Allowance of Expenses and Input Tax Credit

Sr. No	Nature of Expense	Rate of Tax	Whether registered  supplier will levy tax	Whether Eligible for Input Credit
1	Salary, wages & bonus paid to employee	0%	No	No
2	Electricity bill	0%	No	No
3	Water Charges/ Plain Water	0%	No	No
4	Bank Interest	0%	No	No
5	Professional Tax	0%	No	No
6	BMC Tax	0%	No	No
7	Building / Property Tax	0%	No	No
8	Rent Deposits	0%	No	No
9	Other Deposits	0%	No	No
10	Petrol / Diesel/ CNG/Kerosene Expenses (Motor Spirit)	0%	No	No
11	Liquor Expenses	0%	No	No
12	Registration Fees (ROF / ROC / RTO etc)	0%	No	No
13	Bad Debt	0%	No	No
14	Donation	0%	No	No
15	Labour  Welfare Contribution to Government	0%	No	No
16	Fine & Penalties	0%	No	No
17	Conveyance Expense - Non AC Taxi, Auto, Bus, Train	0%	No	No
18	Loading & Unloading in relation agricultural produce/ Hamali	0%	No	No
19	Rent Paid for residential use	0%	No	No
20	Godown Rent for agricultural produce	0%	No	No
21	Newspaper & magazines	0%	No	No
22	Remuneration to Director & partners	0%	No	No
23	Conveyance Expense - Radio Taxi like OLA & UBER or other AC vehicle	5%	Yes	No
24	Payment to Goods Transport Agency	5%	No	No
25	Travelling in Train by AC or First class	5%	Yes	No
26	Job Work / Labour Charges for textile yarn & textile fabric	5%	Yes	Yes
27	Job Work / Labour Charges for diamond , jewellery & precious metal	5%	Yes	Yes
28	Job Work / Labour Charges for printing of books, journals & periodicals	5%	Yes	Yes
29	Food & Beverages Expense (Non AC restaurant)	12%	Yes	No
30	Room Rent in a hotel, lodge  (Rs.1000 to 2500 per room per day	12%	Yes	Yes
31	Fuel (Furnace Oil/LPG)	18%	Yes	Yes
32	Sales Promotion/Business Promotion	18%	Yes	Yes
33	Food & Beverages Expense (AC restaurant)	18%	Yes	No
34	Mineral water	18%	Yes	Yes
35	Truck/ Tempo Hire Charges	18%	Yes	Yes
36	Club & Membership fees	18%	Yes	No
37	Advertisement Charges / Hoarding / Magazine / News Papers / Media	18%	Yes	Yes
38	AMC Charges	18%	Yes	Yes
39	Bank Charges - Service charges recovered	18%	Yes	Yes
40	Broker Fee & Charges	18%	Yes	Yes
41	Cancellation Charges	18%	Yes	Yes
42	Extended Warranty	18%	Yes	Yes
43	House Keeping Charges	18%	Yes	Yes
44	Insurance paid on goods & vehicle	18%	Yes	Yes
45	Health Insurance	18%	Yes	No
46	Payment to advocate	18%	No	Yes
47	Loading & Unloading - others/ Hamali	18%	Yes	Yes
48	Training Expense	18%	Yes	Yes
49	Payment to Post office for Speed post & parcel post	18%	No	Yes
50	Postage and Courier Charges	18%	Yes	Yes
51	Printing & Stationery (Flex Printing, Broad Printing, Notice Printing)	18%	Yes	Yes
52	Recruitment Expenses	18%	Yes	Yes
53	Commission Paid	18%	Yes	Yes
54	Rent Paid for commercial use of premises	18%	Yes	Yes
55	Godown Rent for commercial purpose	18%	Yes	Yes
56	Repair and Maintenance - Building /  Electrical /  P& M /  Others	18%	Yes	Refer Note 1
57	Room Rent in a hotel, lodge  (Rs.2500 to 7500 per room per day	18%	Yes	Yes
58	Payment for Sponsorship Services	18%	Yes	No
59	Security Charges	18%	Yes	Yes
60	Telephone, Mobile & internet Charges	18%	Yes	Refer Note 2
61	Sundry Expenses	18%	Yes	Yes
62	Job Work / Labour Charges for garment processing	18%	Yes	Yes
63	Job Work / Labour Charges (Other)	18%	Yes	Yes
64	Sitting Fees, Commission or any other payment made to director by company	18%	Yes	Yes
65	Audit Fees, Account Writing , Professional Fees (other than Advocate)	18%	Yes	Yes
66	Research & Development Expenses	18%	Yes	Yes
67	Food & Beverages Expense (AC restaurant)	28%	Yes	No
68	Wall Paint	28%	Yes	No
69	Room Rent in a hotel, lodge Above Rs.7500/-	28%	Yes	Yes
70	Travelling Expenses International	28%	Yes	No
71	Amusement Park/ Theatre Ticket	28%	Yes	Yes
72	Cold drink	40%	Yes	No
73	Repairs & maintenance Charges if it has not resulted into immovable property	18% / 28%	Yes	Yes
74	Electrical Fittings	18% / 28%	Yes	No
75	Staff Uniform Expenses	5% / 12%	Yes	Yes
76	Packing material & Packing Charges	5%/ 12% 18%	Yes	Yes
77	Plant & Machinery	Actual Rate	Yes	Refer Note 3
78	Furniture & Fixture	Actual Rate	Yes	Refer Note 3
79	Motor Car	Actual Rate	Yes	No
80	Building	Actual Rate	Yes	No
81	Office Equipment including Computer, Software & Hardware	Actual Rate	Yes	Refer Note 3
82	Free Gift given to staff (Exempt upto Rs.50000/- per staff p.a)	Applicable Rate	Yes	No
83	Free Gift given to staff (Above Rs.50000/- per staff p.a)	Applicable Rate	Yes	Yes
84	Diwali/ New year Gift purchased & debited to P & L	Applicable Rate	Yes	Yes

