IMPORTANT POINTS RELATED TO INVOICE, CREDIT NOTE & DEBIT NOTE

1.   For goods, tax invoice has to be issued before or at the time of their removal for supply to the Recipient.

2.   For services, tax invoice has to be issued before or after the provision of service but within 30 days of date of supply. This period is 45 days in the case of taxable supply by an insurer or a banking company or a financial institution, including a non-banking financial company.

3.   In case of combined supply of taxable and exempted goods and services the person can issue one tax invoice for the taxable invoice and also declare exempted supply in the same invoice.

4.   There is no requirement to take Aadhaar / PAN details of the customer under the GST Act.

5.   For RCM liabilities tax invoice has to be issued on self either daily, weekly or at least once at the end of the month.

6.   Certain compulsory fields have been specified for invoices

7.   2 digit HSN Code is required to be mentioned if aggregate turnover is between Rs. 1.50 crore to 5 crore, 4 digit if this turnover is over Rs. 5 Crore. Tax payers below turnover of Rs. 150 crore Designating Officer not require to mention this code. These codes are given in R.K. Jain's GST Tariff of India

8.   Export invoices shall carry an endorsement "SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST" or "SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF IGST”.

9.   A Consolidated Invoice for the entire day can also be issued if value of each supply is less than Rs. 200 and the recipient is not registered.

10. For supply of goods, the invoice shall be prepared in triplicate marked original for recipient duplicate for transporter and triplicate for supplier.

11.  For supply of services, the invoice shall be prepared in duplicate marked original for recipient and duplicate for supplier.

12. A taxable supplier working under composition scheme will issue a Bill of supply instead of invoice.

13. For Advance payment, a Receipt voucher would be issued followed by regular tax invoice on supply.

14. In case of continuous supply of services, the issuance of invoice will depend on the terms of contract.

15. In case where the goods are sent or taken on approval, the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is earlier.

16. A credit note can be issued to recipient if recipient returns the goods to the supplier or Services are found to be deficient.

17. Credit note can also be issued to recipient if taxable value in the original invoice exceeds actual taxable value or tax charged in the original invoice exceeds actual tax to be paid

18. A debit note may be issued by supplier to recipient if tax charged in that original tax invoice is found to be less than the taxable value or tax payable in respect of such supply.

Effort to compile few important points and formats applicable under the GST (Goods and Service Tax) ACT, 2017

As we all are aware that we are passing through the regime where entire indirect system is switching over to the GST which is governed by four Acts i.e. IGST, CGST, SGST & UGST. All the four acts will work in their respective spheres as per their applicability. It is very important to discuss that under the GST taxable event shall be the supply of goods or services or both made for consideration in the course of furtherance of business whereas the taxable event under the existing indirect tax laws are on manufacture, sale or on service. It is very important to understand the concept of supply in which very important terms like sale transfer, barter system, exchange license, lease and disposal plays vital role. A minute examination of these words raises one very vital issue i.e. under the GST even transfers e.g. interstate transfer, branch transfer and consignment transfer are also covered in the definition of supply hence subject to tax except within the state transfer e.g. branch transfer and stock transfer.

GST will be leviable if the transaction will qualify below mentioned six points:

1. ·         The activity involves supply of goods or services or both;
2. ·         The supply is for a consideration unless otherwise specifically provided for;
3. ·         The supply is made in the course or furtherance of business;
4. ·         The supply is made in the taxable territory;
5. ·         The supply is a taxable supply and;
6. ·         The supply is made by a taxable person.

When GST is leviable.

GST is leviable on every stage of supply and when the same is sold within the state then CGST and SGST both will apply for example if the rate of tax on the item is 18% then seller is to charge on invoice 9% as CGST and 9% as SGST simultaneously.

If the goods are sold in the course of interstate then seller is to charge IGST on the invoice and the rate will remain same but only IGST is to be charged.

Schedule of Services 

Schedule of Goods

Below are the formats required to be filled for the compliance of GST beside form-R1, R2, R3, R4, R5 on different occasions:

Registration format - GST

Composition Format - GST

Input Tax Credit Format - GST

Payment rules format - GST

Refund format - GST

Under GST all the registration certificates will be issued online and under the GST Act the dealer is under an obligation to upload every sale and purchase bill the concept of rating will play vital role the concern which will make compliance as required under the act will be rated accordingly.

