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Procedures & Transition
Provisions under GST
On 23-06-2017 at Hotel JP Celestial, Bangalore
-BY CA Chandrashekar B D
M/s. Shekar & Yathish
Bangalore
M/S. SHEKAR & YATHISH 1
.
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
Business scenario to understand
the need for “Time of Supply”
• Goods sold by a trader.
• Date of Invoice – 01.09.2017
• Date of removal from godown –
30.08.2017
• Date of receipt of payment – 30.07.2017
In which tax period should the trader pay
tax? July? August? or September?
4 Shekar & Yathish
Business scenario to understand
the need for time of Supply
• Audit is conducted for - FY 2016-17
• Date of Completion of Audit - 30-09-
2017
• Date of Invoice - 10-10-2017
• Date of receipt of payment - 01-08-2017.
In which tax period should the CA pay
tax? August? September? Or October?
5 Shekar & Yathish
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.
6 Shekar & Yathish
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
7 Shekar & Yathish
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.
8 Shekar & Yathish
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
9 Shekar & Yathish
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
10 Shekar & Yathish
Transactions in terms of SUPPLY
DOMESTIC
General Rule-
1. Location of Supplier
2. Place of Supply
INTERSTATE
Within India
Outside India
INTRASTATE
INTERNATIONAL
General Rule-
1. Location of Supplier
2. Place of Supply
SP LOCATED O/S INDIA
SR LOCATED O/S INDIA
Shekar & Yathish 11
Place of supply of goods
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 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.
Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported
Shekar & Yathish 12 Chennai Bangalore
Illustration – Supply involves movement of
goods – by supplier/ recipient
Movement of goods by
Supplier's factory from where goods are removed
Termination of movement for delivery
Place of supply
Tax Payable
Supplier (goods dispatched by supplier)
Orissa Karnataka Karnataka IGST payable at Orissa
Orissa Orissa Orissa CGST / SGST payable at Orissa
Recipient (goods collected by recipient)
Kerala Goa Goa IGST payable at Kerala
Kerala
Kerala Kerala CGST / SGST payable at Kerala
Shekar & Yathish 13
Place of supply of goods Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported
Shekar & Yathish 14
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
Leg 1 – Supply involves movement of
goods – on instruction of 3rd party
Location of Supplier ( S )
Place of delivery of Goods ( R )
Principal place of 3rd 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
Leg 2– Deemed Supply involves movement
of goods – on instruction of 3rd party
Location of Supplier ( S)
Place of delivery of Goods (R)
Principal place of 3rd 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
Place of Supply of Goods
Sl No
Nature of Transaction Place of Supply of Goods
3
Supply without movement of goods
Location of goods at the time of delivery to the recipient
17 Shekar & Yathish
Example
Seller from Karnataka
Place of Supply is the Shop at Karnataka
Buyers from MP
Illustration– Supply does not involve
movement of goods Particulars Location
of Supplier
Location of Recipient
Location of goods
Place of Supply
Type of tax payable
Sale of pre-installed DG Set
Delhi Mumbai Mumbai Mumbai IGST payable at Delhi
Manufacture of moulds by Job-worker (supplier), sold to the Principal, but retained in job worker’s Premises
Tamil Nadu
Kerala Tamil Nadu Tamil Nadu
CGST + TN GST payable at Tamil Nadu
Shekar & Yathish 18
Place of Supply of Goods Sl No
Nature of Transaction Place of Supply of Goods
4 Assembly or installation at site Place of assembly or installation
19 Shekar & Yathish
Example
Installation @
Assam
Recipient @
Kerala
Supplier @
Karnataka
Place of Supply shall be Assam
Illustration–assembly/ installation at site Particulars Location
of Supplier
Regd office of Recipient
Assembly/ installation site
Place of Supply
Type of tax payable
Installation of weigh bridge
Delhi Bhopal Bhopal Bhopal IGST payable at Delhi
Servers supplied and installed at the office of a marketing firm
Karnataka Goa Karnataka Karnataka CGST + Kar GST payable at Karnataka
Supply of workstations
Gujarat Gujarat Kerala Kerala IGST payable at Gujarat
Shekar & Yathish 20
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.
