Procedures & Transition Provisions under GST

Transcription

1 Procedures & Transition Provisions under GST On at Hotel JP Celestial, Bangalore -BY CA Chandrashekar B D M/s. Shekar & Yathish Bangalore M/S. SHEKAR & YATHISH 1

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3 Flow of the Session Time of Supply of Goods Place of Supply of Goods Returns under GST E-Way Bill Tax Invoice, Debit & Credit Note Accounts & Records Transitional Provisions Shekar & Yathish 3

4 Business scenario to understand the need for Time of Supply Goods sold by a trader. Date of Invoice Date of removal from godown Date of receipt of payment In which tax period should the trader pay tax? July? August? or September? Shekar & Yathish 4

5 Business scenario to understand the need for time of Supply Audit is conducted for - FY Date of Completion of Audit Date of Invoice Date of receipt of payment In which tax period should the CA pay tax? August? September? Or October? Shekar & Yathish 5

6 Time of Supply of Goods Time of supply shall be earlier of the following dates Date of issue of invoice Invoice however has to be raised before or on removal of goods Receipt of payment For advances up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply be the date of issue of invoice at the option of supplier. Shekar & Yathish 6

7 Reverse Charge for Goods Time of supply is earliest of the following dates, namely Date of the receipt of goods, Date on recording payment in books, or Date of debit in the bank statement for payment made by purchaser of goods, or Date immediately following thirty days from the date of issue of invoice by the supplier Shekar & Yathish 7

8 Time of Supply of Service Time of supply shall be earlier of the following dates Date of issue of invoice or Invoice however has to be raised within 30 days from completion of Service. If not issued within 30 days then Date of completion of Service Receipt of payment For advances up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply be the date of issue of invoice at the option of supplier. Shekar & Yathish 8

9 Reverse Charge for Services Time of supply shall be the earlier of the following dates, Date on recording payment in books, or Date of debit in the bank statement for payment made to supplier, or Date immediately following sixty days from the date of issue of invoice by the supplier Shekar & Yathish 9

10 Date of Supply for Interest, Late Fee or Penalty Goods/Services Time of supply - Date on which the supplier receives such addition in value by way of Interest Late Fee or Penalty Shekar & Yathish 10

11 Transactions in terms of SUPPLY DOMESTIC INTERNATIONAL General Rule- 1. Location of Supplier 2. Place of Supply General Rule- 1. Location of Supplier 2. Place of Supply INTERSTATE INTRASTATE SP SR LOCATED O/S INDIA LOCATED O/S INDIA Within India Outside India Shekar & Yathish 11

12 Place of supply of goods Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported Sl. No Situations Place of supply of goods (1) Supply involves movement of Location of goods at the time of goods by supplier/ recipient/ any termination of movement of goods other person for delivery to recipient Ex: C of Chennai sells car to B of Bangalore. CAR to be delivered in Bangalore. Place of Supply will be Bangalore as goods have moved from Chennai to Bangalore. Chennai Bangalore Shekar & Yathish 12

13 Illustration Supply involves movement of goods by supplier/ recipient Movement of goods by Supplier (goods dispatched by supplier) Recipient (goods collected by recipient) Supplier's factory from where goods are removed Termination of movement for delivery Place of supply Tax Payable Orissa Karnataka Karnataka IGST payable at Orissa Orissa Orissa Orissa CGST / SGST payable at Orissa Kerala Goa Goa IGST payable at Kerala Kerala Kerala Kerala CGST / SGST payable at Kerala Shekar & Yathish 13

14 Place of supply of goods Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported If Before Or During Movement Of Goods Supplier Acting On Direction Of 3rd Person Who May Be An Agent Or Otherwise Delivers The Goods To Recipient Or Any Other Person By Transfer Of Document Of Title etc. Then it shall be deemed that the third person has received the goods Place of Supply: Principal Place of Business of Third Person Shekar & Yathish 14

15 Leg 1 Supply involves movement of goods on instruction of 3 rd party Location of Supplier ( S ) Place of delivery of Goods ( R ) Principal place of 3 rd Party ( T ) who instructed Delivery of Goods Place of Supply for S Type of tax payable by S Hyderabad Hyderabad Mysore Mysore IGST at Hyderabad Hyderabad Bangalore Bangalore Bangalore IGST at Hyderabad Hyderabad Chennai Mumbai Mumbai IGST at Hyderabad Shekar & Yathish 15

