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Commercial Taxes Department
Government of Rajasthan

Latest News

Citizen's Corner

Commissioner's Desk

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Commissioner's Desk
Question - How the excise element will be treated for carryover stocks on 1st July'17 under the following scenario: CST BILLING --- COMPANY bills to Distributor and ships goods to Distributor(COMPANY EXCISE INVOICE does not show the name of the stockist), Distributor bills to stockist after charging VAT . Both Distributor and Stockist are not registered with excise. Response -As per proviso to Section 140 (3) of CGST, in case stockist holds goods on 01.07.2017 which have been invoiced from Distributor who is not registered in Central Excise till 30.6.2017, then stockiest shall be allowed to take credit of Excise on presumptive basis with following conditions to be satisfied Stockiest should possess original invoice issued by Distributor upon it. Such stock (on which benefit of excise duty has to be taken on presumptive basis) has to be stored separately. Stockiest has to ensure that such goods were not exempt from levy of excise. For same the precautionary step can be that copy of invoice issued by Company to Distributor is also kept by stockiest. Stockiest has to ensure that such goods are sold within 6 months from 01.07.2017. The stockiest shall be required to charge GST on supply of such goods. Post such supply, details of same have to be uploaded in specific format to GST Network. After submitting the details of such stock, if CGST leviable on such goods is 9% or more than 60% of CGST leviable shall be allowed as credit to stockiest, in other cases where CGST leviable is less than 9% then 40% of the CGST leviable shall be allowed as credit to stockiest. However, it is pertinent to note, that credit of CST paid on such goods shall not be available.
Question - A businessman sells Wheat in jute bags. Whether it is a mixed supply or composite Supply: Response -It is a composite supply of goods as per Sec 2(30) of GST Act. As per Section 8 of GST act, a composite supply comprising two or more supply, one of which is a principal supply, shall be treated as a supply of such principal supply. GST rate notified for such principal supply will be charged. In case of wheat in jute bag, since wheat is a principle supply the rate of wheat will be applicable.
Question - While participating in fairs, a lot of times the participants sell their products at different state locations of different fairs. How do they manage post 1 July 2017now since every state will require a separate registration? Response -There is a provision for registration of Casual Taxable person, which means that a person who has no fixed place of business in the particular state or union territory, and he undertakes any supply in that particular that state where he has no place of business, he is required to obtain registration in that state at least 5 days before he undertakes any supply in particular state. Further it may also be noted that casual taxable person shall be granted registration for 90 days only, which may be extended up to a further period of ninety days, and he is also required to deposit his estimated tax liability in advance. Therefore, before participating in the fair the inventory of the goods being taken away for sale in fair may be maintained and the inventory of the goods sold and the closing stock of the fair shall also be maintained and shall be entered into the books of accounts by sale outside the state and the stock in the proper ledger.
Question - According to the Sales Tax laws �C� forms represent the differential tax amount. Sales tax forms pertaining to one quarter need to be submitted within the next quarter. i.e. - Sales registered till 31st March �17, �C� forms should be submitted by 30th June �17. - Sales registered till 30th June �17 should be submitted till 30th Sept. �17. Will the firm be in a position to get �C� forms issued post 1st July, since the old Sales Tax act would have been repelled, specially for period April to June 17. Response -Provisions of the Central Sales Tax Act shall be applicable for the period of April to June, 2017. Further, in case of C forms, as per Rule 12(7) of CST (R&T) Rules, 1957 it is required to furnish the given forms within 3 months from the end of the period to which the form relates. Accordingly, the firm will be in a position to get issued C forms post 1st July as well.
Question - If a trader is having closing stock of Rs.50lacs, of which 30lacs were purchased from manufacturer who charges Excise duty and CST in Invoice but till now he is not getting Credit on Excise duty and CST as he was registered under VAT only. Will he be able to get Credit of Excise duty and CST on Stock in hand under GST? Response -No Credit of CST paid on stock is admissible. In case such trader has duty paying documents then on the basis of such document credit of whole of the excise duty paid shall be admissible to him. Further, in case such trader only has purchase document and does not have the duty paying document, then credit of excise duty shall be allowed on presumptive basis as per Rule 4 of the transitional provisions. (60% in case rate of CGST is 9% or more and 40% in all other cases.
Question - Is there any rebate provision for SSI units in GST? Response -No, there is no rebate provision for SSI Unit. However, person whose aggregate turnover does not exceed Rs. 20 lacs in the financial year is not required to obtain registration subject to provision of section 22 of GST Act, 2017. Also, a registered person whose turnover did not exceed rupees 75 lakhs in preceding financial year, may opt for a composition levy.
Question -If a dealer opts for composite scheme but in later part of the year he exceeds the composite limit, what will be his liability? How it will be calculated? Response -If a registered person has opted for composition levy under section 10 of CGST/ RGST Act, 2017 and turnover exceeds the limit for composition levy, then in that case such person shall be required to pay tax as per provision of section 9 of CGST/ RGST Act, 2017 from the day when such limit has exceeded. Further such person is required to file intimation in Form GST CMP-04 within 7 days of occurrence of such event
Question -Whether the scheme of exemption certificate would continue, on contracts on which the dealers have exercised the option of exemption certificate? If yes, then in how much time the contractors have to complete the project and discharge the liability under Exemption Certificate. If not, then what are the options available for works contractor, whether he will be eligible to claim input tax credit on the inputs lying in the stock? Response -The option of exemption certificate was available in the RVAT Act, 2017 and now the same act has to be repealed by the powers of GST Act, 2017. Accordingly, the scheme of Exemption Certificate will not continue into the GST regime. Works Contract have been specifically classified as supply of Services (Composite Supply) under Schedule II of the SGST Act, 2017. Accordingly, the tax liability will be discharged @ 18% on the works contracts in the GST regime. Further, the works contractor would be eligible to claim the credit of input duties contained in the stock lying on the preceding the appointed day on the basis of duty paying documents or in terms provision of section 140(6) of CGST Act, 2017. Apart from this, the works contractor shall be eligible to claim credit of inputs, input services and capital assets subject to section 17 of SGST Act, 2017.

Last Updated: 16/12/2020