Concerns regarding GST continues..

There has been a huge increase in the number of people who are interested in knowing more about GST. And people are overflowing in every training sessions conducted regarding GST across the country.

After the GST has taken into action the taxpayers have been provided with almost 17 information centres by the government. Even though it has provided a lot of information on how GST works it has not clarified all the doubts of small scale business owners from places including Kottayam.

A list of the most raised questions and their answers are given below.

1. Is GST applicable for those taxpayers who use their own vehicles to transfer goods from one place to another?

A. Tax will only be applicable for those goods that are transferred through Goods Transport Agency (GSA) or Courier Services. And the tax should be paid according to consentment notice. If the goods transported have a value less than Rs.750 or the overall contract vehicle’s fee is less than Rs.1500, they will not be required to pay tax.


2. How does GST calculate mixed supply which is also known as combo supply?

A. If a group of items are sold together as a part of discounts or offers, the tax of the costliest item in the group will be applied to all the other items in the group.


3. Is GST applicable for loading and unloading charges?

A. Yes GST is applicable to loading and unloading charges. The only exclusion is for rice products.


4. When does GST affect in the case of advance payments?

A. GST is applicable from the moment the advance has been paid. Tax should be paid according to the schedule of goods and services when the advance payment is received.


5. Is it possible to credit input tax on the usage of vehicles for purposes such as the transportation of employees?

A. It is not possible to credit input tax on the amount including vehicle charges spend for employees. Likewise it is not possible to credit input tax on the vehicle that belongs to the Directors of the Business. Input Tax can only be credited in this manner by Vehicle Dealers and Transportation Service Providers.