1. TAX INVOICES BY THE REGISTERED SUPPLIER OF TAXABLE SERVICES: Tax Invoice shall contain the following minimum particulars: (a) Name, address and Goods and Services Tax Identification Number of the supplier;
GOODS AND SERVICES TAX (GST)
👉 Brief Information
✍ It replaces Central Excise Duty/ Additional Duties of Excise/ Excise Duty under MTPA/ CVD/ SAD/ Service Tax/ Surcharge & Cesses/ VAT/ CST/ Purchase Tax/ Entertainment Tax/ Luxury Tax/ Entry Tax/ Taxes on Lottery.
✍ GST Council is the apex body created by Parliament for governance of this Act. It includes Finance Secretaries of Central as well as various State Governments.
✍ GST Rates- 0%, 5%, 12%, 18% & 28%.
✍ Old Sales Tax/ Manufacturing Tax/ Service Tax Registration Numbers will go and new PAN based Registration Number for GST is essential. Structure of this number is as under:
Out of which first two digits are state code (in which Registration is taken)- ’07’ is for Delhi,
Next 10 digits (AAAAA0000A) are PAN number of the assessee
and last 3 digits are serial number.
✍ Incidence of GST is on following:
- Supply of Goods or Services.
Agreed to Supply Goods or Services for Consideration (either in cash or in kind).
Destination based Tax will be charged (If source & destination are in same state, then it is Intrastate Transaction, if source & destination are in different states, then it is Interstate Transaction).
Branch Transfer/ Stock Transfer will also attract GST.
Now concept of Statutory Forms such as ‘C’ form/ ‘F’ form become outdated.
✍ GST Registration is mandatory, if Annual Turnover is Rs. 20 Lacs or more. However if you are engaged in Interstate transactions, Limit of Rs. 20 Lacs will not be applicable and you have to take Registration in all cases.
✍ Three types of GST are there:
Central Goods & Service Tax (CGST)
State Goods & Service Tax (SGST)
Integrated Goods & Service Tax (IGST)
✍ Rates under GST:
Rates of CGST & SGST shall be equal and will be 50% of the rates stipulated for those specific Goods or specific Services. e.g. if the goods under transaction attract 18%, then CGST for them is 9% and SGST for them is 9%.
In case of Local Invoice or Intrastate Invoice, CGST and SGST both need to be charged separately and to be mentioned in the Return accordingly.
Rates of IGST shall be equal to the sum of rate under CGST and rate under SGST. Thus in above example, rate under IGST is 18% (9 + 9).
In case of Central Invoice or Interstate Invoice, IGST need to be charged and to be mentioned in the Return accordingly.
Input Tax Credit shall be available for all these three taxes viz. CGST, SGST & IGST except in some cases.
Earlier, in spite of ‘C’ or ‘H’ or ‘F’ forms, 2% tax was a cost to the assessee. now since these forms are done away with, this 2% cost is avoided, since full set-off or ITC of IGST on all Interstate Transactions is allowed now.
GST will also be chargeable on Free Items or Samples given. Thus GST needs to be paid on all items being delivered to the customer.
✍ Composition Scheme:
It is available for all assessees dealing in goods having Annual Turnover <= Rs. 75 Lacs.
Under this scheme, 2% tax is applicable for Manufacturing Organisations, 5% tax is applicable for Restaurants/ Dhabas and 1% tax is applicable for all others.
No Set-off or Input Tax Credit shall be available under this scheme.
This Scheme is Optional.
Assessee has to apply for this and then GST Official’s permission is required to opt for this.
If this scheme is availed, GST cannot be charged in the Invoices raised by the Assessee.
If this scheme availed in one year and for next year you intend to opt out of this scheme, you can apply to GST officials and take permission for the same i.e. either to Opt In or Opt Out of the scheme.
Service Providers shall not be eligible for the Composition Scheme. ✍ Immovable Property is not Taxable under GST. Thus, if the flat is booked before Completion Certificate, it is Taxable under GST, whereas if the flat is purchased after Completion Certificate (Ready Possession Flats), it will not be Taxable under GST.
