Goods and Services Tax

Goods and Services Tax – GST – By: – Ravi Kumar Somani – Dated:- 22-12-2016 – One of the most complex areas of the tax levied by the Centre and the States is works contract and sale of property. Currently, such transactions are broken into three parts – the value of goods and materials, value of services and value of land. The States apply VAT to the goods portion and the Centre taxes the services portion, with no explicit tax on the transaction value of land. The State also collects stamp duty and registration charges for the registration of property. Each authority taxes on aspects and valuation independent of the others. More than 200% of the value is being taxed in some States which is no fair. Real estate transactions unfortunately are subject to manipulation and undervaluation in most parts of India. This area has seen extensive litigation and many borderline, illogical reasoning has bene accepted by the tax authorities on the logic that some tax is being collected. Construction

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nufacture, sale or service etc. There will be only one concept i.e. Supply . All the supplies will be categorized as Supply of goods or Supply of Services or composite supplies (multiple supplies). Construction activities will be works contract which is being categorized as Services . All builders and developers in India will be collecting and paying CGST and SGST (i.e. Central GST and State GST. The place of supply of the service is the location of the immovable property. Recently, CBEC has issued a revised updated Model GST Law – Nov 2016 wherein the older version of the draft issued in June 2016 has been partially revised. This article discusses the nuances of revised GST from the point of view of the Real-Estate sector also bringing out the impact that will be caused in this sector. Presently builders/developers are paying following indirect taxes: Service tax (ST) on services either to provider or on reverse/ joint charge (sub contractors, manpower supply etc); Value added tax (VA

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rought under the tax net in the GST regime. Therefore, if any long term contract is entered in the current tax regime now but if GST is implemented, then the same would be taxable under the strictures of the GST law therefore, It is important to factor the GST impact while arriving at the price of the contract and the burden of the taxes must be clearly reflected in the contract to avoid any complications at a later date. Expected Rate of Tax: Recently, the GST council has agreed upon the 5 rate structure for levying tax on various goods and services i.e. 1%, 5%, 12%, 18% and 28%. It is expected that the rate of GST that may be applicable on this sector would be mostly 12%. There may not be any further abatement/ composition on this rate. Although this rate will be little on the higher side as compared to current tax rates which is between 6% to 10%. Although such high rate could have an adverse impact on this sector, however this impact could largely get reduced due to ease in credits

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ed by way of issuing a notification during the GST regime. Unclear provisions in this context could lead to large scale disputes. Requirement of completion certificate: Similar to provisions in service tax, GST is said to be levied if amount is received prior to completion certificate and there would be no GST if the entire amount is received after the completion certificate. Further, it is also stated that even if completion certificate is not received, GST may not be levied after the first occupancy of the premises. This would provide relief to builders who for various reasons were unable to obtain the completion certificate from the authorities and as a consequence were denied the exemption from service tax. Treatment in case of SEZ/ EOU s: There is no clarity in the model GST law as to continuity of the exemptions in respect of EOU s. However, as far as units operating in the Special Economic Zone are concerned, it is explicitly stated that same will be on par with the exports and

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n though the project is for a very small period or for a small value. Although, this scenario is in existent in the current law for the state taxes but the same will now be done even for the central taxes. High Compliance burden: Compliance burden will be very high in the GST regime as one has to file 37 Returns in one financial year for each registration. Further, returns filed will be matched online with the support of the IT infrastructure with the returns of the vendors/ customers. In case taxes are not paid by the vendors or if the returns are not filed by the vendors, then the credit of such taxes is denied to the customers. Therefore, timely payment of taxes, filing of returns needs to be ensured in the GST regime. Transitional Credits: To transfer the existing credits in the GST regime, condition has been kept that such credit must have been admissible in the GST regime. Therefore, builders should be able to transfer the following credits to the GST regime: Credit of Service Ta

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ence of duty/ tax paying documents Credit of CST: The same cannot be availed based on the stock availability as on the appointed day. Entry Tax: Credit of same can be availed subject to possession of appropriate documents for the same in states where such set off is permissible. Anti-Profiteering Measures: Since a builder will be able to take the credit of goods lying in stock, the tax cost would decrease. This additional benefit accruing to the builders is expected to be passed on to the end consumer by way of reduction in prices etc. A separate authority will be formed in the GST regime to monitor the non-compliance of the anti-profiteering matters which could have an adverse impact on the entire construction industry whose pricing is more market dependent than other factors. Therefore, it is imperative for the builders to establish passing of the GST benefit to its consumers. In these times of falling prices this may not be challenge though. Time of Supply in GST: Currently, many bu

