Question 1: What is the final clarity on Business transfers ( law which addresses slump sale exemption of the present regime ) ?
Answer: Services by way of transfer of a going concern, as a whole or an independent part thereof, would continue to be exempt under GST. This has been provided in Clause 32 of the Schedule outlining the service tax exemptions to be continued under GST.
Question 2: We are fully export unit providing IT services to US clients. I understand that we export does not comes under GST. But do we have to Register under GST? Is it compulsory for us?
Answer : Yes you would need to obtain a registration. Registration is mandatory if the value of taxable supplies effected exceeds Rs. 20 lacs. It is important to note that exports are zero-rated supplies and not non-taxable supplies. Hence, it is important that registration be obtained and other compliance procedures duly observed.
Legally, it is important to note that a transaction would qualify as exports, only if the prescribed conditions are fulfilled. Thus, procedure-wise, ‘export’ is a claim that would be made by the supplier and it should go through a test by the tax office – to ensure that the conditions are fulfilled. Thus, it is imperative that an exporter should be registered. Further, an exporter is eligible to claim a refund of input tax credits. This, once again, makes it mandatory that registration is obtained – only a registered person can make an application for refund.”
Question 3: Suppose our project is in West Bengal and we need to raise invoice from Maharashtra (from our H.O. Mumbai) , then which tax we can apply because in Maharashtra we are going to apply GST and in West Bengal, I don't know the which tax structure is there. Please explain also the percentage of GST or any other tax.
Answer : If the supply is being rendered by a tax payer in Mumbai to a recipient in West Bengal, the tax that would be applicable would ordinarily be IGST West Bengal. However, if the tax payer is providing such services from an office / establishment in West Bengal, the applicable tax would ordinarily be CGST + SGST West Bengal. Management of business consultant services would typically fall under the 18% rate.
As you would appreciate, the individual facts would determine the location of the supplier, the location of the recipient, the place of supply and the rate of tax.
Question 4 : We are Shrink Wrapped Software Package providing company and our concern is whether our software package will be considered under Goods or Service.
Answer : Under the GST Rate Schedule for goods released by the GST Council, there is a specific entry for “Discs, tapes, solid-state nonvolatile storage devices, "smart cards" and other media for the recording of sound or of other phenomena, whether or not recorded, including matrices and masters for the production of discs, but excluding products of Chapter 37” under HSN 8523 in the said schedule. Under this HSN, software falls under “HSN 8523 8020 – Information technology software”.
Given this, supply of IT software on physical media should qualify as ‘goods’ under the GST regime.
Question 5: We are a software company specialising in ERP products. I am trying to register for GST but am unable to find the HSN code which would be applicable to us. Can you please help us in providing the relevant HSN code?
Answer : These HSN and SAC codes are available in the drop down menu in the “goods/ services” tab at the time of enrolment on the GST portal. Please find below the link where the detailed list of HSN codes can be found which is being used for the GSTN registration:
HSN codes – Please click on the link to open the Customs Tariff available on the CBEC website - http://www.cbec.gov.in/htdocs-cbec/customs/cst1617-300616/cst1617-3006-idx
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