Our client is into the field of transportation and provides time definite logistics services and solutions attaining the highest reliability standards. He has registered office in Kolkata. Majority of his operations is carried out in Chennai. No operations is carried out in Kolkata.He has raised the following queries which have been reverted serially.
Q.1. Do we need to have a record keeping office at Kolkata or virtual office would solve as used to be?
A.1. ABC Distribution Solutions Private Limited presently has its registered office in Kolkata. In case you are having any business operations in Kolkata, then books of accounts and other relevant records should be maintained at Kolkata office. Else it is not mandatory.
Q.2. Do we need to have GST registration at each and every state/POS in the country?
A.2. A supplier has to register in each of such State or Union territory from where he effects supply or in other words carries out business operations and has a place of business.
Now in your case, if you are carrying out any operations in any of the states outside Tamil Nadu and are having fixed establishments there, then you need to take GST registration in all those states.
But if are not having any fixed establishment and are operating only via channel partners ( like in case of outsourcing) , then you do not need to take any registration in any of those states.
If your channel partner raises invoice, then he will charge IGST considering it to be interstate supply. If you are raising invoice to all outside Tamil Nadu channel partners, then you will also be charging IGST on them.
For any supplies, within Tamil Nadu, CGST and SGST will be charged.
Q.3. What documents are needed to be prepared by us for transportation of goods seamlessly across India?
A.3.Every registered person who causes movement of goods of consignment value exceeding Rs.50,000/-:
(i) in relation to a supply; or
(ii) for reasons other than supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of movement, obtain an e-way bill in order to allow seamless transport of goods within India.
Documents and devices to be carried by a person-in-charge of a conveyance:
(1) The person in charge of a conveyance shall carry:
(a) the invoice or bill of supply or delivery challan, as the case may be; and
(b) a copy of the e-way bill or the e-way bill number, either physically or mapped to a Radio
Frequency Identification Device (RFID) embedded on to the conveyance in such manner
asmay be notified by the Commissioner.
(2) A registered person can submit a tax invoice in Form GST INV-1 on the common portal. After which he will get an Invoice Reference Number (IRN). IRN is valid for 30 days from the date of uploading. It can be given for verification by an officer instead of the tax invoice. Note that where a registered person uploads the invoice, information in Part A of Form GST INS-1 is auto populated from GST INV-1.
(3) The commissioner may notify for a class of transporters to get unique RFID. This RFID will be embedded on to the conveyance (mode of transport) and mapped to the e-way bill before the movement of goods.
(4) Notwithstanding anything contained point (b) of rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of conveyance to carry the following documents instead of the e-way bill:
(a) tax invoice or bill of supply or bill of entry; or
(b) a delivery challan, where the goods are transported other than by way of supply
Q.4. What are the rate of taxes for air/road/rail/sea transport modes?
A.4. Schedule of GST rates for services as approved by GST council:
|
Particulars |
GST rate |
||
|
|
||
|
|
||
|
|
||
|
|
||
|
Transport of goods in containers by rail by any person other than Indian Railways
|
12% With Full ITC |
||
|
Services by way of transportation of goods by an aircraftfrom a place outside India upto the customs station of clearance in India.
|
Exempt |
||
|
Services by way of transportation by rail or a vessel from one place in India to another of the following goods - (a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; (b) defence or military equipments; (c) newspaper or magazines registered with the Registrar of Newspapers; (d) railway equipments or materials; (e) agricultural produce; (f) milk, salt and food grain including flours, pulses and rice; and (g) organic manure |
Exempt
|
||
|
Services provided by a goods transport agency, by way of transport in a goods carriage of,- (a) agricultural produce; (b) goods, where gross amount charged for the transportation of goods on a consignment transported in a single carriage does not exceed one thousand five hundred rupees; (c) goods, where gross amount charged for transportation of all such goods for a single consignee does not exceed rupees seven hundred fifty; (d) milk, salt and food grain including flour, pulses and rice; (e) organic manure; (f) newspaper or magazines registered with the Registrar of Newspapers; (g) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap; or (h) defence or military equipment’s; |
Exempt
|
||
|
Services by way of transportation of goods (i) by road except the services of— (A) a goods transportation agency; or (B) a courier agency; (ii) by inland waterways; |
Exempt
|
Q.5. What is the GST rate applicable for courier services?
A.5. Courier service will be charged @ 18%.
Q.6.Shall the procedure of ITC as in service tax continue in GST or are there any modifications? Please confirm.
A.6. There is one thing that completely stands out in this entire GST Tax regime and i.e. – the mechanism of input credit under GST.If you are a manufacturer, supplier, agent, e-commerce operator, aggregator or any of the persons mentioned here, registered under GST, You are eligible to claim INPUT CREDIT for tax paid by you on your PURCHASES.
How to claim input credit under GST –
- You must have a tax invoice(of purchase) or debit note issued by registered dealer
- You should have received the goods/services
- The tax charged on your purchases has been deposited/paid to the government by the supplier in cash or via claiming input credit
- Supplier has filed GST returns.
Input credit is ONLY allowed if your supplier has deposited the tax he collected from you. So every input credit you are claiming shall be matched and validated before you can claim it.
Therefore, to allow you to claim input credit on Purchases all your suppliers must be GST compliant as well.