Notes:

1)  If repair  & maintenance expenses resulted into immovable property then input credit is not available

2)  If Telephone, Mobile & Internet bill is in the name of the company and address and place of business is mentioned then only one should claim the input credit

3)  Input credit is available fully. However if it is sold/disposed off/ scrapped/ thrown away within 5 years, then input credit @ 5% per quarter is available for the used period and balance is tobe reversed for not used fully at the time of date of sale.

4)  Input credit is available only if goods & services are used for business. If good or services are used for personal purpose then input credit is not available. If goods & services are used partially for personal use and partially for business use then input credit is available partly in                       proportion to business use.

5)  Input credit is not available if outward supply of goods or services is exempt from payment of tax.

6)  As per Notification No 8/2017 dated 28/06/17, it is provided that if the aggregate value of goods or services or both debited to Trading A/c or expenses debited to Profit & Loss A/c or purchase of any asset obtained from unregistered suppliers is less than Rs.5000/- in a day, then tax is not    required to be paid for such inward supplies by the recipient for that particular day.

7)  Details of all purchase of goods or services debited to Trading A/c or purchase of any fixed asset are required to be submitted in GST return whether purchased from registered person or                                            unregistered person or from composition dealer.

8)  However, if any expense items are purchased from unregistered supplier & escape the payment of tax in view of Notification No.8/2017 dated 28/06/17 then same are not required to be                                                      submitted in GST return.  

HOW TO ADD MISSED BILLS IN GSTR 1

GSTR1 FOR JULY 17 CAN FILE FROM NOV.1ST

GSTR-2 AND 2A

GST- Q AND Answers

How to correct errors in GST registration? 
Process 
You must submit FORM GST REG-14 along with documents. The GST officer will verify and approve within 15 days in FORM GST REG-15. The change will take effect from the date of occurrence of the event. 

For example, ABC is a partnership firm of 3 partners. D joins as a partner on September, 1 2017. The firm files FORM GST REG-14 along with documents on September, 5. The officer will approve within 15 days, which is by September, 20. The change will be in effect from September,1, which is the day D joined. 

If the officer is not satisfied with the documents then he can serve a show cause notice in FORM GST REG-03 as to why the application should not be rejected. The applicant must reply in FORM GST REG-04 within 7 days. If the officer is not satisfied with the reply, he can reject the application and pass an order in FORM GST REG -05. If the proper officer does not to take any more action then it is assumed to be changed. 

