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GST: FAQ's

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Frequently Asked Questions

GST is an Indirect Tax which will eliminate various taxes like VAT tax, Excise, Service tax, Octroi, etc.

GST is likely to be implemented from 1st July 2017.

Yes, Income Tax is a Direct Tax and GST is Indirect Tax, hence Income Tax will be required to be paid even after GST.

GST rate on gold jewellery is 3%. However jewellers have to pay 5% on making charges on making jewellery.

Under VAT Act, VAT is paid on purchase of goods and collected on sale of goods. A business entity is required to pay VAT on difference between VAT collected & VAT paid. But under GST, Octroi, Service Tax, Excise, etc. will also be eliminated and will be subsumed with GST. Hence, under GST law, tax is to be paid on sale of goods minus tax paid on purchase of goods.

Yes, please take help of your CA & Tax Consultant to enroll under GST immediately.

Turnover limit for registration under GST is Rs.20 Lacs. However, for North East States this limit is Rs.10 Lacs.

Yes, if his income from making his jewellery exceeds from Rs.20 Lacs per annum than he must obtain GST number.

If a 'Karigar' is also registered under GST than he will recover GST of 5% on making charges from jeweler. But if 'Karigar' is not registered than jewelers will have to pay tax on making charges paid to 'Karigar'.

To run a Manufacturing Unit one is already paying GST for power bills, telephone bills, purchase of goods, rent, consultancy fees, etc. Therefore there is no need to pay GST.

18 % GST will be applied on repairing charges only. However if some gold is added while repairing goods then 3% GST is used to be paid on additional gold used for repaire.

Since the customer is exchanging one product to the other, GST will be levied on full value of the product. If the customer is Unregistered, than jeweler will also have to pay GST on bullion received from customer apart from payment of GST on full value of product exchanged.

Since original product is getting converted to different product, GST will be levied on full value of mangalsutra. However, if it is termed as repairs only than GST will be payable on additional gold value and labour charges.

If the international standards are to be adopted making charges and wastage must be written separately while rising invoice to the customer. However, government has stated that jewellery will be taxed at 3% and hence there is no need to write making charges separately. However, we are seeking clarity on these issue from government.

Yes, it's necessary to prepare Voucher while issuing Goods to Karigar.

Yes, it's necessary to prepare Voucher.

GST will be levied on all goods which are sold, but he cannot take goods to other states where you don’t have office and where you have not applied for casual taxable number in that state.

While transferring goods from one office to another which is in different state GST will be levied. However, input credit for be same will be available.

GST is always levied on supply but when the goods are taken to the exhibition there is no supply hence, GST shouldn’t be levied but clarifications  from government are required. Current law says that GST will be applicable for movement of goods from one state to another for trade fairs and exhibition.

The violation of GST is subject to penalties and precaution hence it is important that GST is followed rigorously.

Yes, a businessman can send goods on approval for a six months period and tax is required to be paid only when goods are approved by the customer.

Yes, stock is to be declared, within 90 days.

Yes, he must get himself registered because if he is not registered tax is to be paid by the jeweler for all job work done by job worker.

Yes, but old stock should not be more than one year old. Also the old stock must be sold within 6 months to avail VAT credit of old stock.

In our opinion if excise paid is 1%, than excise credit will not be available.

When you purchase goods, or make jewellery or spend any expenditure through unregistered dealer, a registered jeweler is required to pay GST on reverse mechanism.

Yes, E-way bill must be prepared.

Yes, E-way bill must be prepared.

No, there is not Reverse charge applicable in composition scheme.

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