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Industry Guide:

Guide on Approved Trader Scheme

 
Please click here to download complete guide

 

FREQUENTLY ASKED QUESTION

Supply of goods to the local market by ATS approved person 

1. If I supply raw materials or finished goods to another ATS approved person, do I still have to account for GST output tax? 

Yes, a supply made to another ATS approved person, irrespective whether the buyer is an operator in a free industrial zone, IPC or RDC operator is a taxable supply. You have to account for GST output tax chargeable on the supply by issuing a tax invoice. 

2. I am an operator in a free industrial zone under the ATS and if I loan some raw materials to another operator in the free industrial zone for his urgent use, do I have to account for GST output tax? 

Yes, because you are treated as making a supply of goods since the raw materials which the other operator in a free industrial zone replaces you later on would not be the same as the raw materials you loan to him. As such, it is a taxable supply

3. If I am a member under group registration, do I need to apply for separate ATS approval for each constituent member?

Yes, each constituent member has to apply for ATS separately and it must fulfill the required conditions.

4. If I supply goods to a group member, do I have to account for GST output tax on the supplies?

No, supply made between members registered as a group under the GST is disregarded. However, goods imported under ATS are not allowed to be supplied to any member of the group unless the ATS approved person has IPC or RDC status. For further details, please refer Guide on Registration.


Responsibilities of an ATS approved person

5. When I ceased to be a GST registered person or as an ATS approved person, do I have to account for output tax on capital assets/stocks on hand? 

In both the above instances all goods imported, including capital assets and stocks, on hand at the effective date of cessation are deemed to be taxable supplies and you must account for output tax on the goods. 

6. Can I transfer my ATS status to another person if I decide to dispose of my business to him?

Approval granted under the ATS is not transferable in any manner. The buyer must apply for his own ATS status if he can fulfill all the conditions stipulated under the ATS.

7. What is the duration of an ATS approval and when should I renew it? 

Approval for ATS status is on a two-yearly basis or for a shorter period, as the case may be, and any application for renewal must be made within six months before the last day of each approval period. 

8. What would happen to goods on hand if my ATS status is revoked?

If you are still registered for GST, normal rule would apply to your goods on hand, i.e. account for output tax if supply takes place.

9. As an approved person under ATS, do I have to submit any report to GST office?

Yes, you have to prepare monthly report known as Lampiran B – 0 P.T. GST Bil 2B (refer to Appendix 2) and submit it to the GST office (controlling station) within 15 days after the end of your taxable period including varied taxable period. If you are under a category of “any person whose annual turnover is more than 25 million and at least 80% supplies made are zero rated”, there is another report to be prepared known as Lampiran A1 (refer to Appendix 3). This report is not required to be submitted but must be prepared for audit by any GST officer, at any time as requested. The template of Lampiran B – 0 P.T. GST Bil 2B and Lampiran A1 can be downloaded from GST portal. 
 
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