21 Shekar & Yathish
Illustration–Supply of goods supplied on
board a conveyance Particulars Location of
Supplier Loading of Goods
Passenger boards at
Place of Supply
Type of tax payable
Supply of canned aerated drinks on a Flight
Punjab Punjab Delhi Punjab CGST + Pun GST payable at Punjab
Sale of Haldirams mixtures by their sales person during the journey
Pune Goa Hyderabad Goa IGST payable at Pune
Sale of sun-glasses on a ship
Bangalore Chennai Cochin Chennai
IGST payable at Bangalore
Shekar & Yathish 22
Place of Supply of Goods
23 Shekar & Yathish
High sea sale??? Continue to be excluded from purview of GST or treated as interstate supply -IGST????
Goods Imported into India
Place of Supply shall be the location of the Importer
Goods Exported from India
Place of Supply shall be the location outside India
Illustration–Import of Goods
Sl no
Location of Supplier
Loading of Goods before supply
Goods supplied to
Location of Recipient
Place of Supply
1 Thailand Thailand Assam Assam Assam
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
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
Place of supply of goods
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
Sec 10 of IGST Act: Place of supply of goods, other than supply of goods imported/exported
Shekar & Yathish 26
Illustration – Supply involves movement of
goods – by supplier/ recipient
Movement of goods by
Supplier's factory from where goods are removed
Termination of movement for delivery
Place of supply
Tax Payable
Supplier (goods dispatched by supplier)
Orissa Karnataka Karnataka IGST payable at Orissa
Orissa Orissa Orissa CGST / SGST payable at Orissa
Recipient (goods collected by recipient)
Kerala Goa Goa IGST payable at Kerala
Kerala
Kerala Kerala CGST / SGST payable at Kerala
Shekar & Yathish 27
Place of supply of services
Section 12 of IGST ACT
Shekar & Yathish 28
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
Shekar & Yathish 29
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
Covered under Specific Rules under
Sub Sections 3 to 14
Follow the Specific Requirements of these Sub-Sections
POS – Immovable Property
Shekar & Yathish 30
(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
POS – Immovable Property
Situation Place of Supply
Ex: If Mr. A of Chennai has
property in Delhi and avails
architect services from B of
Bengaluru
Place of supply would be Delhi as
the supplier, recipient and
property are located in India
If such property is located in
Japan
Place of supply will be Chennai
that is to say location of service
recipient
Stay in Delhi by Auditor of
Bangalore
Place of Supply is Delhi
Shekar & Yathish 31
POS – Performance Based
Shekar & Yathish 32
(4) Restaurant, catering,
personal grooming, fitness, beauty
treatment cosmetic & plastic
surgery - Performance Based
Location where services actually performed
Person comes
form Karnataka
Restaurant @
Kerala
POS will be Kerala
POS – Training/Per Appraisal
Shekar & Yathish 33
(5) Services in relation to
training & performance
appraisal
• Location of registered person receiving the services • If person not registered - place where services performed
Services done @
Karnataka
Person receiving service
@ Maharashtra
POS will be Maharashtra or Karnataka
POS – Admission Sl.
No
Situation Place of supply
(6) Admission to events/
amusement parks & ancillary
services
Location where event is held or
park is situated
Entry to Wonderla in
Bangalore
Bangalore
Mr. M of Manipur goes to
Mumbai and purchases ticket
for watching a movie at a
Mumbai Cinema Hall
Mumbai
Shekar & Yathish 34
P0S – Events Sl. No Situation Place of supply
(7) Organization of events &
ancillary services &
assigning of sponsorship of
such events
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
Ex- Organization of events for
a regd. Co of Gurgaon
Gurgaon
Shekar & Yathish 35
POS – Courier Sl. No Situation Place of supply
(8) Transportation of goods,
including mail/courier
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
POS – Passenger Transportation Sl. No Situation Place of supply
(9) Passenger transportation
service
Location of the registered person
• If person not registered – place where
the passenger embarks on the
conveyance for the continuous journey.
(10) Service on board a conveyance
such as vessel, aircraft, train or
motor vehicle
Location of the first scheduled point of
departure of that conveyance for the
journey.
Shekar & Yathish 37
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
Address of such agent, reseller or distributor
By any person to the final subscriber Where such pre-payment is received or voucher sold
In other cases, through internet banking or e payment mode
The location of recipient of services on the records of the supplier
Fixed telecommunication line, leased circuit, cable or dish antenna
Where telecommunication line, antenna is located
38 Shekar & Yathish
Place of supply of services Sl. No Situation Place of supply
(12) Banking or other financial services
including stock broking
Location of the service receiver on the record of
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
government, state government, a
statutory body or a local authority
meant for identifiable states.