Changes in the following will not mean cancellation of registration 
1. Name of business 
2. Address of the principal place of business 
3. An additional place of business 
4. Addition, deletion or retirement of partners or directors, Managing Committee, CEO i.e., people who are responsible for day to day affairs of the business 

Any change in points 1 & 4 done in one state will be reflected across all the states. 

Change in PAN 
If there is any mistake in PAN, the applicant will have no other choice except to file for a fresh registration in FORM GST REG-01. This is because GSTIN number is based on the PAN. 

Change in mobile number or e-mail address of the authorised signatory Change will be done only after online verification through the Common Portal after submitting application in FORM GST REG-14. 

Any other change apart from above will be amended immediately on submitting the FORM GST REG- 14 on the Common Portal. No verification by a GST officer is necessary. 

GST- Q AND Answers

Q.I have purchase branch in erode, tamilnadu and sales branch(h.o) in kolkata.how does the goods to be sent to kolkatta, and also whether I have to treat as sales or stock transfer

A.Sales office and purchase office will be in same PAN? If yes, it will be considered as branch transfer and you have to charge GST while transferring goods to interstate branch located in kolkata. Valuation will be open market price of the product. Please refer valuation rule issued by department for valuation of Stock transfer. Extract of Valuation rules issued by department. Value of supply of goods or services or both between distinct or related persons, other than through an agent The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent, shall,- (a) be the open market value of such supply; (b) if open market value is not available, be the value of supply of goods or services of like kind and quality; (c) if value is not determinable under clause (a) or (b), be the value as determined by application of rule 4 or rule 5, in that order: Provided that where goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of goods or services. 

Q.If my 1 branch with same registration number of GST does the stock transfer to my branch which same registration within state which is located within 2 to 5 kms. Then what should I generate? Like e way bill, invoice, only delivery challan, or whole documents?  Before 1st July as every stock transfer amount will be more than 50 thousands for my Ltd Company in Gujarat.

A.Please refer the rule given in this regard. There is a clear provision regarding your query so please go thru it and still you have doubt, write us. Transportation of goods without issue of invoice: The consigner may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of goods for transportation, containing following details: (i) date and number of the delivery challan, (ii) name, address and GSTIN of the consigner, if registered, (iii) name, address and GSTIN or UIN of the consignee, if registered, (iv) HSN code and description of goods, (v) quantity (provisional, where the exact quantity being supplied is not known), (vi) taxable value, (vii) tax rate and tax amount – central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee, (viii) place of supply, in case of inter-State movement, and (ix) signature. (2) The delivery challan shall be prepared in triplicate, in case of supply of goods, in the following manner :– (a) the original copy being marked as ORIGINAL FOR CONSIGNEE; (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and (c) the triplicate copy being marked as TRIPLICATE FOR CONSIGNER. (3) Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL].

Q. If I transfer my stock from 1 to another branch with both same registration number of GST and within same state, I will be applicable for GST even if the brach distance is not more than 5 kms? or stock transfer can do wthout any tax ? then what will the documents needed for without GST transfer to file in future?

A.Stock transfer will be without GST if it is being transfer in same GSTIN.

Q.If an exporter wants to export his goods, during carrying of exported goods to dock yard or airport situated in same state whether way bill has to be generated since GST is not applicable for exported goods, hoping for ur valuable reply.

A. Yes for the movement of goods you need to fill e way bill on portal than only movement is allowed. It is immaterial that the material is going to be exported. e way bill is just to facilitate the movement and to track each and every movement. Registered person and goods value is more than 50000 than you need to file way bill and it is required before starting movement and does not make any difference if movement is within state or outside state.

Q.I am registered person and goods supply to individual who is not registered. So who and how e way bill generate?

A.registered person will file way bill. That means you have to file it before sending.

Q.E Way bill is necessary also in case of intra state branches.

A.Yes e way bill will be generated for intra state branch transfer because as per e way rule any moment even for reason other than supply is also required e way bill movement. Agar tax free item supply 50000 ke upar karte hai to bhi E-way bill online bharana padega.

Q.If I charge some freight or part freight on GST Tax Invoice then receiver take ITC on that, because as I hear No-ITC on GTA but in previous our receiver take ITC on service tax.

A.Input of GTA service is allowed to the person paying tax on reverse charge. Credit is not allowed to transporter.