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ial rate if applicable could be a cause of concern. Valuation complexities: Valuation of the services would be at the transaction value. However, valuation with the related parties/ between the group companies needs to be properly dealt with and must be kept at the arms length price to avoid unnecessary departmental intrusion. Good IT Infrastructure: In GST regime, businesses have to move from the manual environment to computerized environment. Only an efficient IT infrastructure and its best usage can help businesses meet the high compliance needs of the GST. If IT infrastructure is not optimally utilized, then it would be challenging for any business including real-estate sector to function efficiently in the GST regime. Further, in the computerized environment, physical interaction with the department officials would reduce substantially. ERP must be customized to make it capable to meet needs of the business as well as comply with GST. Conclusion: The implementation of GST is possi

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 22-12-2016 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN DEFINITION OF CAPITAL GOODS UNDER REVISED GST LAW:- The definition of capital goods has undergone a substantial change in the revised GST Law. The definition of capital goods under revised GST Law is given under section 2(19) which states that capital goods means goods, the value of which is capitalised in the books of accounts of the person claiming the credit and which are used or intended to be used in the course or furtherance of business. As contrast to the above definition, the definition of capital goods under earlier GST law was similar to that given under Cenvat Credit Rules, 2004. The earlier definition was very sp

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situations:- The provisions regarding payment of amount on supply of used capital goods will not apply for such goods. In case of supply of capital goods or plant and machinery on which input tax credit has been taken, the registered taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery reduced by percentage points as prescribed or transaction value of capital goods whichever is higher. There is different time period specified for job work of inputs and capital goods. In case of job work of inputs, the time limit for receipt of goods by the principal is specified as one year while in case of job work of capital goods, the time limit for receipt of capital goods by the princi

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Goods and Services Tax – GST – By: – CA Akash Phophalia – Dated:- 21-12-2016 Last Replied Date:- 22-12-2016 – Introduction Tax credit is the mechanism which ensured avoidance of cascading effect. Principally cascading means paying tax on tax. Presently an assessee pays excise duty and thereafter pays sales tax in the form of vat on the said excise duty. This is an example of cascading effect. However, when it is required to pay sales tax then assessee is eligible to avail of set off of the tax already paid by it in the form of sales tax while procuring raw materials or inputs or goods in trade. Same concept is applicable with the excise duty and service tax. But inter-credit of sales tax and excise duty is not available presently. However, inter set off of credit between excise duty and service tax is available to certain extent. GST aims at bringing all the taxes viz service tax, excise duty and sales tax at par and ensure that the set off taxes is available to assesses at all the ti

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received, (b) two-third of the total input tax, including the credit availed in the first financial year, in the financial year immediately succeeding the year referred to in clause (a) in which the said goods are received, and (c) the balance of the amount of credit in any subsequent financial year. (2) Notwithstanding anything contained in this section, but subject to the provisions of section 36, no registered taxable person shall be entitled to the credit of any input tax in respect of any supply of goods and/or services to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other taxpaying document(s) as may be prescribed; (b) he has received the goods and/or services; (c) the tax charged in respect of such supply has been actually paid to the account of the appropriate Government, either in cash or through utilization of input tax credit admissible in respect of the said supply; and (d) he has furnished the

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goods or otherwise. (3) Where the registered taxable person has claimed depreciation on the tax component of the cost of capital goods under the provisions of the Income Tax Act, 1961(43 of 1961), the input tax credit shall not be allowed on the said tax component. (4) A taxable person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services after furnishing of the return under section 34 for the month of September following the end of financial year to which such invoice or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier. Analysis of the Section 16 1. Every registered taxable person shall be entitled to take input tax credit here in after referred to as ITC. It means in order to avail of input tax credit following are essentialities:- A person should be taxable person or in other words he should not be exempted under GST . Secondly the person should be a registe

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t on such goods shall be allowed as follows: Year Cumulative credit that can be claimed 2017-18 Upto 30,000/- 2018-19 Upto 60,000/- 2019-20 Upto 90,000/- 4.Further, in order to claim input tax credit following conditions are required to be fulfilled cumulatively:- The registered taxable person should be in possession of tax invoice, debit note, other tax-paying document. He should have received goods and/or services. This condition is to ensure that ITC shall not be allowed on the basis of bogus invoice or documents. Further, for this condition it shall be deemed that the taxable person has received goods when goods are sent to any other person on his direction, whether as an agent or otherwise, before or during the movement of goods, either by way of transfer of documents of title to goods or otherwise. Let us understand this with the help of an illustration. Mr. X purchased goods from Mr.Y and paid tax of ₹ 10,000. But Mr. X directs Mr. Y to send goods to Mr.Z ,ultimate consume