✍ GST is also applicable on Advance from Customers, as and when it is received from the customer, before raising invoice for the same. It needs to be declared in the Output GST Return (GSTR-1).
✍ URD Purchases (Purchases from Unregistered Dealers/ Suppliers):
If the Assessee Purchased from Unregistered Dealers, Assessee has to ACTUALLY Pay GST on the same Purchases under Reverse Charge. However, Assessee can take set-off or Input Tax Credit of the same.
✍ No Revision of Return is allowed under GST.
✍ Input Tax Credit:
- Assessee has to be in Possession of Tax Invoice or Debit Note or Credit Note and Goods or Services must have been received by the Recipient.
Payment has to be made to the Supplier within 180 days. If the payment is not made to the supplier within this period, the ITC has to be reversed by the Assessee. It can later be availed, as and when actual payment of this is made to the Supplier.
ITC of GST paid under Reverse Charge (GST paid on Unregistered Purchase or on Other Specified Services under Reverse Charge) can be availed.
✍ GST Rating:
- There will be GST Compliance Rating (just like CIBIL Credit Rating) in respect of Assessee, in consideration of timely filing of Returns, timely GST Payments and other discipline followed by the Assessee.
This can be viewed by the Assessee and also by others.
Thus while selecting the Supplier, his GST Compliance Rating can be viewed beforehand.
It will also be viewed by Bankers, Financial Institutions while lending money to the Assessee.
✍ Input Tax Credit under GST shall be used in the following manner and in the same sequence:
ITC of CGST shall be used
- For payment of CGST
For payment of IGST
ITC of SGST shall be used
- For payment of SGST
For payment of IGST
ITC of IGST shall be used
- For payment of IGST
For payment of CGST
For payment of SGST
✍ Return Filing Due Dates:
- 10th of Next Month- Output GST i.e. Sales Return (including Advances received from Recipient) (GSTR-1).
15th of Next Month- Input GST i.e. Purchase Return (GSTR-2). These entries have to match with the entries made by your suppliers in their GSTR-1.
20th of Next Month- Net GST Payment i.e. Final Return (GSTR-3). Liability of GST Payment shall be calculated by the System itself, after filing of GSTR-1 & GSTR-2 as mentioned above.
31st December of Next Financial Year- Annual Return (GSTR-9), alongwith Audit Report. Audit is compulsory for the Assessees having Annual Turnover of Rs. 2 Crore and more.
Thus during the year, total 37 Returns (12 months X 3 each month = 36 plus 1 Annual Return) are to be filed by the Assessee for each Place of Business. If the Assessee is carrying out business at more than one places, he has to obtain GST Registration at each of such place and has to file 37 Returns for each of such place of business.
Quarterly Return instead of Monthly Return is prescribed for Composition Dealers.
✍ GST to be paid under Reverse Charge in the following cases:
- Unregistered Purchases (with Names & Addresses of such suppliers).
Services such as Goods Transportation, Advocates Fees, Sponsorship Services, Director Sitting Fees, Rent a Cab etc
A very good morning
Proud to inform that
Sh NARENDRA MODI ji will address on
CA DAY ie 1st JULY at 4 pm
in Indira Gandhi Indoor Stadium.(15000 Capacity)
CA’s from DELHI & NCR will receive CARD by courier.
STUDENTS & our CLIENTS (ie BUSINESSMAN) can register online from 23rd onwards.
Simultaneously CA DAY will be held in all state capital where CM & FM of respective states will address.
I REQUEST ALL TO ATTEND THIS.
(Courtesy: CA Jaideep Singh Gusain)
* Those who have turnover of up to 20 lakhs do not have to fill GST * They can comfortably do their business without worry.
* And second, those whose turnover is up to 75,00,000 (75 lakhs) have to fill only one per cent GST * Neither do they have to fill three returns of the month nor do they have to return 37 returns of the year * they are only paid quarterly and yearly returns But you will have to take a composition scheme for this
* Approximately 65 percent of the merchants in the country come under these two points. * If GST is understood, then there can be nothing better for small and medium traders, so all the merchants are requested to stop ranting about GST without thinking. Stop spreading baseless rumours, please.
Also, the rumor is being spread that GST has the provision of arrest, but it is only the commissioner rank officer and that too only those whose turnover is 100 million or more * and that’s just some businessmen.
