made or invoice issued is for part payment, whether the time of supply will cover the full supply?Answer
  7. What is the time of supply of goods in case of tax payable under reverse charge?Answer
  8. What is the time of supply of service in case of tax payable under reverse charge?Answer
  9. What is the time of supply applicable with regard to addition in the value by way of interest, late fee or penalty or any delayed payment of consideration?Answer
  10. Is there any change in time of supply, where supply is completed prior to or after change in rate of tax?Answer
  11. What is the time of supply, where supply is completed prior to change in rate of tax?Answer
  12. What is the time of supply, where supply is completed after to change in rate of tax?Answer
  13. Let’s say there was increase in tax rate from 18% to 20% w.e.f.1.6.2017. What is the tax rate applicable when services provided and invoice issued before change in rate in April 2017, but payment received after change in rate in June2017?Answer
  14. Let’s say there was increase in tax rate from 18% to 20% w.e.f. 1.6.2017. What is the tax rate applicable when goods are supplied and invoice issued after change in rate in June 2017, but full advance payment was already received in April 2017?Answer
  15. What is the time period within which invoice has to be issued for supply of Goods?Answer
  16. What is the time period within which invoice has to be issued for supply of Services?Answer
  17. What is the time period within which invoice has to be issued in a case involving continuous supply of goods?Answer
  18. What is the time period within which invoice has to be issued in a case involving continuous supply of services?Answer
  19. What is the time period within which invoice has to be issued where the goods being sent or taken on approval for sale?Answer
  1. What are the Payments to be made in GST regime?Answer
  2. Who is liable to pay GST?Answer
  3. When does liability to pay GST arises?Answer
  4. What are the main features of GST payment process?Answer
  5. How can payment be done?Answer
  6. When is payment of taxes to be made by the Supplier?Answer
  7. Answer
  8. What happens if the taxable person files the return but does not make payment of tax?Answer
  9. Which date is considered as date of deposit of the tax dues – Date of presentation of cheque or Date of payment or Date of credit of amount in the account of government?Answer
  10. What are E-Ledgers?Answer
  11. What is a tax liability register?Answer
  12. What is a Cash Ledger?Answer
  13. What is an ITC Ledger?Answer
  14. What is the linkage between GSTN and the authorized Banks?Answer
  15. Can a tax payer generate challan in multiple sittings?Answer
  16. Can a challan generated online be modified?Answer
  17. Is there a validity period of challan?Answer
  18. What is a CPIN?Answer
  19. What is a CIN and what is its relevance?Answer
  20. Answer
  21. What does the expression “Other dues” referred to above mean?Answer
  22. What is an E-FPB?Answer
  23. What is TDS?Answer
  24. How will the Supplier account for this TDS while filing his return?Answer
  25. How will the TDS Deductor account for such TDS?Answer
  26. What is Tax Collected at Source (TCS)?Answer
  27. What does the expression “Net value of taxable supplies” mean?Answer
  28. Is the pre-registration of credit card necessary in the GSTN portal for the GST payment?Answer
  1. What is job work?Answer
  2. Whether goods sent by a taxable person to a job worker will be treated as supply and liable to GST? Why?Answer
  3. Is a job worker required to take registration?Answer
  4. Whether the goods of principal directly supplied from the job worker’s premises will be included in the aggregate turnover of the job worker?Answer
  5. Can a principal send inputs and capital goods directly to the premises of job worker without bringing it to his premises?Answer
  6. Can the principal supply the goods directly from the premises of the job worker without bringing it back to his own premises?Answer
  7. Under what circumstances can the principal directly supply goods from the premises of job worker without declaring the premises of job worker as his additional place of business?Answer
  8. What are the provisions concerning taking of ITC in respect of inputs/capital goods sent to a job worker?Answer
  9. What happens when the inputs or capital goods are not received back or supplied from the place of business of job worker within prescribed time period?Answer