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on 7th April 2017 in respect to the entire lot. He will not be eligible to avail of input tax credit proportionately on partial receipt of goods. Condition applicable to services – There is a special provision in respect of services. This is not applicable to goods. The provision states that if the recipient of services fails to pay to the supplier of services the value of service and tax thereon within a period of 3 months from the date of invoice then ITC availed of by the recipient in respect to the said extent of value and tax thereon shall be added to his output tax liability and recovered along with interest. Where depreciation is claimed on the tax component under the provisions of the Income Tax Act 1961, then input tax credit shall not be allowed on the said tax component. This is to avoid double benefit of the single amount. Lastly, input tax credit shall not be allowed in respect of any invoice or debit note for supply of goods or services after furnishing of the return for

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 21-12-2016 – NEW CONCEPTS OF SUPPLY IN REVISED GST LAW:- The revised GST Law introduces three new concepts of supply which are discussed in this update. COMPOSITE SUPPLY:- Section 2(27) defines this term as composite supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustration given in Revised GST Law: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and

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e supply in GST regime is similar to the concept of bundled services under Service Tax Laws. MIXED SUPPLY:- Section 2(66) defines this term as mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration given in Revised GST Law: A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drink and fruit juices when supplied for a single price is a mixed supply. Each of these items can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately. This is e

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shall be treated as supply of that particular supply which attracts the highest rate of tax. The above provisions will definitely create disputes and litigation as whether the supply is composite or mixed will be dependent on facts and circumstances of a particular case. Moreover, the revenue department will consider a supply as composite or mixed according to the highest tax criteria. It was hoped that the GST regime would dispense with the classification disputes and lead to lesser litigation but introduction of above concepts will definitely ignite litigation. PRINCIPAL SUPPLY:- Section 2(78) defines this term as principal supply means the supply of goods or services which constitutes the predominant element of a composite supply and to

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 20-12-2016 – Scope of aggregate turnover [Section 2(6)] As per section 2(6) of the Model GST Act, 'aggregate turnover' shall be total of the following amounts or sums in relation to a person carrying on business, i.e., aggregate of the following- Value of all taxable supplies of goods and services Value of exempt supplies of goods and services Value of all goods and services exported Value of inter-State supplies However, aforementioned value of aggregate turnover would exclude taxes, if any, charged under the CGST Act, IGST Act and SGST Act. It will also not include the value of inward supply on which tax is charged on reverse charge basis and value of inward suppli

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; 0.60 lakhs IGST/CGST/SGST paid ₹ 0.20 lakhs Aggregate turnover ₹ 4.00+5.00+0.7+0.6 = ₹ 10.30 lakhs. As per revised model law, value of non-taxable supply shall not be considered while calculating aggregate turnover as it is not provided in definition of aggregate turnover. Relevance of person having the same PAN Person having the same PAN means all the business entities of a person across India having the same Permanent Account Number (PAN) in Income Tax. For example, if a person is having, say 10 branch offices in different parts of a country under a same PAN filing single income tax return, his turnover for all such offices shall be aggregated for the purpose of aggregate turnover under GST. Exclusion from aggregate tu

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; in terms of section 55 (i.e., Special Procedure for Removal of goods for Certain Purposes) of model GST Law. The value of such goods shall not be included in the aggregate turnover of the registered job worker. Aggregate turnover under GST v. service taxation Aggregate turnover under GST regime includes value of all taxable supplies, exempt supplies, export of goods and inter-State supplies excluding taxes and turnover under reverse charge and inward supplies. While, in service tax, aggregate value means the sum total of value of taxable services charged in the first consecutive invoices issued during a financial year but does not include value charged in invoices issued towards such services which are exempt from whole of service tax lev

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 20-12-2016 – It is important to understand provision of GST law that when the registration is required like at what value of turnover , kind of person covered for registration, what are the situation where registration is required without the threshold limit means after the occurring of particular transaction or transaction by particular person. How the amendment in the registration could be effected and cancellation of the same. For applying of limit of ₹ 20 lacs or 10 lacs as per Schedule -V , one need to understand the definition of Aggregate Turnover provided in Section -2[6] of Revised MGL. Aggregate Turnover means aggregate value of all taxable supplies, exempt supplies, export of goods and or services and interstate supplies of a person having the same PAN , to be computed on all India basis and exclude taxes , if any, charged under CGST Act, SGST Act and IGST Act, as the case may be. Provision related to regi

