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What is the time limit for taking registration under GST Law

Every Person who is liable to be registered under Section 22 or Section 24 shall apply within 30 days from the date on which he becomes liable to registration in such manner and subject to such conditions as may be prescribed. Further, a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business. Furthermore, every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.

(ICAI FAQ PUBLICATIONS 06-09-2017 REGISTRATION: FAQ NO. 3)

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One of the conditions to claim credit is that the receiver is in possession of tax invoice or debit note or any other tax paying documents. What are the tax paying documents?

The tax paying documents have been prescribed under Rule 36 of the CGST Rules.
The ITC shall be availed by a registered person [including the Input Service Distributor (ISD)] on the basis of any of the following documents:

 An invoice issued by supplier of goods or services or both;
 An invoice raised by the recipient in case of inward supplies from unregistered persons or reverse charge mechanism supplies, subject to payment of tax;
 A debit note issued by a supplier of goods or services or both;
 A bill of entry or any similar document prescribed under the Customs Act, 1962 or Rules made there under for the assessment of integrated tax on imports;
 An Input Service Distributor (ISD) Invoice or ISD Credit Note or any other
document issued by an Input Service Distributor for distribution of credit.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.5)

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Whether Input tax credit on Inputs and Capital Goods is allowed in one installment?

  1. Yes. Input tax credit will be available in full with respect to inputs and capital goods, subject to fulfillment of the prescribed conditions under Section 16(2) of the CGST Act.
  2. Even in the case of supply of goods in lots/ installments, the credit would be available in full on the receipt of the last lot/ installment.

The existing concept of partial credit on purchase of capital goods under the CENVAT Credit Rules, 2004 (i.e. 50% in the year of receipt and 50% in subsequent years) has been done away with.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.4)

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What are the conditions to be fulfilled for entitlement of input tax credit?

A registered person will be entitled to claim input tax credit only upon fulfillment of the following conditions:
 He is in possession of tax invoice/ debit note issued by a registered supplier or any other tax paying documents;
 He has received the goods and /or services or both;
 The tax charged on such supply is paid to the Government by the supplier (by way of cash or by utilizing input tax credit)
 He has furnished a valid return.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.3)

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What is Input Tax credit?

  1. Input tax credit means the credit of central tax, state/ union territory tax and integrated tax available to a registered person on the inward supply of goods or services or both, made to him excluding the tax paid on supplies liable to composite tax.
  2. It further includes the integrated tax applicable on import of goods or services and the tax payable under reverse charge mechanism.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.2)

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Will the Customs duty paid by Customs House Agent on behalf of the client also be required to be included in the transaction value

Under the Service tax law, the aforementioned expenses were treated as
reimbursements as ‘pure agent’ and are hence was not liable to service tax. Similar treatment exists in case of pure agents under the GST law as well. In terms of Rule 33 of the CGST Rules, the expenditure/ costs incurred by the supplier acting as a pure agent of the recipient, on fulfilment of prescribed conditions, be excluded from the value of supply.

(ICAI FAQ PUBLICATIONS 06-09-2017 VALUE OF TAXABLE SUPPLY: FAQ NO. 60)

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Whether capital goods can be considered as inputs?

No, ‘Inputs’ are defined under Section 2(59) of the CGST Act to mean any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business.
‘Capital goods’ are defined under Section 2(19) of the CGST Act to mean goods, the value of which is capitalized in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business.

(ICAI FAQ PUBLICATION 06-09-2017 INPUT TAX CREDIT: FAQ NO.1)