Frequently Asked Questions (FAQ)

Answers to most frequently asked questions.

My client is a manufacturer of some food product and he is also supplying the same in his restaurant so under composition scheme he has to pay 5 % as a service provider or as a manufacturer 1%.

If you are supplying the food product in packets to the customers, then it will be considered as manufacture and accordingly, 2% GST rate will apply. However, if supply bhajiya to the customers in your restaurants, then 5% GST shall be applicable.

I am an exporter of service and the service is fully exempt from tax but I am paying GST on input service. Can I claim refund of input tax credit.?

In case of export, tax paid on the input service can be claimed as refund under GST.

What if a person sells his pre-owned car of Rs. 25 lacs to a dealer of second hand cars, will he be covered under casual taxable person and does he needs to deposit the tax?

The sale of car will be treated as supply under GST and accordingly registration is required. If you are not engaged in any other supplies, then you can take registration as a casual taxable person. The registration of casual taxable person will be valid for the period of 90 days only.