Author: abhishek

Yes, the basic exemption limit of Rs. 20 lakhs (Rs.10 lakhs in the case of special category States) is applicable to the tiny and micro segment even in mining. However, a person engaged in making taxable supply and
having aggregate annual turnover (more than Rs.20 lakhs in any State other than the special category States) would be liable to obtain registration under GST. The return has to be filed on monthly basis by regular taxable persons
and on quarterly basis by the taxable persons registered under the composition scheme.

(FAQ 10; MINING)

Yes, Return filing and compliance is simpler under the composition scheme. The registered person has to file only one return on a quarterly basis in Form GSTR-4.

(FAQ 9: MINING)

As per section 10(3) of the CGST Act, 2017, the option availed of by the small mine owner/lease holder shall lapse with effect from the day on which his
aggregate turnover during a financial year exceeds Rs. 75 Lakhs. For details regarding other conditions, section 10 of the CGST Act, 2017 and the rules framed there under may be referred to.

(FAQ 8: MINING)

GST on reverse charge mechanism is payable under section 9(4) of the CGST Act, 2017 only in case of purchases from unregistered suppliers. As the mine owner who is paying tax under composition scheme is registered, the recipients need not pay GST on reverse charge mechanism.

(FAQ 7: MINING)

No,the buyer cannot avail of the credit of tax paid by the supplier who is under the composition scheme as the person paying tax under composition scheme cannot issue a tax invoice and collect taxes on his supplies.

(FAQ 6: MINING)

At present, the IGST rate is the sum of CGST and SGST/ UTGST rate. These rates have been notified and are available in public domain.

(FAQ 5: MINING)

No. If a supplier chooses to avail of composition
scheme, he shall not undertake inter-State supply.

(FAQ 4: MINING)

Yes. GST has to be paid separately under CGST and SGST/UTGST by generating a single challan through the common portal under a single return.

(FAQ 3: MINING)

In a case where the process amounts to manufacture, the rate of tax will be 1% (CGST) and 1% (SGST/UTGST). In any other case, the rate will be ½ (CGST) and ½% (SGST/UTGST).

(FAQ 2: MINING)

As per Sec. 10(1) of the CGST Act, 2017, a registered person whose aggregate turnover in the preceding FY did not exceed Rs.75 lakhs, would be eligible for paying GST under the composition scheme.

(FAQ 1: MINING)