Q. What is cess? kiya ye SGST OR CGST TO ADD KARKE LIYA GAYA HAI TAXABLE BLUE SE AUTO CALCULATE HOGA.

A.Cess is not on all items. There are some specific goods on which cess is to be paid. This is other than CGST and SGST, such as petroleum, tobacco, liquor goods.

Q. Mera printing ka business hi mere confusion ye hi ki me jab paper leta hu to 12% GST pay karta hu fir me job work karta hu to 5-18% GST deta hu but jab mai sale karta hu to mera item printed book nil category me aati hi to jo maine GST deya hi wo mujhy return milega ya os GST ko mujhy apni cost may add karna hoga

A.Refund mil jayega.

Q.Mera dukan Hai jaha se Mei supply karta hu sath hi sath migrated to GST from Vat. now what to do with closing stocks as on 30.07.2017

A. Sell those with GST and at month end take ITC of vat paid.

Q.Main bihar mein business karta hun digital magazine ka. UP & Jharkhand mein bhi ek ek project ke liye kam karta hun. Total annual turn over 3 lakh hai. Ab mujhe GST lena Hoga, agar lena hoga to sabhi return fill Karna hoga. 

A. Naye amendment se apko registration ko jaruri nahi.

Q.How we will return file gstr1 while our products are tax free and we supply these to out of state and within state.

A. If you are not supplying any taxable item then you are not required to registration and not to file return. If you have registration then give tax rate wise + state wise details if supplying only to End user, otherwise invoice wise details.

Q.In B2B Scheme how come we will know if they have taken compostion scheme or not?

A.You need to ask them

Q.Can you please tell me what is csc?

A.Common service center.

Q.What about travels business in GST give details.

A.Contract work of companies’ transportation of personnel manpower, agar 20 lakh se upar receipt h to you have to register yourself.

Q.GST me composition scheme ke leye kon sa form or kab tak yani iske last date kya he composition scheme me apply ke.

A. Last date koi nahi h ... bas registration karte waqt ek option aayega composition ka vo select kar lena

Q.Jise koi Party 0 % ka saman sale purchase karte he or inka turn over 20 lakh se jayada he to kya ishe bhi regest lena padega or yeh sirf ekh he state me yani jese state me party reg he

A. Nahi agar aap sirf 0% vaala product sale kar rahe to koi registartion nahi lena.

Q3. I am an existing taxpayer and wish to enroll in GST. For enrolment under GST, I want to create a new username and password. However, I have not received the one-timepassword (OTP) on my registered mobile number. The problem continued even after I clicked the "RESEND OTP" button on the GST Common Portal.

A: Your mobile number may be registered for Do Not Disturb (DND) services, due to which the OTP cannot not be delivered. You are advised to de-activate DND services from your mobile network. Once de-registered, you must redo the entire process of registration on the GST Common Portal. If the problem persists, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation.

Q4. I am an existing taxpayer and wish to enroll in GST. For enrolment under GST, I wanted to create a new username and password. However, I have not received the onetime- password (OTP) on my registered email. The problem continued even after I clicked the "RESEND OTP" button on the GST Common Portal.

A: The one-time-password (OTP) may have been delivered to the spam folder of your registered email ID. Please check the spam folder of your email account. If you find the OTP in the spam folder, please change the spam-filter policy settings of your email account to allow legitimate emails sent by GSTN. This will ensure that a future OTP sent by GSTN is not marked or filtered as spam. If you do not find the OTP in the spam folder, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 01244688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.

Q5. I am an existing taxpayer and wish to enroll in GST. While submitting GST FORM-20 with DSC, I received the error message: "DSC is not registered with authorised signatory".

A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.

Q6. I am an existing taxpayer and wish to enroll in GST. I have submitted the Enrolment Application i.e., GST FORM-20 on the GST Common Portal. However, I have not received the Application Reference Number (ARN) through email with all details.

A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.

Q7. I am an existing taxpayer and wish to enroll in GST. On submitting the Enrolment Application i.e., GST FORM-20 on the GST Common Portal, I received the message: “Submitted & Pending for verification".

A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.

Q8. I am an existing taxpayer and wish to enroll in GST. On the GST Common Portal, while filing GST FORM-20, the desired RANGE CODE is not appearing in the drop-down list.

A: Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.