16 Leg 2 Deemed Supply involves movement of goods on instruction of 3 rd party Location of Supplier ( S) Place of delivery of Goods (R) Principal place of 3 rd Party (T) who instructed Delivery of Goods Place of Supply for T Type of tax payable by T Hyderabad Hyderabad Mysore Hyderabad IGST at Karnataka Hyderabad Bangalore Bangalore Bangalore CGST + Kar GST at Karnataka Hyderabad Chennai Mumbai Chennai IGST at Maharashtra Shekar & Yathish 16

17 Place of Supply of Goods Sl No Nature of Transaction 3 Supply without movement of goods Example Place of Supply of Goods Location of goods at the time of delivery to the recipient Seller from Karnataka Buyers from MP Place of Supply is the Shop at Karnataka Shekar & Yathish 17

18 Illustration Supply does not involve movement of goods Particulars Sale of pre-installed DG Set Manufacture of moulds by Jobworker (supplier), sold to the Principal, but retained in job worker s Premises Location of Supplier Location of Recipien t Location of goods Place of Supply Type of tax payable Delhi Mumbai Mumbai Mumbai IGST payable at Delhi Tamil Nadu Kerala Tamil Nadu Tamil Nadu CGST + TN GST payable at Tamil Nadu Shekar & Yathish 18

19 Sl No Place of Supply of Goods Nature of Transaction Place of Supply of Goods 4 Assembly or installation at site Place of assembly or installation Example Assam Karnataka Place of Supply shall be Assam Shekar & Yathish Kerala 19

20 Illustration assembly/ installation at site Particulars Installation of weigh bridge Servers supplied and installed at the office of a marketing firm Supply of workstations Location of Supplier Regd office of Recipien t Assembly/ installation site Place of Supply Type of tax payable Delhi Bhopal Bhopal Bhopal IGST payable at Delhi Karnataka Goa Karnataka Karnataka CGST + Kar GST payable at Karnataka Gujarat Gujarat Kerala Kerala IGST payable at Gujarat Shekar & Yathish 20

21 Place of Supply of Goods Sl No Nature of Transaction Place of Supply of Goods 5 Supply on board a conveyance such as vessel, aircraft, train, motor vehicle Location at which such goods are taken on board. Example A train starts from Delhi for Bangalore. On the way water bottle cartons are taken on board at Agra that are purchased by passengers during the journey from Agra to Bangalore. The place of supply of water bottles is Agra. Shekar & Yathish 21

22 Illustration Supply of goods supplied on Particulars Supply of canned aerated drinks on a Flight Sale of Haldirams mixtures by their sales person during the journey Sale of sunglasses on a ship board a conveyance Location of Supplier Loading of Goods Passenger boards at Place of Supply Type of tax payable Punjab Punjab Delhi Punjab CGST + Pun GST payable at Punjab Pune Goa Hyderabad Goa IGST payable at Pune Bangalore Chennai Cochin Chenna i IGST payable at Bangalore Shekar & Yathish 22

23 Place of Supply of Goods Goods Imported into India Goods Exported from India Place of Supply shall be the location of the Importer Place of Supply shall be the location outside India High sea sale??? Continue to be excluded from purview of GST or treated as interstate supply -IGST???? Shekar & Yathish 23

24 Illustration Import of Goods Sl no Location of Supplier Loading of Goods before supply Goods supplied to Location of Recipient 1 Thailand Thailand Assam Assam Assam Place of Supply 2 China China Kashmir Haryana Kashmir 3 Sri Lanka Sri Lanka Kerala Kerala Kerala 4 Karnataka Iran Dubai Karnataka Not an import Shekar & Yathish 24

25 Illustration Export of Goods Sl no Location of Supplier Loading of Goods before supply Goods supplied to Location of Recipient Place of Supply 1 Assam Assam Thailand Assam Thailand 2 Tamil Nadu Kashmir China California China 3 Sri Lanka Kerala Sri Lanka Sri Lanka Sri Lanka 4 Karnataka Dubai Iran Iran Not an export Shekar & Yathish 25

