While addressing queries of stakeholders from various sectors, the Government last day issued Frequently Asked Questions (FAQs) on provisions relating to registration, transition etc under the new indirect tax law.
As per it, a supplier having turnover below Rs. 20 lakhs is liable to take registration while supplying the goods from one State to another under the new Goods and Services Tax (GST) law.
It clarified that a Firm registered under the GST has an option to cancel its registration if it is dealing with exempted goods only. However, it is bound to file returns till de-registration.
To a question whether franchisor Company will have to take registration in each States where outlets are located, it answered in negative and stated that such a Company need not take registration in a States where its franchisee is located.
It also stated that person having excise registration will not get the benefit of input tax credit when they migrated to GST by using the composition scheme. In such a case, their ITC lying in balance would also lapse, it said.
One of the stakeholder asked “if I use my credit card to pay utility bills, I will end up in paying GST twice. One for the service and second time for the credit card bill.?”
To this, it answered that “GST is not leviable on the entire credit card bill. It is charged only on the fee/commission levied by the credit card company.”
Read the full text of the FAQs here.