So, for small traders, GST is a boon. * Just need to understand it, let’s understand GST in the interest of the business and in the interest of the country and adopt it!
* A country * – * One tax * = GST
CA. Vikram Shankar Mathur
PS: Example of a letter to client:
* HOW TO GET READY FOR GST *
( Pl read all points 1-35 )
1. Get Complete your working for Closing Stock for the period 31.3.2017 / 30.6.2017 before GST Implementation date .
2. Allocate your such stock into quantative mode.
3. Get the A/c Statement from your Suppliers / Creditors for the year ended 31/3/2017 & compiled them from your books.
4. Rectify *Mismatch Reports of Purchases *, if persists .
5. Revise your Vat Returns if point no.4 applies to you.
6. Make strict follow-up to Collect all the C forms/H Form/ I forms .
7. Get your Books Finalise for FY 2016-17
8. Make a separate file of those items which are shown in your Unsold stock as on 30.6.2017 e.g. Purchase Bills/ Bill of Entry/ Excise Paying Documents etc.
9. Stock ageing be made to ascertain if any stock is more than 1yr old. If yes then dispose it off immediately or sell it to your sister concern against Tax Invoice locally.
10. Classify stock tax rate wise, purchased locally to get ITC into SGST.
11. Classify stock purchased on invoices bearing Duty Payment & non duty payments to get ITC transferred to CGST.
12. Inform your GSTIN / ARN to all suppliers of Goods & Services.
13. Obtain GSTIN of all Suppliers & Buyers.
14. Apply for migration in all states if you have centralised registration under Service Tax.
15. Train your accountants for GST accounting and returns formats.
16. Make Chart of HSN CODES & GST Rates on your goods & services to be purchased & Sold.
17. Check whether any stock of one year old is lying with you .
18. Analyse P and L and see which expenses are liable to RCM (Reverse Charge Mechanism )
19. Be in regular touch with your Chartered Accountant
20. Kindly Place the order to your printer for * Draft Format *of Tax Invoice/ Bill of Supply/ Debit – Credit Note etc ( as applicable to your business )
21. If you are planning to generate , invoices through any Software , do align with Software Consulting firm.
22. And Get approved the Draft ( pt no. 20-21) from your GST Expert.
23. Use only original Softwares for Accounting & Invoicing purposes.
24. Pl pay special attentions for any Calls, mails , messages or communication of your GST Consultant/ Department.
25. Make a practise to Upload your Sales / purchases on regular basis at GST Portal
26. GST / Interest/ penalty or any levy may be paid through RTGS/ NEFT/ Debit Card/ Credit Card Etc.
27. Due Dates for uploading of Returns :
GSTR 1 :10th of Next Month
GSTR 2 : 15th of Next Month
GSTR 3. : 20th of Next Month
* ( For Regular Dealer ) *
GSTR 4. : 18th of Next Quarter * ( Composite Dealers ) *
GSTR 5 : 20th of Next Month * ( For Non Resident )*
GSTR 6 : 13th of Next Month *(Input Service Distributors)*
GSTR 7. : 10th of Next Month * ( For TDS Returns )*
GSTR 8. : 10th of Next Month *( E-Commerce Operators )*
GSTR 9. : 31st December of Next F.Y.
*(Registered Taxable Person)*
28. Penalty Provisions for non submission of GST returns : Rs 100/- per day but subject to max. Rs.5000/- in each acts.
29. Penalty Provisions for non submission of Annual Return is 0.25% of Annual Turnover .
30. Please Final the terms & remuneration of your GST Service provider before GST Implementation Date .
31. Option of revising the return is not available in GST Regime but you can modify your uploaded data by Debit & Credit Notes.
32. Every Normal Dealer filing GSTR 1 -3 required to submit Annual Return in GSTR 9 by the due date .
33. Late filing would be permitted on payment of late fees only. Hence late filing of return will not be possible without payment of fees.
34. A return furnished without payment of full tax due as per such return shall not be treated as a valid return for allowing input tax credit in respect of supplies made by such person.
35. Input tax credit is eligible only after filing a valid GST return.