26 Place of supply of goods Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported Sl. No Situations Place of supply of goods (1) Supply involves movement of goods by supplier/ recipient/ any other person Location of goods at the time of termination of movement of goods terminated for delivery Ex: B of Bangalore purchases a CAR from Supplier C of Chennai. CAR to be delivered in Bangalore. Place of Supply will be Bangalore as goods have moved from Chennai to Bangalore Shekar & Yathish 26

27 Illustration Supply involves movement of goods by supplier/ recipient Movement of goods by Supplier (goods dispatched by supplier) Recipient (goods collected by recipient) Supplier's factory from where goods are removed Termination of movement for delivery Place of supply Tax Payable Orissa Karnataka Karnataka IGST payable at Orissa Orissa Orissa Orissa CGST / SGST payable at Orissa Kerala Goa Goa IGST payable at Kerala Kerala Kerala Kerala CGST / SGST payable at Kerala Shekar & Yathish 27

28 Place of supply of services Section 12 of IGST ACT Shekar & Yathish 28

29 Place of supply of services Section 12 of IGST Act - When location of supplier of service and location of recipient of service is in India Covered under Specific Rules under Sub Sections 3 to 14 Follow the Specific Requirements of these Sub-Sections Supplied to a Registered Person 2(2a) Location of Registered Person Supplied to a Person other than a registered person 2(2b) Location of recipient as per records 2(2b) Location of supplier Shekar & Yathish 29

30 POS Immovable Property (3) Relation to immovable property (architects/decorators etc), lodging accommodation (including house boat/vessel), accommodation for functions & ancillary services Location of such immovable property If location of immoveable property/boat/vessel is outside India, then place of supply is location of recipient Shekar & Yathish 30

31 POS Immovable Property Situation Ex: If Mr. A of Chennai has property in Delhi and avails architect services from B of Bengaluru If such property is located in Japan Stay in Delhi by Auditor of Bangalore Place of Supply Place of supply would be Delhi as the supplier, recipient and property are located in India Place of supply will be Chennai that is to say location of service recipient Place of Supply is Delhi Shekar & Yathish 31

32 POS Performance Based (4) Restaurant, catering, personal grooming, fitness, beauty treatment cosmetic & plastic surgery - Performance Based Location where services actually performed POS will be Kerala Person comes form Karnataka Kerala Shekar & Yathish 32

33 POS Training/Per Appraisal (5) Services in relation to training & performance appraisal Location of registered person receiving the services If person not registered - place where services performed POS will be Maharashtra or Karnataka Services Karnataka Person receiving Maharashtra Shekar & Yathish 33

34 POS Admission Sl. Situation No (6) Admission to events/ amusement parks & ancillary services Entry to Wonderla in Bangalore Place of supply Location where event is held or park is situated Bangalore Mr. M of Manipur goes to Mumbai Mumbai and purchases ticket for watching a movie at a Mumbai Cinema Hall Shekar & Yathish 34

35 P0S Events Sl. No Situation (7) Organization of events & ancillary services & assigning of sponsorship of such events Ex- Organization of events for a regd. Co of Gurgaon Place of supply Location of registered person receiving the services If person not registered - place where event actually held If event held outside India, then location of recipient Gurgaon Shekar & Yathish 35

36 POS Courier Sl. No Situation (8) Transportation of goods, including mail/courier Place of supply Location of registered person receiving the services If person not registered place where such goods are handed over for their transportation. Transportation of goods by Delhi courier to regd. Co of Bangalore Bangalore Shekar & Yathish 36

37 POS Passenger Transportation Sl. No Situation (9) Passenger transportation service (10) Service on board a conveyance such as vessel, aircraft, train or motor vehicle Place of supply Location of the registered person If person not registered place where the passenger embarks on the conveyance for the continuous journey. Location of the first scheduled point of departure of that conveyance for the journey. Shekar & Yathish 37

38 Place of Supply of Service Sl no Nature of Transaction Place of Supply 11 Telecommunication Services Post-paid mobile and internet service Location of Service recipient 12 Prepaid mobile, internet service and direct to home television service through voucher or any other means Through selling agent or a reseller or a distributor By any person to the final subscriber In other cases, through internet banking or e payment mode Fixed telecommunication line, leased circuit, cable or dish antenna Address of such agent, reseller or distributor Where such pre-payment is received or voucher sold The location of recipient of services on the records of the supplier Where telecommunication line, antenna is located Shekar & Yathish 38