  10. Some capital goods like jigs and fixtures are non-usable after their use and normally sold as scrap. What is the treatment of such items in job work provisions?Answer
  11. What would be treatment of the waste and scrap generated during the job work?Answer
  12. Whether intermediate goods can also be sent for job work?Answer
  13. Who is responsible for the maintenance of proper accounts related to job work?Answer
  14. Are the provisions of job work applicable to all categories of goods?Answer
  15. Is it compulsory that job work provisions should be followed by the principal?Answer
  16. Should job worker and principal be located in same State or Union territory?Answer
  1. What is input tax?Answer
  2. Answer
  3. Answer
  4. Is credit of all input tax charged on supply of goods or services allowed under GST?Answer
  5. What are the conditions necessary for obtaining ITC?Answer
  6. Where the goods against an invoice are received in lots or instalments, how will a registered person be entitled to ITC?Answer
  7. Can a person take input tax credit without payment of consideration for the supply along with tax to the supplier?Answer
  8. Answer
  9. Who will get the ITC where goods have been delivered to a person other than taxable person (‘bill to’- ‘ship to ’scenarios)?Answer
  10. What is the time limit for taking ITC and reasons therefor?Answer
  11. Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act,1961, will ITC be allowed in such cases?Answer
  12. Answer
  13. Answer
  14. Sometimes goods are destroyed or lost due to various reasons? Can a person take ITC to the extent of such goods?Answer
  15. Can a registered person get ITC with respect of goods or services used for construction of a building for business purposes?Answer
  16. What is the ITC entitlement of a newly registered person?Answer
  17. A person becomes liable to pay tax on 1st August, 2017and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on: (a) 1st August, 2017 (b) 31st July, 2017 (c) 15th August, 2017 (d) He cannot take credit for the past periodAnswer
  18. What is the eligibility of input tax credit on inputs in stock for a person who obtains voluntary registration?Answer
  19. What would be input tax eligibility in cases where there is a change in the constitution of a registered person?Answer
  20. Where goods or services or both received by a taxable person are used for effecting both taxable and non-taxable supplies, whether the input tax credit is available to the registered taxable person?Answer
  21. If input tax credit is allowed only in respect of goods or services or both for effecting taxable supplies, would it not lead to loss of input tax credit on exempt supplies when exported?Answer
  22. Which of the following is included for computation of taxable supplies for the purpose of availing credit? (a) Zero-rated supplies (b) Exempt supplies (c) BothAnswer
  23. Where goods or services received by a registered person are used partly for the purpose of business and partly for other purposes, whether the input tax credit is available to the person?Answer
  24. A person paying tax under compounding scheme crosses the compounding threshold and becomes a regular taxable person. Can he avail ITC and if so from what date?Answer
  25. Are there any special provisions in respect of banking companies?Answer
  26. Mr. A, a registered person was paying tax under composition scheme up to 30th July, 2017. However, w.e.f 31st July, 2017, Mr. A becomes liable to pay tax under regular scheme. Is he eligible for ITC?Answer
  27. Mr. B applies for voluntary registration on 5th June, 2017 and obtained registration on 22nd June, 2017. Mr. B is eligible for input tax credit on inputs in stock as on…………..Answer
  28. What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt?Answer
  29. Is there any restriction on period for availment of ITC?Answer
  30. What happens where the details of inward supplies furnished by the recipient do not match with the outward supply details furnished by the supplier in his valid return?Answer
  31. Is input tax credit allowed only after matching?Answer
  32. Can provisionally allowed ITC be used for payment of all liabilities?Answer
  33. What will be the tax impact when capital goods on which ITC has been taken are supplied by taxable person?Answer
  34. What is the tax implication of supply of capital goods by a registered person who had taken ITC on such capital goods?Answer
  1. What is Input Service Distributor (ISD)?Answer