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necessary. Person who does not fall under Schedule -V , may apply for registration voluntarily. Person having Permanent Account Number in Income Tax Act,1961 shall be eligible for registration as aforesaid. Person who is required to deduct tax u/s 46 will required to have TAN for the registration. Non resident taxable person can take registration under the law on the basis of other documents as may be prescribed. Any specialized agency like United Nation Organization and Multilateral Financial Institution, Organization notified under the United Nations ( Privilege and Immunity ) Act ,1947, Consulate or embassy of Foreign countries or any other person or class of person as notified shall obtain Unique Identification Number instead of regular number as may be prescribed including refund of taxes for the good and services received by them. Certificate of registration shall be issued in prescribed form with effective date. Registration or UIN shall be deemed to be granted with in such per

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rovision for Casual Taxable Person and Non Resident Taxable Person [ Sec. 24] Certificate issue to above both category shall be valid for days mentioned in the application or 90 days from the effective date of registration. which ever is earlier. But on request this period may be further extended for 90 days. Such taxable person at the time of seeking registration u/s 23 , make advance deposit of tax equivalent to the estimated liability of such person for the period of registration or extended registration. Amount deposited in 2 above shall be credited to his electronic cash ledger and shall be utilized in the manner specified in Section- 44. Amendment of Registration [ Sec.25] Every RTP shall inform the proper officer of any changes for information furnished at the time of registration or later on within the prescribed time. Proper Officer may approve or reject the information as submitted within the prescribed time. Proper officer will not reject the application unless reasonable op

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pression of fact, the PO may cancel the registration with retrospective effect subject to the provision of Section 37. The liability to pay tax of RTP in situation of such cancellation shall not be effected Every RTP whose registration is cancelled, pay liability by way of debit in electronic cash ledger, equivalent to the credit of input tax in respect of input held in stock of raw material, semi finished or finished goods on the day immediately proceeding to such cancellation or the output tax payable which ever is higher , as may be prescribed. In case of capital goods, taxable person shall pay an amount equal to the input taken on such goods reduced by the percentage point as prescribed or the tax transaction value of such goods which ever is higher. Revocation of Cancellation [ Sec. 27 ] In case of cancellation of registration by PO at his own motion, RTP may apply for revocation of cancellation within 30 days from the date of service of cancellation order. The PO after looking at

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registration like centralized registration. Ans; No , there is no concept of centralized registration in GST. In each State where the business is operating , person has to take registration in each State as per Sec.23[1]. Q-4 Weather the registration granted to one person is permanent? Ans; yes, unless surrendered or cancelled. Q-5 What is responsibility of taxable person while supplying to UN bodies? Ans; Taxable person shall write UIN on invoice and supply as registered taxable person.[ B2B] and the invoice will be uploaded by supplier. Q-6 Is it necessary for Govt. organization to get registration? Ans; UIN will be given by each State to Govt. Organization / PSU. Not making any outward supply of GST goods but making interstate purchases. Thus not liable to obtain GST registration . Q-7 Who is casual person? Ans; Casual taxable person has been defined under section 2[20] of Revised MGL. It means person occasionally undertake transaction involving supplies of goods or services in the

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Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST) – Goods and Services Tax – GST – Dated:- 19-12-2016 – Download Pdf File – News – Press release

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COMPARATIVE ANALYSIS OF REFUND OF TAX IN REVISED GST LAW-PART-II:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 19-12-2016 Last Replied Date:- 20-12-2016 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN:- COMPARATIVE ANALYSIS OF REFUND OF TAX IN REVISED GST LAW-PART-II:- We discuss some other provisions pertaining to refund of tax in revised GST Law as follows:- A new sub-section 13 has been added in section 48 which states that refund of advance tax deposited by casual or non-resident taxable person shall not be allowed unless they have furnished all returns during their period of registration. Hence, refund of advance tax will be admissible only on filing of returns. New clauses have been inserted in the meaning of relevant da

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refund mechanism for return of goods in factory premises for repairing or reconditioning purpose but the old GST Law specifically mentioned relevant date for filing refund claim in such cases. However, it appears that the government realised the redundancy of the provision and has deleted the same. A new section 49 has been added for refund of taxes to any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and organisation notified under the United Nations (Privileges and Immunities) Act, 1947.It is possible that the conditions and restrictions may be specified separately for granting refund in such cases. Presently, there is You may visit us at www.capradeepjain.com https://www.facebook.com/GSTT