39 Place of supply of services Sl. No Situation Place of supply (12) Banking or other financial services Location of the service receiver on the record of including stock broking the service provider. If location of recipient is not on record of supplier, the place of supply shall be location of the supplier of services. (13) Insurance services In case of registered person location of such person Other than registered person - location of the service receiver available on the records of the supplier of service. (14) Advertisement services to the central Each such State government, state government, a statutory body or a local authority meant for identifiable states. Shekar & Yathish 39

40 List of Forms - Returns SL No Form No Title of the Form 1 Form GSTR-1 Details of Outward Supplies 2 Form GSTR-1A Details of O/s as added, corrected or deleted by recipient 3 Form GSTR-2 Details of inward supplies of -Taxable goods -Services for claiming input credit 4 Form GSTR-2A Details as furnished in GSTR 1 by supplier 5 Form GSTR-3 Monthly return Based on details of Outward supplies, Inward supplies along with payment of amount of tax 6 Form GSTR-3A Notice to return defaulter u/s 46 Shekar & Yathish 40

41 List of Forms - Returns SL No Form No Title of the Form 7 Form GSTR-4 Quarterly return for compounding taxable persons 8 Form GSTR-4A Details of inward supplies to the recipient under Composition scheme on the basis of Form GSTR-1 by Supplier 9 Form GSTR-5 Return of Non resident 10 Form GSTR-5A Details of supplies of OIDARS by a person located outside India made to non-taxable persons in India 11 Form GSTR-6 ISD Return 12 Form GSTR-6A Details of Inward supplies to an ISD recipient on the basis of Form GSTR-1 by the supplier 13 Form GSTR-7 Return for authorities deducting TDS 14 Form GSTR-7A TDS certificate Shekar & Yathish 41

42 List of Forms - Returns SL No Form No Title of the Form 15 Form GSTR-8 Statement of TCS 16 Form GSTR-11 Details of inward supplies to be furnished by a person having UIN Shekar & Yathish 42

43 Who needs to file returns under GST? Return Assesee GSTR 1 Outward supplies GSTR 2 Inward supplies GSTR 3 Monthly return GSTR Annual return Normal/regular tax payers a a a a Due Date 10 th of next month 15 th of next month 20 th of next month By 31 st December of next FY Shekar & Yathish 43

44 Accounting Codes 8-Digit HSN code is mandatory for exports and imports Prescribed accounting code will be mandatory for services which are dependent on place of supply rules In order to differentiate between the HSN code and the Service Accounting Code (SAC), the latter will be prefixed with s Any taxpayer, irrespective of his turnover, may use HSN code at 6- digit or 8-digit level if he so desires Applicability of coding is depicted below: Turnover of preceding FY Above 5 crores 1.5 crores- 5crores Below 1.5 crores 4 digit HSN and SAC 2 digit HSN and SAC Description of goods/services Shekar & Yathish 44

45 Outward Supplies Registered taxable person other than ISD, compounding taxpayer and TDS assesses Includes zero-rated supplies, inter-state supplies, returns, exports, debit notes, credit notes and supplementary invoices issued during the said tax period Only the Board/Commissioner has power to extend the due date of filing outward supply At the Centre Board (CBEC) has powers however, at the State level, Commissioner has powers Whether only one state can extend the due date through Commissioner. What will happen to matching of credits in case of supplies to other states? Shekar & Yathish 45

46 GSTR-1 : 13 TABLES DETAILS OF OUTWARD SUPPLIES/SALES

47 Table No 1 3 Basic Information 4 B2B Invoices 5 Description Supplies to unregistered persons (Inter - state) Large Invoices > 2.5 Lacs 6 Zero rated supplies and deemed exports 7 B2C (Net of debit and credit notes) other than supplies covered in Table 5 8 Nil rated, Exempted and Non GST outward supplies* 9 Amendments in Table 4, 5 and 6 for earlier tax periods 10 Amendments in Table 7 for earlier tax periods 11(1) 11(2) Consolidated statement of Advances received/ advance adjusted Amendment of Information furnished in Table 11(1) for earlier tax period 12 HSN-wise summary of outward supplies 13 Documents issued during Tax period.