  2. What are the requirements for registration as ISD?Answer
  3. What are the documents for distribution of credit by ISD?Answer
  4. Can an ISD distribute the input tax credit to all suppliers?Answer
  5. It is not possible many a times to establish a one-to-one link between quantum of input services used in the course or furtherance of business by a supplier. In such situations, how distribution of ITC by the ISD is to be done?Answer
  6. What does the turnover used for ISD cover?Answer
  7. Is the ISD required to file return?Answer
  8. Can a company have multiple ISD?Answer
  9. What are the provisions for recovery of excess/wrongly distributed credit by ISD?Answer
  10. Whether CGST and IGST credit can be distributed by ISD as IGST credit to recipients located in different States?Answer
  11. Whether SGST / UTGST credit can be distributed as IGST credit by an ISD to recipients located in different States?Answer
  12. Whether the ISD can distribute the CGST and IGST Credit as CGST credit?Answer
  13. Whether the SGST/ UTGST and IGST Credit can be distributed as SGST/UTGST credit?Answer
  14. How to distribute common credit among all the recipients of an ISD?Answer
  15. The ISD may distribute the CGST credit within the State as____ (a) IGST (b) CGST (c) SGST (d) Any of the above.Answer
  16. The ISD may distribute the CGST and IGST credit to recipient outside the State as_______ (a) IGST (b) CGST (c) SGSTAnswer
  17. Answer
  18. Whether the excess credit distributed could be recovered from ISD by the department?Answer
  19. What are the consequences of credit distributed in contravention of the provisions of the Act?Answer
  1. What is the purpose of returns?Answer
  2. Who needs to file Return in GST regime?Answer
  3. What type of outward supply details are to be filed in the return?Answer
  4. Is the scanned copy of invoices to be uploaded along with GSTR-1?Answer
  5. Whether all invoices will have to be uploaded?Answer
  6. Whether description of each item in the invoice will have to be uploaded?Answer
  7. Whether value for each transaction will have to be fed? What if no consideration?Answer
  8. Can a recipient feed information in his GSTR-2 which has been missed by the supplier?Answer
  9. Does the taxable person have to feed anything in the GSTR-2 or everything is auto-populated from GSTR-1?Answer
  10. What if the invoices do not match? Whether ITC is to be given or denied? If denied, what action is taken against supplier?Answer
  11. What will be the legal position in regard to the reversed input tax credit if the supplier later realizes the mistake and feeds the information?Answer
  12. What is the special feature of GSTR-2?Answer
  13. Do tax payers under the composition scheme also need to file GSTR-1 and GSTR-2?Answer
  14. Do Input Service Distributors (ISDs) need to file separate statement of outward and inward supplies with their return?Answer
  15. How does a taxpayer get the credit of the tax deducted at source on his behalf? Does he need to produce TDS certificate from the deductee to get the credit?Answer
  16. Which type of taxpayers need to file Annual Return?Answer
  17. Is an Annual Return and a Final Return one and the same?Answer
  18. If a return has been filed, how can it be revised if some changes are required to be made?Answer
  19. How can taxpayers file their returns?Answer
  20. What precautions, a taxpayer is required to take for a hassle free compliance under GST?Answer
  21. Is it compulsory for a taxpayer to file return by himself?Answer
  22. What is the consequence of not filing the return within the prescribed date?Answer
  23. What happens if ITC is taken on the basis of a document more than once?Answer
  24. Whether the amount of credit detected by the system on account of mis-match between GSTR-1 and GSTR-2 and recovered as output tax can be reclaimed?Answer
  1. Who is the person responsible to make assessment of taxes payable under the Act?Answer
  2. When can a taxable person pay tax on a provisional basis?Answer
  3. What is the latest time by which final assessment is required to be made?Answer
  4. Where the tax liability as per the final assessment is higher than in provisional assessment, will the taxable person be liable to pay interest?Answer
  5. What recourse may be taken by the officer in case proper explanation is not furnished for the discrepancy detected in the return filed, while conducting scrutiny under section 61 of CGST ACT?Answer
