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Question & Answer


G

Gaurav

21 Sep 2020

I am paying tax on inputs (Rs. 100 cost) which are taxed at 5% (Rs. 5). I also avail some services on the same product (Rs.100 cost) which are taxed at 18% (Rs. 18). Now I sell the product for Rs.300 which is taxed at 5% (Rs. 15). Am I eligible for GST refund in this case of Rs.8 or not?

Replies (8)                          

Gaurav    21 Sep 2020

Services in this case are of Amazon or any other online marketplace as such which are taxed at 18%

CA Yash Shah       21 Sep 2020

Hi Gaurav, inverted duty structure is a respite available in such cases. However since the higher rate of GST is paid for services, it is not included. This section is only applicable when input is that of Goods and GST is paid on that which is more than that of Output. Hence you won't be eligible for any refund

Gaurav    21 Sep 2020

Thanks for the explanation Yash sir. Will the case remain the same after Gujarat High Court judgement last month which included "services" too in definition of "input" ?

CA Yash Shah       21 Sep 2020

Hi Gaurav, let me check this judgement and get back. You can get in touch with me at 7045760379, please drop me a message

CA Jaya Agarwal       22 Sep 2020

Dear Sir,
According to my view, you are definitely eligible for tax credit. Input means input on goods and services both and we can utilize multiple inputs of goods and expenses as well for offsetting the liability arising from that goods.

I hope it is clear. For more details call at 7667559772, ca.jkagarwal2011@gmail.com

CA Yash Shah       22 Sep 2020

Hi Jaya, he is asking about refund, offsetting of liability was allowed. Hi Gaurav, I have gone through the judgement, basis that refund can be claimed on unutilised credit under inverted duty structure

Gaurav    23 Sep 2020

Thanks Yash sir. Now yesterday Madras HC has given a contradicting judgement saying "services" are excluded in this leaving all of us taxpayers perplexed on what to follow.

CA Yash Shah       23 Sep 2020

Ideally there should not be any difference between goods and services however we love complexities. Taxpayers suffer at the end

T&C apply


G

Gaurav

21 Sep 2020

I am paying tax on inputs (Rs. 100 cost) which are taxed at 5% (Rs. 5). I also avail some services on the same product (Rs.100 cost) which are taxed at 18% (Rs. 18). Now I sell the product for Rs.300 which is taxed at 5% (Rs. 15). Am I eligible for GST refund in this case of Rs.8 or not?

Replies (1)                          

CA Jaya Agarwal       22 Sep 2020

Dear Sir,
According to my view, you are definitely eligible for tax credit. Input means input on goods and services both and we can utilize multiple inputs of goods and expenses as well for offsetting the liability arising from that goods.

I hope it is clear. For more details call at 7667559772, ca.jkagarwal2011@gmail.com

T&C apply


S

Sarita Jaiswal

21 Sep 2020

If i show car rental income in income from other sources in itr-1 then can i claim depreciation on it

Replies (3)                          

CA Rahul Singhal       21 Sep 2020

no you can not claim depreciation on it untill you show it as a business income.

CA RAHUL SINGHAL
9910550324

CA Yash Shah       21 Sep 2020

Hi, you can claim depreciation only on business assets. For further clarifications, please connect at 7045760379

CA Jaya Agarwal       22 Sep 2020

Dear Sir,
If income from car rental is your routine course of business, then you can show it in ITR-3 as business income and avail depreciation.
For more details call at 7667559772, ca.jkagarwal2011@gmail.com

T&C apply


A

Amrinder Kaur

21 Sep 2020

Creating invoice without GST registration

Replies (3)                          

CA Yash Shah       21 Sep 2020

Hi, it can be done if you are below threshold limit as prescribed. Please call on 7045760379 for further clarification

CA Rahul Singhal       21 Sep 2020

YOU CAN NOT ISSUE TAX INVOICE UNTILL YOU HAVE A VALID GST REGISTRATION NUMBER .
you can issue bill of supply without gst registration untill you don't cross the threshold limit for gst registration after that you have to take a gst registration.

CA Rahul Singhal
9910550324

CA Jaya Agarwal       22 Sep 2020

Dear Sir,
You can issue invoices without registration only when it is Intra-state supply of goods or services AND within limit of 20Lacs. It means for Inter-state supply you have to definitely take registration even billing of Rs. 10.
For more details call at 7667559772, ca.jkagarwal2011@gmail.com

T&C apply


R

Raghu

21 Sep 2020

As a proprietor can I open chain of stores? Or is it limited to only one store?

Replies (3)                          

CA Yash Shah       21 Sep 2020

Hi, there is no restriction as such. Please contact on 7045760379 for any further clarifications

CA Rahul Singhal       21 Sep 2020

yes you can open any number of stores and for further clarification
contact me at
CA Rahul Singhal
9910550324

CA Jaya Agarwal       22 Sep 2020

Dear Sir,
Chain of stores can only be open with same Trade name. If one store is running from different trade name and another is different, then you even can't get GST registration for all trade names.
For more details call at 7667559772, ca.jkagarwal2011@gmail.com

T&C apply