48 Table 4 B2B

49 Table 5 B2C L

50 Table 6 Zero Rated

51 Table 7 B2C S

52 Table 8: Nil rated, Exempted and Non GST outward supplies N o Description NIL Rate Suppli es Exem pted Non- GST Suppli es 8 A Inter-State supplies to registered persons 8 B Intra-State supplies to registered persons 8 C 8 D Inter-State supplies to unregistered persons Intra-State supplies to unregistered persons

53 Table 9 Amendments {4,5,6 + Dr/Cr Note}

54 Table 10 Amendments to Table 7

55 Table 11 - Advances { Received / Adjusted }

56 Table 12 HSN Summary

57 Table 13: Documents issued during the Sr. no. Nature of Document 1 Invoices for outward supply 2 Invoices for inward supply from unregistered person 3 Revised invoice 4 Debit note 5 Credit note 6 Receipt voucher tax period Sr. no. Total no. Cancelled Net issued From To

58 Sr no. Nature of Document Sr no. Total no. 7 Payment Voucher Fro m To Cancelled Net issued 8 Refund voucher 9 Delivery Challan for Job work 10 Delivery Challan for Supply on approval Table 13: Documents issued during 11 Delivery Challan in case of liquid gas the tax period 12 Delivery Challan in cases other than by way of supply

59 GSTR-2 Inward Supply Basic details Period Invoice-level inward supply information pertaining to the tax period for goods and services separately Auto-population of information submitted in GSTR-1 by the counterparty Supplier in the concerned tables of GSTR-2 Separate tables for submitting details relating to import of Goods/Capital Goods from outside India and for the services received from outside India Table for submitting details in relation to NIL rated, Exempted and Non GST inward Supplies including compounding taxpayers and unregistered dealers. Table for ITC on capital goods Table for invoices on which partial credit was availed earlier Table for the ISD credit received by the taxpayer Table for the TDS credit received by the taxpayer Details of debit note and credit note Shekar & Yathish 59

60 GSTR-3 Monthly Return Basic details Period Turnover Details including Gross Turnover, Export Turnover, Exempted Domestic Turnover, Nil Rated Domestic Turnover, Non GST Turnover and Net Taxable Turnover Auto-population of information from GSTR-1 and GSTR- 2 Details regarding revision of invoices relating to outward and inward supplies Details of ITC utilized against tax liability of CGST, SGST and IGST on supplies of goods and services. Net tax payable under CGST, SGST, IGST. Interest on reversal of credit? Shekar & Yathish 60

61 Annual Return Registered taxable person other than ISD, compounding taxpayer and TDS assesses To be filed electronically on or before 31 st December following the end of such FY. Every taxable person who is required to get his accounts audited shall furnish, electronically, the annual return along with the audited copy of the annual accounts and a reconciliation statement, reconciling the value of supplies declared in the return furnished for the year with the audited annual financial statement, and such other particulars as may be prescribed Shekar & Yathish 61

62 Annual return Basic details Statutory audit details Name and details of auditors Total value of outward and inward supplies with details of ITC availed Details of income earned from sources other than supply and also expenses other than purchases Reconciliation between CGST, SGST and IGST Value as per PL may not be same as value for GST. How to reconcile?? Shekar & Yathish 62

63 Where to file the return? A registered Tax Payer shall file GST Return at GST Common Portal either: i. by himself logging on to the GST Common Portal using his own user ID and password; ii.through his authorized representative. The filing may be done either directly or by using Applications developed by accounting companies / IT companies which will interact with GST System using APIs or through Facilitation Centre (FC). The concept of tax return preparer(trp) is prevalent under GST. Shekar & Yathish 63

64 Revision of returns No revision of returns All unreported invoices of previous tax period would be reflected in the return for the month in which they are proposed to be included. The interest, if applicable will be auto populated. Shekar & Yathish 64

65 Late filing of return Registered taxable person who fails to furnish the details of outward or inward supplies by the due date Liable for penalty of Rs 100/- per day of default Penalty of Rs. 100 per day of default subject to a maximum of 0.25% of Aggregate Turnover Shekar & Yathish 65

66 E Way Bill Required only when value > Required when goods are moved on account of Supply Other than Supply due to inward supply from an unregistered person FORM GST INS-01 to be filed before commencement of movement Shekar & Yathish 66

67 E Way Bill Upon generation of the e-way bill - unique e- way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal. E way bill generated but goods not transported Can be cancelled within 24 hrs of generation Shekar & Yathish 67