  6. If a taxable person fails to file the return required under law (under section 39 (monthly/quarterly), or 45 (final return), what legal recourse is available to the tax officer?Answer
  7. Under what circumstances can a best judgment assessment order issued under section 60 be withdrawn?Answer
  8. What is the time limit for passing assessment order under section 62 and section 63?Answer
  9. What is the legal recourse available in respect of a person who is liable to pay tax but has failed to obtain registration?Answer
  10. Under what circumstances can a tax officer initiate Summary Assessment?Answer
  11. Other than appellate remedy, is there any other recourse available to the taxpayer against a summary assessment order?Answer
  12. Is summary assessment order to be necessarily passed against the taxable person?Answer
  13. Who can conduct audit of taxpayers?Answer
  14. Whether any prior intimation is required before conducting the audit?Answer
  15. What is the period within which the audit is to be completed?Answer
  16. What is meant by commencement of audit?Answer
  17. What are the obligations of the taxable person when he receives the notice of audit?Answer
  18. What would be the action by the proper officer upon conclusion of the audit?Answer
  19. Under what circumstances can a special audit be instituted?Answer
  20. Who can serve the notice of communication for special audit?Answer
  21. Who will do the special audit?Answer
  22. What is the time limit to submit the audit report?Answer
  23. Who will bear the cost of special audit?Answer
  24. What action the tax authorities may take after the special audit?Answer
  1. What is refund?Answer
  2. Can unutilized Input tax credit be allowed as refund?Answer
  3. Will unutilized ITC at the end of the financial year (after introduction of GST) be refunded?Answer
  4. Answer
  5. Whether purchases made by Embassies or UN are taxed or exempted?Answer
  6. What is the time limit for taking refund?Answer
  7. Whether principle of unjust enrichment will be applicable in refund?Answer
  8. In case the tax has been passed on to the consumer, whether refund will be sanctioned?Answer
  9. Is there any time limit for sanctioning of refund?Answer
  10. Can refund be withheld by the department?Answer
  11. Where the refund is withheld under Section 54(11) of the CGST/SGST Act, will the taxable person be given interest?Answer
  12. Is there any minimum threshold for refund?Answer
  13. How will the refunds arising out of existing law be paid?Answer
  14. Whether refund can be made before verification of documents?Answer
  15. In case of refund under exports, whether BRC is necessary for granting refund?Answer
  16. Will the principle of unjust enrichment apply to exports and supplies to SEZ Units?Answer
  17. Today under VAT/CST merchant exporters can purchase goods without payment of tax on furnishing of a declaration form. Will this system be there in GST?Answer
  18. Answer
  19. How will the applicant prove that the principle of unjust enrichment does not apply in his case?Answer
  20. What is the time period within which an acknowledgement of a refund claim has to be given?Answer
  21. What is the time period within which provisional refund has to be given?Answer
  22. Is there any specified format for filing refund claim?Answer
  23. Is there any specified format for sanction of refund claim?Answer
  24. What happens if there are deficiencies in the refund claim?Answer
  25. Can the refund claim be rejected without assigning any reasons?Answer
  1. Answer
  2. What if person chargeable with tax, pays the amount along with interest before issue of show cause notice under section 73?Answer
  3. If show cause notice is issued under Section 73 and thereafter the noticee makes payment along with applicable interest, is there any need to adjudicate the case?Answer
  4. What is the relevant date for issue of Show Cause Notice?Answer
  5. Is there any time limit for adjudication the cases?Answer
  6. Is there any immunity to a person chargeable with tax in cases of fraud/suppression of facts/ willful misstatement, who pays the amount of demand along-with interest before issue of notice?Answer
  7. If notice is issued under Section 74 and thereafter the noticee makes payment, is there any need to adjudicate the case?Answer
  8. In case a notice is adjudicated under Section 74 and order issued confirming tax demand and penalty, does the noticee have any option to pay reduced penalty?Answer