Each such State
Shekar & Yathish 39
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
40 Shekar & Yathish
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
41 Shekar & Yathish
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
42 Shekar & Yathish
Who needs to file returns
under GST?
Return
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 10th of next month
15th of next month
20th of next month
By 31st December of next FY
Assesee
43 Shekar & Yathish
Accounting Codes
Turnover of preceding FY
Above 5 crores 1.5 crores- 5crores Below 1.5 crores
4 digit HSN and SAC Description of goods/services 2 digit HSN and SAC
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:
44 Shekar & Yathish
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?
45 Shekar & Yathish
GSTR-1 : 13 TABLES DETAILS OF OUTWARD
SUPPLIES/SALES
Table No Description
1 – 3 Basic Information
4 B2B Invoices
5 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) Consolidated statement of Advances received/ advance adjusted
11(2) 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.
Table 4 – B2B
Table 5 – B2C L
Table 6 – Zero Rated
Table 7 – B2C S
Table 8: Nil rated, Exempted and Non GST outward supplies
No
Description NIL Rate Supplies
Exempted
Non-GST Supplies
8A
Inter-State supplies to registered persons
8B
Intra-State supplies to registered persons
8C
Inter-State supplies to unregistered persons
8D
Intra-State supplies to unregistered persons
Table 9 – Amendments {4,5,6 + Dr/Cr Note}
Table 10 – Amendments to Table 7
Table 11 - Advances { Received / Adjusted }
Table 12 – HSN Summary
Table 13: Documents issued during the tax period Sr.
no. Nature of Document
Sr. no. Total no. Cancelled Net issued
From To
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
Table 13: Documents issued during the tax period
Sr no.
Nature of Document Sr no. Total no.
Cancelled Net issued
From
To
7 Payment Voucher
8 Refund voucher
9 Delivery Challan for Job work
10 Delivery Challan for Supply on approval
11 Delivery Challan in case of liquid gas
12 Delivery Challan in cases other than by way of supply
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
59 Shekar & Yathish
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?
60 Shekar & Yathish
Annual Return
• Registered taxable person other than ISD, compounding
taxpayer and TDS assesses
• To be filed electronically on or before 31st 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
61 Shekar & Yathish
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??
62 Shekar & Yathish
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.
63 Shekar & Yathish
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.
64 Shekar & Yathish
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
65 Shekar & Yathish
E Way Bill
• Required only when value > 50000
• 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
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
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
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
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:
70 Shekar & Yathish
TAX INVOICE
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
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;
71 Shekar & Yathish
TAX INVOICE
Conntinued….
• 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.
72 Shekar & Yathish
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
73 Shekar & Yathish
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.
74 Shekar & Yathish
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
75 Shekar & Yathish
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
Whichever is Earlier
76 Shekar & Yathish
TAX INVOICE
a) before at the time of supply takes place
b) Six months from the date of removal
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
BUT
77 Shekar & Yathish
TAX INVOICE
a) before or after the provision of service
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
• 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.
78 Shekar & Yathish
TAX INVOICE
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
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
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
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
Credit Note
Credit Note is to be issued within:
Whichever is earlier
Shekar & Yathish 83
30th day of September following the end of the Financial Year in which supply was made
Date of filing of relevant annual return
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
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 un-
registered;
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
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
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
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. Receipt
iii. Supply
iv. 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
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
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
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
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
Transitional Provisions
Shekar & Yathish 93
Flow of the session
• Why Transition?
• Process of Migration
• Transfer of Credits to GST Returns
• Miscellaneous Transition transactions
Shekar & Yathish 94
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
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
How to take Credits into GST
Return
Balance of Credit under Earlier Law
Under GST
Excise Shall be carried forward as CGST
Service Tax Shall be carried forward as CGST
VAT Shall be carried forward as SGST
Shekar & Yathish 97
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
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, asset-wise –
– Amount of Credit availed under earlier law
– Balance remaining un-utilized
Shekar & Yathish 99
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
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
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
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
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
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
Running Contracts
• Contracts entered Pre-GST
• Activity is happening during GST
• GST would only apply!
Shekar & Yathish 106
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
Action plan
• 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
Immediate
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
Before 1-7-2017
