Category: Sector Wise GST

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Assuming, I apply for voluntary registration and obtain GST registration:Will I have to issue tax invoice for all sales that I make i.e. branded or un-branded after getting registered

  1. Rice put up in a unit container and bearing a registered brand name is taxable @5% and tax invoice has to be issued for supply of taxable goods [ Section 31(1) ofthe CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017].
  2. For sale of goods exempt from tax i.e. unbranded rice, a bill of supply has to be issued [ Section31(3) (c) of the CGST Act, 2017 read with Rule 49 of the CGST Rules, 2017].

(FAQ 9(v)(d); FOOD PROCESSING)

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Assuming, I apply for voluntary registration and obtain GST registration:Will I get ITC on CGST & SGST paid on packing materials, office stationery, computer and accounting software purchased and lying with me as stock as business assets on the date preceding the date from which I have become liable to pay tax under GST

  1.  A person who takes voluntary registration is entitled to take credit
    of input tax in respect of inputs held in stock and inputs contained in semi–
    finished or finished goods held in stock on the day immediately preceding the date of grant of registration.
  2.  Two important points being that the goods in stock must qualify as “input”
    and that the tax paid at the time of its purchase must qualify as “input tax”
    under GST.
  3.  Any goods which have been capitalised in the books of account will not be
    treated as an input. Hence credit on computers will not be available if the
    value of the same has been capitalized in the books of accounts. Further, in
    terms of section 18(1)(b) of the CGST Act, 2017, taxes paid on accounting
    software which were acquired before registration will not be available as
    credit since credit is not available in respect of services in such cases. Other
    than that, credit shall be available on CGST/SGST paid on packing materials,
    etc. subject to conditions andrestrictions spelt out in sections 16 to
    18 of CGST Act, 2017.

(FAQ 9 (v) (b) : FOOD PROCESSING)

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Assuming, I apply for voluntary registration and obtain GST registration: Will I get ITC on the IGST paid on branded rice lying in stock on the date prior to the date of my liability

Yes, a person who takes voluntary registration is entitled to take credit
of input tax in respect of inputs held in stock on the day immediately preceding the date of grant of registration. In this connection, section 18(1)(b) read with section 25(3) of the CGST Act, 2017 refers.

(FAQ 9(v)(a) : FOOD PROCESSING)

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: I am a whole seller of rice dealing in both branded and un-branded rice. I purchase them locally (i.e. from within the State) and also from outside the State (inter-State purchase). In the last financial year my turnover was Rs 5.5 Crore. Today, I am not registered under VAT.(iii) 90% of my turnover will of un-branded rice, while 10% only will of branded one. Can I sell both of them in one invoice?

As per Invoice Rules, a registered person supplying taxable goods is required to issue a tax invoice and in case of exempted goods, he is required to issue a bill of supply. As all the contents of bill of supply are included in the tax invoice, a separate bill of supply need not be issued in case of the exempt component. Thus, both branded and unbranded rice can be included in one invoice.

(FAQ-9 (iii) :Food Processing)