  9. What will happen in cases where notice is issued but order has not been passed under section 73 & 74 within time specified for adjudication under these sections?Answer
  10. What happens if a person collects tax from another person but does not deposit the same with Government?Answer
  11. In case the person does not deposit tax collected in contravention of Section 76(1), what is the proper course of action to be taken?Answer
  12. Answer
  13. What are the modes of recovery of tax available to the proper officer?Answer
  14. Whether the payment of tax dues can be made in installments?Answer
  15. What is the course of recovery in cases where the tax demand confirmed is enhanced in appeal/ revision proceedings?Answer
  16. What happens to tax dues where the Company (taxable person) goes into liquidation?Answer
  17. If a taxable person with pending tax dues, transfers his business to another person, what would happen to the tax dues?Answer
  18. What is the liability of directors of the Company (taxable person) under liquidation?Answer
  19. What is the liability of partners of a partnership firm (Taxable person) to pay outstanding tax?Answer
  20. What happens when the estate of a taxable person is under the control of Court of Wards?Answer
  21. What happens to the tax liability of a taxable person, whose business is carried on by any guardian/ trustee or agent of a minor?Answer
  1. Whether any person aggrieved by any order or decision passed against him has the right to appeal?Answer
  2. What is the time limit to file appeal to Appellate Authority (AA)?Answer
  3. Whether the appellate authority has any powers to condone the delay in filing appeal?Answer
  4. Whether the appellate authority has any powers to allow additional grounds not specified in the appeal memo?Answer
  5. The order passed by Appellate Authority has to be communicated to whom?Answer
  6. What is the amount of mandatory pre-deposit which should be made along with every appeal before Appellate Authority?Answer
  7. Can the Department apply to AA for ordering a higher amount of pre-deposit?Answer
  8. What about the recovery of the balance amount?Answer
  9. Whether in an appeal the AA can pass an order enhancing the quantum of duty/ fine/ penalty/ reduce the amount of refund/ITC from the one passed by the original authority?Answer
  10. Does the AA have the power to remand the case back to the adjudicating authority for whatever reasons?Answer
  11. Can any CGST/SGST authority revise any order passed under the Act by his subordinates?Answer
  12. Can the “revisional authority” order for staying of operation of any order passed by his subordinates pending such revision?Answer
  13. Are there any fetters to the powers of “revisional authority” under GST to revise orders of subordinates?Answer
  14. When the Tribunal is having powers to refuse to admit the appeal?Answer
  15. What is the time limit within which appeal has to be filed before the Tribunal?Answer
  16. Can the Tribunal condone delay in filing appeal before it beyond the period of 3/6 months? If so, till what time?Answer
  17. What is the time limit for filing memorandum of cross objections before Tribunal?Answer
  18. Whether interest becomes payable on refund of pre-deposit amount?Answer
  19. An appeal from the order of Tribunal lies to which forum?Answer
  20. What is the time limit for filing an appeal before the High Court?Answer
  1. What is the meaning of the term “Search”?Answer
  2. What is the meaning of the term “Inspection”?Answer
  3. Who can order for carrying out “Inspection” and under what circumstances?Answer
  4. Can the proper officer authorize Inspection of any assets/premises of any person under this Section?Answer
  5. Who can order for Search and Seizure under the provisions of CGST Act?Answer
  6. What is meant by ‘reasons to believe’?Answer
  7. Is it mandatory that such ‘reasons to believe’ has to be recorded in writing by the proper officer, before issuing authorization for Inspection or Search and Seizure?Answer
  8. What is a Search Warrant and what are its contents?Answer
  9. When does goods become liable to confiscation under the provisions of CGST/SGST Act?Answer
  10. What powers can be exercised by an officer during valid search?Answer
  11. What is the procedure for conducting search?Answer
  12. What are the basic requirements to be observed during Search operations?Answer
  13. Can a CGST/SGST officer access business premises under any other circumstances?Answer
  14. What is meant by the term ‘Seizure’?Answer
  15. Does GST Act(s) have any power of detention of goods and conveyances?Answer
