What is time limit under GST for bringing back goods sent to a job worker?

An individual availing of the benefit of the composition scheme under the goods and services tax (GST) regime crosses the turnover of Rs 1.5 crore during the year (say in October 2017). Will the person be allowed to pay GST under that scheme for the rest of the financial year? 

According to GST law, the option of discharging the GST liability under the composition scheme by a registered person lapses the day his aggregate turnover during a financial year exceeds the prescribed limit. 

Therefore, you are not eligible to discharge GST under the composition scheme for the rest of the year. 

I am a manufacturer of motor parts.  Under the pre-GST regime, goods sent to a job worker should be received back within 180 days of being sent. What is the time limit prescribed under the GST regime for bringing back the goods sent to a job worker? 

Under the GST regime, goods sent to a job worker should be treated as a supply, as supply includes all forms of supply such as sale, transfer, etc. GST law contains a provision which allows sending of inputs and/or capital goods, without payment of tax for a job work. 

However, the inputs/capital goods sent to a job worker should either be brought back after completion of the work or otherwise within one year/three years of their being sent out or supply such inputs/capital goods after completion of a job work or otherwise within one year/three-years of their being sent out, from the place of business of a job worker on payment of tax within India or with or without payment of tax for export. 

Amit Bhagat

A registered taxable person has unutilised input tax credit amounting to Rs 75,000 according to his last value-added tax (VAT) return before July 1. Under the GST regime, he has opted for the composition scheme for discharging of GST liabilities. Can he carry forward the unutilised input tax credit under the GST regime? 

Transitional provisions under the GST law specifically restrict a registered person who has opted for the composition scheme to carry forward in his electronic credit ledger the amount of input tax credit unutilised in the return relating to the period ending with the day immediately preceding the appointed day. 

Accordingly, he will not be eligible to carry forward the unutilised input tax credit amounting to Rs 75,000 under the GST regime. 

Would GST be levied on the interest charged by a supplier on account of delay in payment? 

Under GST law, a specific provision mandates a supplier of goods/services to include any interest charged on delay in payment of consideration by the customer in the taxable value of the supplies. Therefore, any interest charged by the supplier due to delay in payment of consideration should be taxable under GST. 

Up to what extent can we round-off taxable amount and tax value under the GST regime? 

GST law provides for rounding off the amount of tax, interest, penalty or fine to the nearest rupee. However, GST law does not prescribe mandatory rounding-off of taxable value. 

The writer is tax partner, PwC India. Aditya Khanna, associate director, PwC contributed to this column. The views expressed are experts’ own. Send your queries to yourmoney@bsmail.in