Under the GST, Government has issued draft Electronic Way (e-way) Bill Rules - some important provisions are as under:

1. E way bill will have to issued for  all supplies of goods exceeding value of 50000

2. E-way bill will have to be issued online on GST website

3. Validity of e-way bill from the time and date of its issuance will be as under :

- for 100 kms - 1 day

- for 100 to 300 kms - 3 days

- for 300 to 500 kms - 5 days

- for 500 to 1000 kms - 10 days

- for more than 1000 kms - 15 days

4. An e-way bill can be cancelled only within 24 hrs of its issuance

5. Where a vehicle has been detained for more than 30 mins the transporter can upload this information on GSTN.

INSPECTION AND SEARCH

1.    For inspection prior permission of Joint Commissioner is required and the permission should be on some reasoning.

2.    If inspection is to be converted into search then valid search warrant is required.

3.    If want to search house, then lady officer must accompany

4.    Officer must show identity.

5.   Signature of the person on whose premises search will be conducted, is mandatory on search warrant.

6.    For seized record and stocks or for accountability, proper Panchnama is required to be prepared.

7.    Beside the signatures of the aggrieved person the signature of two witnesses are required.

8.    If any document were impounded, then the same must be returned within a period of 60 days.

EXPORT

1.    Every dealer who is entitled for refund, will get refund 90% of the total amount within 7 days.

2.    In other cases, if dealer wants to get 100% in totality then the department is under an obligation to grant the refund within 60 days.

POWER OF THE COMMISSIONER TO MAKE INSTALLMENTS IF DEALER PROVES HIS FINANCIAL HARDSHIP THAT HE IS NOT IN A POSITION TO MAKE THE PAYMENT OF TAXES DUE IN ONE STROKE

This act has conferred the powers on the Commissioner to make the installments of the tax due where the dealer proves his financial hardship.

ASSESSMENT

Beside scrutiny self-assessment, summary assessment, provisional assessment, regular assessment, a new concept of protective assessment is introduced as prevalent under the IT Act.

Normal Time limit for framing the assessment is three years but where the case is of fraud or any willful statement of suppression or evasion of tax then the period is five years.

Goods returned

As per the scheme of the act when purchaser returns the goods then supplier of goods is under an obligation to issue the credit note and both the transactions are required to be shown in the returns so that detail of credit note shall be matched with the corresponding reduction in claim for input tax credit by the purchaser in his valid return for the same tax period or in any subsequent tax period and simultaneously the reduction in output tax liability by the supplier.  

Conclusion to the post:

It is undisputed that the GST Act is the Act which is comprised of number of other acts which are working simultaneously for the collection of the taxes, duties etc. like (a) Central Excise Duty, (b) Service Tax, (c) VAT, (d) Central Sales Tax (CST), (e) Purchase Tax, (f) Entry Tax, (g) Luxury Tax, (h) Entertainment Tax, (i) Lottery Tax, (j) Cess and Surcharge, (k) Additional Duty of Excise, (l) Additional Duty of Custom (CVD), (m) Special Additional Duty of Custom (SAD) and the effort is to reduce the problems of the dealers as the Government has decided to take-off the check posts and only mobile check posts will be enforce everything and will be online. Though it is a new concept comprising of both goods and services so it requires the knowledge for complying the law in an appropriate manner and the above are the few provisions, rates, formats for smooth compliance of the GST Act.

GST USER GUIDE FOR MIGRATION IN PUNJAB

User Guide for Migration to GST in Punjab

As we all are aware that GST Migration starts from 16^th of December 2016 for State of Punjab and the same will close on 31st of December 2016.

For Login, to GST Portal (www.gst.gov.in) registrants are under an obligation to obtain Provisional ID and Password from the Excise and Taxation Department of their concerned Districts.

As earlier, link was also sent for the specimen for Authorizing the Representative to obtain Provisional User ID and Password and documents required for kind reference, which can be obtained from here.

SOME IMPORTANT POINTS WHICH REQUIRS ATTENTION SO THAT WHILE REGISTERING ON GST PORTAL, ONE CAN EASILY UPLOAD THE INFORMATION:

1.    Migration of VAT holder, having registration upto December 2015 will be done and for the rest, those registered after 2015 will be migrated afterwards.

2.    For migration to GST, DSC (Digital Signature Certificate) and E-Signature are mandatory for submitting the application.

3.    ‘Constitution of business’ proof is mandatory to be uploaded in PDF or JPEG format. 

4.  For proprietorship, one can use his VAT Registration Certificate, in which proprietary status is shown, can be used, if this document is not available then any other proof can be used.