  16. What is the distinction in law between ‘Seizure’ and ‘Detention’?Answer
  17. What are the safeguards provided in GST Act(s) in respect of Search or Seizure?Answer
  18. Is there any special document required to be carried during transport of taxable goods?Answer
  19. What is meant by the term “arrest”?Answer
  20. When can the proper officer authorize ‘arrest’ of any person under CGST / SGST Act?Answer
  21. What are the safeguards provided under CGST /SGST Act for a person who is placed under arrest?Answer
  22. What are the precautions to be taken during arrest?Answer
  23. What are the broad guidelines for arrest followed in CBEC?Answer
  24. What is a cognizable offence?Answer
  25. What is a non-cognizable offence?Answer
  26. What are cognizable and non-cognizable offences under CGST Act?Answer
  27. When can the proper officer issue summons under CGST Act?Answer
  28. What are the responsibilities of the person so summoned?Answer
  29. What can be the consequences of non- appearance to summons?Answer
  30. What are the guidelines for issue of summons?Answer
  31. What are the precautions to be observed while issuing summons?Answer
  32. Are there any class of officers who are required to assist CGST/SGST officers?Answer
  1. What are the prescribed offences under CGST/SGST Act?Answer
  2. What is meant by the term penalty?Answer
  3. What are the general disciplines to be followed while imposing penalties?Answer
  4. What is the quantum of penalty provided for in the CGST /SGST Act?Answer
  5. Is any penalty prescribed for any person other than the taxable person?Answer
  6. What is the penalty provided for any contravention for which no separate penalty has been prescribed under CGST/SGST Act?Answer
  7. What action can be taken for transportation of goods without valid documents or attempted to be removed without proper record in books?Answer
  8. What is the penalty prescribed for a person who opts for composition scheme despite being ineligible for the said scheme?Answer
  9. What is meant by confiscation?Answer
  10. Under which circumstances can goods be confiscated under CGST/SGST Act?Answer
  11. What happens to the goods upon confiscation of goods by the proper officer?Answer
  12. After confiscation, is it required to give option to the person to redeem the goods?Answer
  13. Can any conveyance carrying goods without cover of prescribed documents be subject to confiscation?Answer
  14. What is Prosecution?Answer
  15. Which are the offences which warrant prosecution under the CGST/SGST Act?Answer
  16. What is the punishment prescribed on conviction of any offence under the CGST/SGST Act?Answer
  17. What are cognizable and non-cognizable offences under CGST/SGST Act?Answer
  18. Is prior sanction of competent authority mandatory for initiating prosecution?Answer
  19. Is ‘mensrea’ or culpable mental state necessary for prosecution under CGST/SGST Act?Answer
  20. What is a culpable state of mind?Answer
  21. Can a company be proceeded against or prosecuted for any offence under the CGST/SGST Act?Answer
  22. What is meant by compounding of offences?Answer
  23. Can offences under CGST/SGST Act be compounded?Answer
  24. Are there any monetary limits prescribed for compounding of offence?Answer
  25. What is the consequence of compounding of an offence under CGST/SGST Act?Answer
  1. What is the need for the Place of Supply of Goods and Services under GST?Answer
  2. Why are place of supply provisions different in respect of goods and services?Answer
  3. What proxies or assumptions in a transaction can be used to determine the place of supply?Answer
  4. What is the need to have separate rules for place of supply in respect of B2B (supplies to registered persons) and B2C (supplies to unregistered persons) transactions?Answer
  5. What would be the place of supply where goods are removed?Answer
  6. What will be the place of supply if the goods are delivered by the supplier to a person on the direction of a third person?Answer
  7. What will be the place of supply where the goods or services are supplied on board a conveyance, such as a vessel, an aircraft, a train or a motor vehicle?Answer
  8. What is the default presumption for place of supply in respect of B2B supply of services?Answer
  9. What is the default presumption for place of supply in respect of unregistered recipients?Answer
  10. What would be the place of supply of services provided for organizing an event, say, IPL cricket series which is held in multiple states?Answer