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COMPARATIVE ANALYSIS OF REFUND OF TAX IN REVISED GST LAW-PART-I:- Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 19-12-2016 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN COMPARATIVE ANALYSIS OF REFUND OF TAX IN REVISED GST LAW-PART-I:- Earlier old GST Law, the limitation of two years for filing refund claim was not applicable for amount paid under protest. This provision has been deleted in the revised GST Law thereby meaning that there will be no mechanism for paying tax under protest. A new provision for refund of tax by specialised agency of United Nations Organisation or any Multilateral Financial Institution or Embassy of foreign countries has been inserted which provides that such persons shall be entitled to refund of ta

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t. But, in revised GST Law, refund of unutilised input tax credit shall be allowed in cases of exports including zero rated supplies, in case of inverted duty structure but not in case of nil rated of fully exempt supplies. A new proviso has also been inserted to clarify that the refund of unutilised input tax credit shall not be allowed if the supplier of goods or services claims refund of output tax paid under IGST Act, 2016. This implies that the refund of unutilised credit will be allowed only in cases where the export is done under bond. If the export is done under rebate claim then the refund of unutilised credit will not be allowed. There is also change in provision regarding grant of refund claim on provisional basis. As per old GST

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if it is proved that the incidence of duty has not been passed on to other person. The concept of unjust enrichment is not applicable in certain situations like refund of tax on goods or services exported, refund of unutilised input tax credit etc. Now, a new clause has been added wherein refund of tax paid on a supply which is not provided, either wholly or partially and for which invoice has not been issued will also be sanctioned to the supplier and the principle of unjust enrichment would not apply in such cases. This provision is also beneficial to the assessees claiming refund of tax paid on supply which is cancelled or partially provided. We will discuss some other amendments made in the provisions relating to refund of tax in revis

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 17-12-2016 Last Replied Date:- 18-12-2016 – DAILY DOSE OF UPDATE BY CA PRADEEP JAIN COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-II:- This update seeks to highlight the changes made in the Revised GST Law as compared to the old GST Draft with respect to provisions relating to input tax credit as follows:- A list of exclusions has been provided wherein it is specified that the credit shall not be available for motor vehicles and other conveyances except when used for making taxable supplies like supply of such conveyances, transportation of passengers, imparting training or driving or for transportation of goods. There is no change in the above provision with the

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n term supply of similar nature . Suppose, a hotel take service of outward catering for marriage function of a client (Mandap Keeper service). Whether it will be treated as outward taxable supply of similar nature. Same will be the case of event management company. The credit of rent-a cab, life insurance, health insurance will also not be available unless Government notifies that such services are obligatory for an employer to provide to its employees under any law for the time being in force. The admissibility of credit when such services are availed under obligation is a welcome step and was not there in earlier law. With respect to availability of credit in special circumstances, where a registered person ceases to pay tax under composi

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an amount equal to input tax credit on capital goods reduced by the percentage points or tax on transaction value whichever is higher, in case of supply of capital goods or plant or machinery on which input tax credit has been taken. A new proviso has been added to provide that in case of refractory bricks, moulds and dies, jigs and fixtures supplied as scrap, taxable person may pay tax on transaction value of such goods. But the current Cenvat credit Rules provided for duty payment on value of scrap of all capital goods. But as per these new proposed provisions in revised draft GST Law, the duty is to be paid on such capital goods only even if they are scrap only. You may visit us at www.capradeepjain.com – Reply By Ganeshan Kalyani – The

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 17-12-2016 Last Replied Date:- 20-12-2016 – Tax Invoice by Input Service Distributor (ISD) Under section 17 of the model GST law, an Input Service Distributor (ISD) has to issue a prescribed document to distribute the credit. As per explanation to section 23 of model GST law dealing with tax invoice, it has been clarified that the expression tax invoice shall be deemed to include a document issued by an Input Service Distributor under section 17. Thus, an ISD will issue a document which will deemed to be a tax invoice. According to Rule 5(1) of draft GST Invoice Rules, tax invoice issued by an Input Service Distributor(ISD) shall contain the following details: name, address and GSTIN of the Input Service Distributor(ISD), a consecutive serial number containing only alphabets and/or numerals, unique for a financial year, date of its issue, following details: name, address, GSTIN of the supplier of services, the credit in