68 E Way Bill Validity Distance Validity period Less than 100 km One day 100 km or more but less than 300km Three days 300 km or more but less than 500km Five days 500 km or more but less than 1000km Ten days 1000 km or more Fifteen days Shekar & Yathish 68

69 E-Way Bill E-way bill be made available to the recipient on the common portal, who shall communicate his acceptance or rejection of the consignment covered by the e-way bill. If recipient does not communicate his acceptance or rejection within 72 hours, it shall be deemed that he has accepted the said details. Generation & Cancellation can be by SMS Shekar & Yathish 69

70 TAX INVOICE Tax invoice in respect of supply of goods: a) Supply of taxable goods: A tax invoice is required to be issued for supplying taxable goods before or at the time of: a) removal of goods for supply to the recipient, where the supply involves movement of goods b) delivery of goods or making available thereof to the recipient, in any other case Shekar & Yathish 70

71 TAX INVOICE A tax invoice to contain the following particulars The name, address and GSTIN of the supplier, a consecutive serial number Date of its issue, The name, address and GSTIN/Unique ID Number, if registered, of the recipient, Name and address of the recipient and the address of delivery, along with the name of state and its code, if such recipient is unregistered and where the taxable value of supply is fifty thousand rupees or more; HSN code of goods or Accounting code of services; Shekar & Yathish 71

72 Conntinued. TAX INVOICE Quantity in case of goods Total value of goods or services or both; Taxable value of goods or services or both taking into account discount or abatement, if any; Rate of tax (CGST, SGST, IGST); Amount of tax charged in respect of taxable goods or services (CGST, SGST, IGST); Place of supply along with the name of state Address of delivery where the same is different from the place of supply; Whether the tax is payable on reverse charge; Signature or digital signature of the supplier or his authorised representative. Shekar & Yathish 72

73 TAX INVOICE Supply of taxable goods in case of export: In case of export, in addition to the details mentioned above, the invoice shall carry an endorsement SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST or SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST In respect of details of recipient in the invoice, the invoice should contain the following details- a) Name and address of the recipient; b) Address of delivery; c) Name of the country of destination; and d) Number and date of application for removal of goods for export Shekar & Yathish 73

74 TAX INVOICE Supply of Exempted goods: If a registered person supplying exempted goods, instead of a tax invoice, a bill of supply shall be issued. Bill of supply need not be issued if value of goods or services or both supplied is less than Rs 200. Shekar & Yathish 74

75 TAX INVOICE Bill of Supply The bill of supply shall contain the following details- Name, address and GSTIN of the supplier, a consecutive serial number, in one or multiple series, containing alphabets or numerals or special characters hyphen or dash and slash symbolised as - and / respectively, and any combination thereof, unique for a financial year; Dates of its issue, Name, address and GSTIN/ Unique ID Number, if registered, of the recipient, HSN code/accounting code for services, Description of goods or services, Value of goods or services taking into account discount or abatement if any, and Signature or digital signature of the supplier or his authorised representative Shekar & Yathish 75

76 TAX INVOICE Goods sent on Approval basis: Where the goods (being sent or taken on approval or sale / return basis) are removed before it is known where the supply will take place, the invoice shall be issued; OR a) before at the time of supply takes place Whichever is Earlier b) Six months from the date of removal Shekar & Yathish 76

77 TAX INVOICE Tax invoice in respect of supply of Services: a) Supply of taxable Services: A Tax Invoice is required to be issued for supplying the taxable service a) before or after the provision of service BUT within a prescribed period (30 days from the date of supply of service as per draft invoice rules) (in case of Banking/Insurer/ Financial institution including NBFC invoice shall be issued within 45 days from the date of supply Shekar & Yathish 77

78 TAX INVOICE Supply of Exempted services: If a registered person supplying exempted service, instead of a tax invoice, a bill of supply shall be issued. Bill of supply need not be issued if value of goods or services or both supplied is less than Rs 200. Shekar & Yathish 78

79 ISSUE OF RECEIPT OF VOUCHER A receipt voucher shall contain the following details: name, address and GSTIN of the supplier; a consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as - and / respectively, and any combination thereof, unique for a financial year date of its issue; name, address and GSTIN or UIN, if registered, of the recipient; Shekar & Yathish 79