  11. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?Answer
  12. What will be the place of supply of goods services by way of transportation of goods, including mail or courier?Answer
  13. What will be the place of supply of passenger transportation service, if a person travels from Mumbai to Delhi and back to Mumbai?Answer
  14. Suppose a ticket/ pass for anywhere travel in India is issued by M/s Air India to a person What will be the place of supply?Answer
  15. What will be the place of supply for mobile connection? Can it be the location of supplier?Answer
  16. A person in Goa buys shares from a broker in Delhi on NSE (in Mumbai). What will be the place of supply?Answer
  17. A person from Mumbai goes to Kullu-Manali and takes some services from ICICI Bank in Manali. What will be the place of supply?Answer
  18. A person from Gurgaon travels by Air India flight from Mumbai to Delhi and gets his travel insurance done in Mumbai. What will be the place of supply?Answer
  1. What is GSTN?Answer
  2. What was need to create GSTN?Answer
  3. What is the genesis of GSTN?Answer
  4. What is the equity structure and Revenue Model of GSTN?Answer
  5. What services will be rendered by GSTN?Answer
  6. What is the interface system between GSTN and the States/CBEC?Answer
  7. What will be the role of GSTN in registration?Answer
  8. What is the role of Infosys in GSTN?Answer
  9. What are the basic features of GST common portal?Answer
  10. What is the concept of GST Eco-system?Answer
  11. What is GSP (GST Suvidha Provider)?Answer
  12. What will be the role of GST Suvidha Providers (GSP)?Answer
  13. What are the benefits to taxpayers in using the GSPs?Answer
  14. What are the functions which a taxpayer will perform at the GST Common Portal being developed and maintained by GSTN for the taxpayers?Answer
  15. What will be the role of tax officers from State and Central Govt in respect of the GST system being developed by GSTN?Answer
  16. Will GSTN generate a unique identification for each invoice line in GSTN system?Answer
  17. Can invoice data be uploaded on day to day basis?Answer
  18. Will GSTN provide tools for uploading invoice data on GST portal?Answer
  19. Will GSTN be providing mobile based Apps to view ledgers and other accounts?Answer
  20. Will GSTN provide separate user ID and password for GST Practitioner to enable them to work on behalf of their customers (Taxpayers) without requiring user ID and password of taxpayers, as happens today?Answer
  21. Will tax payer be able to change the GST Practitioner once chosen in above mentioned facility?Answer
  22. Will existing taxpayers under Central Excise or Service Tax or State VAT have to apply for fresh registration under GST?Answer
  23. What material will be provided by GSTN, on various aspects of working on GST portal, for the benefit of taxpayers?Answer
  24. Will the return and registration data furnished by the taxpayers on the GST Common Portal will remain Confidential?Answer
  25. What are the security measures being taken by GSTN to ensure security of the GST system?Answer
  1. Will CENVAT credit (or VAT credit) carried forward in the last return prior to GST under existing law be available as ITC under GST?Answer
  2. What are those conditions?Answer
  3. A registered person, say, purchases capital goods under the existing law (Central Excise) in the June quarter of 2017-18. Though the invoice has been received within 30th June but the capital goods are received on 5th July, 2017 (i.e. in GST regime). Will such a person get full credit of CENVAT in GST regime?Answer
  4. VAT credit was not available on items 'X' & 'Y' as capital goods in the existing law (Central Excise). Since they are covered in GST, can the registered taxable person claim it now?Answer
  5. Assuming the registered person has wrongly enjoyed the credit (Refer to Q4) under the existing law, will the recovery be done under the GST Law or the existing law?Answer
  6. Give two examples of registered taxable persons who are not liable to be registered under the existing law (Central Excise / VAT) but are required to be registered under GST?Answer
  7. Answer
  8. A registered person has excess ITC of Rs 10000 in his last VAT return for the period immediately preceding the appointed day and under GST he opts for composition scheme Can he carry forward the aforesaid excess ITC to GST?Answer