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red as tax invoice for supplies made by taxable person. Tax Invoice by Banking Company / Financial Institution / Non-banking Financial Company (NBFC) According to Rule 5(2) of draft GST Invoice Rules, where supplier of taxable service is a banking company or a financial institution including a non-banking financial company, such supplier shall issue a tax invoice or any other document in lieu thereof, by whatever name called, whether or not serially numbered, and whether or not containing the address of the recipient of taxable service but containing other information as prescribed under Rule 1 of draft GST Invoice Rules. Therefore, where the taxable person is banking company or a financial institution including a NBFC, issues documents containing prescribed particulars in lieu of tax invoice, then such documents shall be considered as tax invoice for supplies made by taxable person. Tax Invoice by Goods Transport Agency (GTA) According to Rule 5(3) of draft GST Invoice Rules, where su

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goods transported, details of place of origin and destination, GSTIN of the person liable for paying tax whether as consignor, consignee or goods transport agency, and other prescribed information. It should also contain other information as prescribed under Rule 1. Tax Invoice by Passenger Transportation Service Provider According to Rule 5(4) of draft GST Invoice Rules, where supplier of taxable service is supplying passenger transportation service, a tax invoice shall include ticket in any form, by whatever name called, and whether or not containing the address of the recipient of service, but containing other information as prescribed under Rule 1. Thus, passengers tickets can also be considered as a tax invoice. – Reply By Ganeshan Kalyani – The Reply = Nice article sir. Even in the current tax regime the ingredient that an invoice should contain in enumerated in the Act/Rules. But due to lack of knowledge or any other reason some dealers do not incorporate the basic details that

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credit of CGST as IGST and IGST as IGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States. (CGST ACT) (1) The Input Service Distributor may distribute, in such manner as may be prescribed, the credit of SGST as IGST, by way of issue of a prescribed document containing, inter alia, the amount of input tax credit being distributed or being reduced thereafter, where the Distributor and the recipient of credit are located in different States. (SGST ACT) Further, at the time of writing this article, old model GST law was in force. As per revised model GST law, section 28 deals with provision related to tax invoice. Thanks and Regards, Sanjay Kumawat – Reply By Sanjeev Swain – The Reply = Respected Sir,As the date of your article is mentioned as 17/12/2016 aganist the new law release date of 25th November, I have writ

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 16-12-2016 Last Replied Date:- 19-12-2016 – First of all, one need to understand the definition of Job work under Revised GST law. After that it will be easier to understand the provision relating to supply of goods to job worker. Goods either input or capital goods can be directly send to Job worker and supply of input can be directly make from job worker place subject to the following provisions provided in Section- 55 of the Revised GST Law. Definition as per Section – 2[61] of Revised MGL. job work means undertaking any treatment or process by a person on goods belonging to another registered taxable person and the expression job worker shall be construed accordingly It mea

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. Supply directly from there on payment of taxes within India or with or without payment of taxes for export as the case may be within the period stipulated above. Supply of goods from place of business of job worker within India with payment of taxes, with or without payment of taxes for export, as the may be. Provided the Principal declared the place of business of job worker his additional place of business. In the following cases the said provision shall not be applicable i] where the job worker is registered under Sec.23. ii] where the principal is supplying such goods as may be notified by commissioner in this behalf. The onus of prove for accountability of input and or capital goods shall be of Principal. Where the inputs sent for jo

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rker treated as supply of goods and liable to tax? No. supply of goods from RTP to job worker shall not be treated as supply of goods as per Sec. 43A. Whether the goods of principal directly supplied from Job worker s premises will be included in the turnover of Job worker? No. That will be added in the turnover of principal. What are the provision of taking ITC in respect of input/ capital goods sent to job worker? As per Section 20 of Revised MGL, Principal shall be entitled to take credit of input or capital goods. If the input or capital goods has not been received back within stipulated time of one year and three year respectively, ITC shall be paid. ITC can be claimed again as when the goods have been received. Are the provision of jo

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 16-12-2016 Last Replied Date:- 17-12-2016 – There is drastic change in the Capital Goods definition under Revised GST Law from GST Law. Under the GST law definition was very exhaustive though under the Revised GST law It is quite simple. Under GST law, Capital goods was defined under Section- 2(20) and Under CCR, 2004 the same was provided under Rule 2(a) and both the definition were almost same except some words here and there. But new definition under section 2(19) of Revised GST law is simple and rational. Now, We can go through all definition related to Input tax Credit under Revised GST Law to understand the input tax credit in detail. Definition of Capital Goods, Input and Input Services under revised GST Law Capital Goods -Sec. 2(19) Capital good means goods , the value of which is capitalized in the books of accounts of person claiming the credit which are used or intended to be used in the course or furtherance of