80 ISSUE OF RECEIPT OF VOUCHER Continued. description of goods or services; amount of advance taken; rate of tax (central tax, State tax, integrated tax, Union territory tax or cess); amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax, Union territory tax or cess); place of supply along with the name of State and its code, in case of a supply in the course of inter-state trade or commerce; whether the tax is payable on reverse charge basis; and signature or digital signature of the supplier or his authorized representative Shekar & Yathish 80

81 Revised Invoice Registered taxable person may, within one month from the date of issuance of certificate of registration, issue a revised invoice against the invoice already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him. Registered person may issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered during such period. In the case of inter-state supply, where the value does not exceed Rs 2,50,000, a consolidate revised invoice may be issued separately in respect of all recipient located in a state who are not registered during such period. Shekar & Yathish 81

82 Invoice not necessary in certain circumstances if the value of the goods or services or both supplied is less than two hundred rupees if the following conditions are fulfilled: a) the recipient is not a registered person; and b) the recipient does not require such invoice, and shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies Shekar & Yathish 82

83 Credit Note Credit Note is to be issued within: 30 th day of September following the end of the Financial Year in which supply was made Date of filing of relevant annual return Whichever is earlier Shekar & Yathish 83

84 Debit Note Debit Note Means In case the taxable value and / or tax charged in the tax invoice is less than the actual taxable value and / or tax payable in respect of such supply. Details of such debit note to be declared in the return for the month during which such debit note has been issued. Shekar & Yathish 84

85 Debit Note or credit Note shall containing the following details- name, address and GSTIN of the supplier; nature of the document; a consecutive serial number containing alphabets or numerals or special characters -hyphen or dash and slash symbolised as - and / respectively,, and any combination thereof, unique for a financial year; date of issue of the document; name, address and GSTIN or UIN, if registered, of the recipient; name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is unregistered; serial number and date of the corresponding tax invoice or, as the case may be, bill of supply; value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient; and signature or digital signature of the supplier or his authorized representative Shekar & Yathish 85

86 Manner of Issuing Invoice The taxable person should issue the tax invoice in the following manner In case of supply of goods - Tax invoice shall be prepared in triplicate Original for Recipient. Duplicate for transporter. Triplicate for supplier. In case of supply of services Tax invoice shall be issued in duplicate» Original for recipient» Duplicate for Supplier Shekar & Yathish 86

87 Accounts & Records A)Maintenance of accounts by registered persons 1. To maintain books of accounts at his principal place of business 2. In case of more than one place of business, then accounts related to each place of business should be maintained in respective places. 3. Records maintained should give a true and correct account of: (Act read with draft Accounts & records rules) production or manufacture of goods; inward and outward supply of goods or services or both; stock of goods; input tax credit availed; output tax payable and paid; and goods or services imported or exported supplies attracting payment of tax on reverse charge along with relevant documents Shekar & Yathish 87

88 Accounts & Records A) Maintenance of Stock Records Registered person other than Composition tax payer shall maintain accounts of stock in respect of each commodity received and supplied by him. Such accounts shall contain following particulars production or manufacture of goods; i. Opening balance ii. iii. iv. Receipt Supply Goods lost v. Goods stolen vi. Goods destroyed vii. Written off viii. Goods disposed by way of gift or free samples ix. Balance of stock including raw materials, finished goods, scrap and wastage thereof. Shekar & Yathish 88

89 Accounts & Records Manufacturer shall also maintain monthly production accounts, disclosing: i. the quantitative details of raw materials or services used in the manufacture and ii. quantitative details of the goods so manufactured including the waste and by products thereof Shekar & Yathish 89

90 Accounts & Records Supplier of service shall maintain accounts, showing: i. the quantitative details of goods used in the provision of each service ii. details of Input services utilised iii. the Service supplied Shekar & Yathish 90

91 Audit of Accounts Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of audited annual accounts, the reconciliation statement and such other prescribed documents. Shekar & Yathish 91

92 Period of retention of documents Every person required to keep books of account shall retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records. If registered person is party to any appeal or revision or proceeding or investigation, then such person shall retain the books of account and other records for a period of 1 year after final disposal of such appeal or revision or proceeding or investigation or for the period of 72 months as specified above, whichever is later. Shekar & Yathish 92

93 Transitional Provisions Shekar & Yathish 93

94 Flow of the session Why Transition? Process of Migration Transfer of Credits to GST Returns Miscellaneous Transition transactions Shekar & Yathish 94