  9. Sales return under CST (i.e. Central Sales Tax Act) is allowable as deduction from the turnover within six months? If, say, goods are returned in GST regime by a buyer within six months from appointed day, will it become taxable in GST?Answer
  10. Shall a manufacturer or a job worker become liable to pay tax if the inputs or semi-finished goods sent for job work under the existing law are returned after completion of job work after the appointed day?Answer
  11. What happens if the job worker does not return the goods within the specified time?Answer
  12. Can a manufacturer transfer have finished goods sent for testing purpose to the premises of any other taxable person?Answer
  13. If finished goods removed from a factory for carrying out certain processes under existing law are returned on or after the appointed day, whether GST would be payable?Answer
  14. When tax shall become payable in GST on manufactured goods sent to a Job worker for carrying out tests or any other process not amounting to manufacture under the existing law?Answer
  15. Is extension of two months as discussed in section 141 automatic?Answer
  16. What is the time limit for issue of debit/credit note(s) for revision of prices?Answer
  17. What will be the fate of pending refund of tax/interest under the existing law?Answer
  18. What will be fate of any appeal or revision relating to a claim of CENVAT/ITC on VAT which is pending under the existing law? If say, it relates to output liability then?Answer
  19. If the appellate or revisional order goes in favour of the assessee, whether refund will be made in GST? What will happen if the decision goes against the assessee?Answer
  20. How shall the refund arising from revision of return(s) furnished under the existing law be dealt in GST?Answer
  21. If any goods or services are supplied in GST, in pursuance of contract entered under existing law, which tax will be payable?Answer
  22. Tax on a particular supply of goods/services is leviable under the existing law. Will GST be also payable if the actual supply is made in GST regime?Answer
  23. In pursuance of any assessment or adjudication proceedings instituted, after the appointed day, under the existing law, an amount of tax, interest, fine or penalty becomes refundable. Shall such amount be refundable under the GST law?Answer
  24. If services are received by ISD under the earlier law, can the ITC relating to it be distributed in GST regime?Answer
  25. Where any goods are sold on which tax was required to be deducted at source under State VAT law and an invoice was also issued before the appointed day, shall deduction of tax at source shall be made under this Act if the payment is made after the appointed day?Answer
  26. Goods were sent on approval not earlier than six months before the appointed day but are returned to the seller after 6 months from the appointed day, will tax be payable under GST?Answer

Prepared by: Shri Deepak Mata, Assistant Director, NACEN Mumbai and Sanjeev Nair, Examiner, CESTAT Mumbai under the supervision of Shri Samir Bajaj, Additional Director, NACEN, Mumbai

Reviewed by: S/Shri P.K. Mohanty, Consultant, CBEC (Chap.1); Shri Vishal Pratap Singh, DC(GST), GST Policy Wing, CBEC (Chap. 2), Dr. P.D. Vaghela, CCT, Gujarat (Chap. 3&7); Shri D.P. Nagendra Kumar, Pr. ADG, DGCEI, Bengaluru (Chap. 4 to 6); Shri Upender Gupta, Commissioner, GST, CBEC (Chap. 8 to 11); Shri Ritvik Pandey, CCT, Karnataka (Chap.12); Shri Arun Kumar Mishra, Jt. Secretary, CTD, Bihar (Chap. 13); Shri Khalid Anwar, Senior JCT, WB (Chap.14 & 24); Shri Ajay Jain, Pr. Commissioner of Customs, Ahmedabad (Chap. 15); Shri Bankey Behari Agrawal, Principal Commissioner of Customs; Shri Shashank Priya, ADG, DG GST, CBEC (Chap. 17 to 20); Shri G.D. Lohani, CCE, Faridabad (Chap. 21 & 22); and Shri Prakash Kumar, CEO, GSTN (Chap.23).

Comments and Suggestions on FAQ may please be sent to

This FAQ on GST compiled by NACEN and vetted by the Source Trainers is based on the CGST/SGST/UTGST/IGST Act(s). This FAQ is for training and academic purposes only.

The information in this booklet is intended only to provide a general overview and is not intended to be treated as legal ad vice or opinion. For greater details, you are requested to refer to the respective CGST/SGST/UTGST/IGST Acts.

The FAQs refer to CGST and SGST Acts as CGST/SGST as CGST Act and SGST Act are identical in most of the provisions. CGST Act has been introduced in the Parliament. The SGST Acts will be passed by respective state legislatures. A few provisions may be specific to state and may not be in CGST Act.