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penalty] and the said amount shall be credited to his ECL [electronic credit ledger]. Input tax credit for pipe line and telephone tower fixed to earth by foundation and structural support shall be available as follows: 1/3 in the first year when goods received 1/3 in the next year The balance in subsequent financial year No person can claim credit but subject to provision of sec. 36, except the following in possession:; Invoice or debit note Received the goods or services Tax charged on such supply has been paid to Government Person has filed the return u/s 34 Where the goods are received in installment or lots, ITC shall be available at the time receiving of final installment or lot. Recipient shall make the payment to supplier within three months from the date of invoice otherwise the ITC taken shall be added to the output tax liability with interest. Where the RTP has claimed depreciation as per Income Tax Act on cost of capital goods, ITC shall be denied. ITC shall not be allowed

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ove or take 50 of the eligible credit on input, capital goods and input services. E] Despite the provision of Sec. 16[1] and Section 18 [1][2][3][4] ITC shall not be available on the following; a] motor vehicle other conveyance except the following i] for making the following taxable supplies further supply of such vehicle or conveyance transporting of passenger imparting training on driving , flying ,navigating such vehicle or conveyance. ii] for transportation of goods b] supply of goods or service, namely Food and beverage, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, except when such inward supply of goods and services is used for output taxable supply of the same category of goods and services. Membership of club, health and fitness services Rent a cab, life insurance, health insurance Travel benefit extended to employee on vocation such as leave or home travel concession. C] work contract service when supply for construction of immovable prop

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under sec.9 , will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. Provided that credit on capital goods shall be reduced by percentage point as prescribed. Where an exempt supply of goods and services by RTP becomes taxable, will be entitle to claim ITC on input, semi finished and finished goods and capital goods on immediately proceeding the day on which he is liable to pay tax. Provided that credit on capital goods shall be reduced by percentage point as prescribed RTP can not claim input tax credit under the above said sub sections after the expiry of one year from the date of invoice. Where there is change in the constitution of RTP on account of sale, merger, demerger, amalgamation , lease or transfer of the business, in such cases RTP shall be allowed to transfer the unutilized input to the sale, merger, demerger, amalgamation , lease or transferred business. RTP if switches

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year from the date of sent out. ITC can be claimed even if the goods directly sent to job worker. One year shall be computed from the date of receipt of material by Job worker. If the goods have not been returned within the stipulated period the same shall be treated as supply to job worker from the date of goods sent out. Principal subject to such condition as prescribed, entitled to take credit of ITC on capital goods sent to job worker. Credit shall be valid if such goods have been received back within three years of being sent out. ITC can be taken even if the capital goods directly received by job worker. If the capital goods have not been returned within the stipulated period the same shall be treated as supply to job worker from the date of capital goods sent out. The aforesaid period of one year or three year shall not be applied in case of moulds, dies, jigs and fixture, or tools sent out to job worker for job work. Manner of distribution of credit by Input Service Distributo

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n distribute the ITC subject to the following : only on prescribed document containing the details as prescribed. The amount of credit distributed can not exceed the amount of credit ITC can be distributed only to that recipient eligible. Can be distributed to attributable recipient. If more than one recipient, it shall be on pro rata based on the turnover of the state, of the relevant period. Recipient should be operational in that relevant period. Manner of recovery of credit Distributed in excess [Sec-22] Where the ISD distribute any credit without following the provisions of Sec. 21 resulting in excess distribution of credit , the same shall be recovered from such recipient along with interest, and the provision of sec. 66 or 67 [demand and recovery] shall apply mutatis mutandis for such recovery. FAQ ON INPUT TAX CREDIT Q. Can GST paid on reverse charge be considered as input tax A. Yes. The definition of input tax include tax payable under Sec. 8(3) which is reverse charge. The c

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ately proceeding the date from which he becomes liable to pay tax. Q. Weather the principal is eligible to take input on input sent to job worker? A. Yes. As prescribed in sec. 20[1]. Q. What is the recovery mechanism for wrongly availed credit. A. As per Sec.19 , the same shall be recovered from RTP as per the provision. – Reply By JAIPRAKASH RUIA – The Reply = ONE Recipient shall make the payment to supplier within three months from the date of invoice otherwise the ITC taken shall be added to the output tax liability with interest. Payment of tax part of invoice or full invoice amount ? If full Invoice amount, than what about part payment or 10% retention/PBG is kept. TWO Is it not contradictory that again the Definition of Capital Goods made very vide by saying used or intended to be used in the course or furtherance of business . and restricted as under in other portion by saying Despite the provision of Sec. 16[1] and Section 18 [1][2][3][4] ITC shall not be available on the foll