HOW TO LOGIN BY NEW USER:

1. Migrant will have to open GSTN Portal (www.gst.gov.in) for Enrolment Process.

2. Login as new user by clicking the NEW USER LOGIN Icon.

The below mentioned image will be reflected.

Thereafter, declaration webpage will reflect as below.

Tick Mark Declaration and Click ‘continue’ button.

How to LOGIN TO GST PORTAL BY USING THE ID AND PASSWORD

Enter provisional User Id and Password obtained from Excise and Taxation Department from your concerned Districts of Punjab.

Thereafter, Press ‘login’ for next step.

THEN THE IMPORTANT PAGE OF VERIFICATION WILL APPEAR

It is important that valid email and mobile number of the authorized signatory only, must be incorporated. As, all future correspondence from GST Portal will be sent on this number and mail ID.

WARNING: Please fill the Email and Mobile Number with due caution, as the same is non-­editable till 1^st of April 2017 and in no case, Tax Professional Email or Mobile Number can be given.

Click ‘continue’ button.

One Time Password (OTP) Password

Enter OTP password, which was sent by the GST portal, as one will appear on phone and other on Email.

WARNING: Every best possibility should be applied while entering the OTP Passwords as in case of any error, one is to repeat the entire process and it is also pertinent to mention that One Time Password will expire in 15 minutes. In any case, if there will be any error, one case use the option of “Resend OTP”.

NEW USER NAME AND PASSWORD

User name and password will be of choice subject to availability and security questions must be remembered, as in case to reset the password, the same is required. 

FOR SUCCESSFUL LOGIN

Below mentioned webpage will appear which will ask for your username and password.

► Enter username and password created in previous step

► Click on “Login”

ENTER THE DETAILS OF BUSINESS 

1.    Few below mentioned columns are automatically filled up and no change can be made as PAN based.

·         Legal Name of business

·         Legal Name of business

·         PAN Number

·         State

·         Zone/District/Ward/Zone Number 

2.    Next Step:

Select and fill the Registration type, Registration Number and Date of Registration. 

3.    For entering other registrations like Service Tax, Central Excise, one is to click ‘Add’ and is to upload the required documents. For required list of document – CLICK HERE.

 4.   Save and continue. 

ENTER DIRECTOR/PROMTER/PARTNER DETAILS, AUTHORIZED SIGNATORY AS PER COLUMNS:

After filing the details,  Save and continue 

ENTER DETAILS OF PRINCIPAL PLACE OF BUSINESS

For details of Principal Place of Business, necessary columns are required to be filled. Some are mandatory fields, beside this, one is to upload the Proof of Principal Place of Business. Relevant options are available, so use the same as per nature of business.

Click on Save and Continue to go to next step.

 

ENTER DETAILS OF ADDITIONAL PLACE OF BUSINESS IF ANY BY USING THE COLUMN OF “ADD PLACE OF BUSINESS”

ENTER DETAILS OF GOODS & COMMODITIES WITH TOP FIVE COMMODITIES SUPPLIED AND ALSO ENTER THE HSN CODE.

Save and continue.

IN CASE THE DEALER IS DEALING WITH SERVICE THEN SERVICE ACCOUNDING CODE (SAC) OF THE CONCERNED SERVICE.

Then Save and continue.

ENTER DETAILS OF BANK ACCOUNT

Details are as under:

·         Account Number,

·         IFSC code of bank branch

·         Type of account

Note: Maximum 10 Bank Accounts can be added. Upload documents in support. 

Click on Save and Continue.

VERIFICATION FORM

At this stage, the GST Portal will verify the entries and ask for DSC in case of Companies and Digital Signature Certificate (DSC). 

Tick on the Verification box and enter the information i.e.

·         Name of Authorized Signatory,

·         Designation of Authorized Signatory,

·         Place,

·         Date.

NOTE: While submitting details, Digital signatures are required to be used.

Click on ‘Proceed’ where image is reflecting ‘Warning’ to go to the next step.

 

ENTER PARTICULARS OF DIGITAL SIGNATURE CERTIFICATE

Click Digital Signature by selecting from pop-up window.

Note: In case Digital Signature Certificate is not registered with GST common portal then one cannot submit enrolment application and for this one is to register the DSC at the GST common portal by clicking on the column of Register DSC Menu.

PROCESS OF VALIDATION

After completing all above steps, the following window will open, showing the Success of Submission. After submission the GST portal will verify the information and you will receive unique application reference Number (ARN) on the registered Email Address and Mobile Phone Number. Thereafter, on validation, acknowledgement will be received in 10 to 15 minutes.