95 Why Transition??? You have sold goods with VAT pre-gst and goods are returned post GST. Can you claim VAT credit in GST return for this transaction? You have purchased goods with Excise Duty before GST. You have returned those goods post GST. Can you reverse Excise credit in GST returns? You have a refund pending under Service Tax. What happens under GST? Shekar & Yathish 95

96 Migration to GST Actual Migration Process to start from the appointed day Valid PAN is compulsory Certificate of registration is granted on provisional basis Final certificate of registration to granted on submission of required documents. Shekar & Yathish 96

97 How to take Credits into GST Return Balance of Credit under Earlier Law Excise Service Tax VAT Under GST Shall be carried forward as CGST Shall be carried forward as CGST Shall be carried forward as SGST Shekar & Yathish 97

98 Cases where credits will not be allowed to C/f to GST Opting into Composition Scheme If such ITC is restricted under GST If last 6 months returns are not furnished; If credit relates to manufactured goods notified by the Government. Where GST Tran 1 is not filed within 60 days. For transfer of VAT credit, all forms C/F/H/I Forms are collected. Shekar & Yathish 98

99 Credit of Capital Goods not availed Balance Credit can be claimed even if not claimed in the return Credit should be admissible under GST Act Need to declare the following, assetwise Amount of Credit availed under earlier law Balance remaining un-utilized Shekar & Yathish 99

100 Credits reversed due to Non- Payment Where CENVAT credit has been reversed due to non-payment within a period of three months under old law Credit can be reclaimed if payment is made within three months from the appointed day. Details of such credits are to be declared Shekar & Yathish 100

101 Job Worker Credit of Inputs/Semi-finished/Finished Goods goods sent out for Job-Work are lying in Job Worker s Premises as on appointed date If goods not returned within 6 months from appointed date, credit is to reversed. Commissioner could extent to further 2 months In case of Semi-finished goods/finished goods, it can either be sent back to principal or can be sold directly from J/w s premises Principal & Job-worker to declare, within 60 days, stock lying with his agents/branch, separately agent-wise/branch-wise Shekar & Yathish 101

102 Sales Returns post GST Sales before GST and Sales returns after GST - Tax amount can be claimed as refund if - Sale should not be earlier than six months Goods should be returned within 6 months from the appointed date Returns of goods should be from a person other than registered person (Only B2C returns). Such goods are to be identified to the satisfaction of proper officer If the said goods are returned by a registered person, the return of such goods shall be deemed to be a supply Shekar & Yathish 102

103 Price Revisions post GST Upward revision - Where the sale/provision of service has taken place pre-gst Price revision would be liable to GST. Downward revision of Price post GST - Where the sale/provision of service has taken place pre-gst It can be reduced from liability to GST. Recipient of credit note should reduce the amount from his ITC. Shekar & Yathish 103

104 Pending refunds and litigations Refund under earlier law would be dealt under earlier law. If claim for refund of CENVAT credit is fully or partially rejected, the amount so rejected shall lapse. Recovery of Tax would be treated as arrears under GST. Shekar & Yathish 104

105 Revision of returns If revision results to excess credit Should go for refund Unjust enrichment to apply. If revision results to recovery Should pay as GST. Shekar & Yathish 105

106 Running Contracts Contracts entered Pre-GST Activity is happening during GST GST would only apply! Shekar & Yathish 106

107 Goods Sent on Approval Basis Goods sent on approval basis not to be liable for GST if Goods are sent not earlier than six months Goods are returned to the seller after appointed date Goods are returned within six months from the appointed day: Six months may be extended by the Commissioner for a further period not exceeding two months: Person to declare stocks sent on approval basis in GST Tran 1 within 60 days of appointed date. Tax shall be payable in case of sale on approvals sent before GST, if Goods are returned after specified period or not retuned within specified period. Shekar & Yathish 107

108 Action plan Immediate Reconciling of returns to books Excise, Service tax, Vat, Luxury Tax, etc., Missed out credit can be taken Form C, F, H, E-1/II Put task force in companies to collect forms Review of Refund and tax recredit of claims Doubtful v/s. Reasonable chance Shekar & Yathish 108

109 Before Action plan Returns to be filed for 6 months before appointed date CST is a cost for stock transfers Follow Just in time purchases Stocks with agents to be declared Shekar & Yathish 109

110 For any clarification or call on Shekar & Yathish 110