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 16-12-2016 Last Replied Date:- 19-12-2016 – COMPARATIVE ANALYSIS OF CHANGES MADE IN INPUT TAX CREDIT- PART-I:- This update seeks to highlight the changes made in the Revised GST Law as compared to the old GST Draft with respect to provisions relating to input tax credit as follows:- A new proviso in section 16(1) specifying the manner of credit availment in case of pipelines and telecommunication tower fixed to Earth has been inserted which states that the input tax credit shall not exceed one third in the financial year in which said goods are received. The assessee can further avail upto two third of the total credit in the year succeeding the year of receipt and the balance cre

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tion 17(2) which pertains to credit availment provision for persons effecting taxable supplies and exempt supplies. The provision states that the registered taxable person shall be eligible for availing input tax credit as is attributable to taxable supplies including zero rated supplies made by him. The explanation further clarifies that exempt supplies shall include supplies on which recipient is liable to pay tax under reverse charge mechanism. This has the effect that credit will not be available for supplies for which tax is payable by recipient under reverse charge mechanism. A special provision for banking company or financial institution has been proposed which is in line with the present provisions of Rule 6 of the Cenvat Credit Ru

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n capital goods is denied only if they are exclusively used in exempted goods/services but in the proposed GST law, there are provisions for credit reversal even in case of capital goods partly used for taxable and exempt supplies. We will draw your attention on the remaining changes made in input tax credit provisions in the revised GST Law in our next update. – Reply By Ganeshan Kalyani – The Reply = The clause discussed in point 2 states that credit would be allowed only if the payment to the service provider. Does this indirectly implies that only if receiver of service does the payment of the value of service render to the service provider, the service provider shall deposit the tax so charged on the invoice . What if he has collected

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Goods and Services Tax – GST – Dated:- 15-12-2016 – New Delhi, Dec 15 (PTI) As the Narendra Modi government wages its biggest war on black money yet, Chief Economic Advisor Arvind Subramanian on Thursday pitched for including land and real estate under the GST regime to check money laundering and corruption. Subramanian, who for the finance ministry had authored a report on possible tax rates under the Goods and Services Tax (GST), suggested that the new indirect tax set-up should be clean with simple low rates and should include land and property as well as electricity. GST, which the government intends to roll out from April 1, 2017, is to subsume central excise, service tax and state VAT among other indirect levies on manufactured goods

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cing of black money. So, it is terribly important that land and real estate being part of the GST, he added. Subramanian said there is need to bring electricity charges that are not done by the states under GST. I think they should be part of GST and then the input credit can flow and make power more competitive. So, in terms of GST, clean, simple low rates, land, property part of it, power part of it also, will actually be not just important in itself but as a complement to bigger fight against black money and corruption that we embark on, he said. Subramanian had recommended a three-tier rate structure for GST, under which some essential goods were to be taxed at a lower rate of 12 per cent and so-called demerit goods such as luxury cars,

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Goods and Services Tax – GST – By: – NarendraKumar Thotamsetty – Dated:- 15-12-2016 Last Replied Date:- 11-2-2017 – GST Update: Whether GST migration is mandatory for all existing dealers having turnover is less than threshold limit 20L/10L? The 101 Constitutional Amendment of the Goods and Service Tax (GST) is only Constitution amendment with reference the Goods and Service Tax in the place of existing Indirect Tax Mechanism. The Final bill is yet be approved by the House of Parliament and respective State Legislature Assembly. In this regard the Government of India has initiated enrolment schedule for the GST and specified enrolment schedule as follows: States Start Date End Date Puducherry, Sikkim 08/11/2016 23/11/2016 Maharashtra, Goa,

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egistered under the State Commercial Tax Authority even if his turnover is less than the threshold limit and which is 20 Lakhs/10 Lakhs? My answer is Yes . Till the date only constitutional amendment has come into existence and the Final Bill is yet be approved the by House of Parliament and respective State Legislature Assembly. Till the time it is only a draft law. All the Commercial Tax dealers obligated to enrol for the GST migration. As per my understanding there is no Exemption as far as now. One may be covered under Reverse Charge Mechanism with reference to procurement of services and Un-Registered Dealer Purchases should come within the ambit of Goods and Service Tax. Hence they need to enrol for GST migration without fail. Submitt

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= Nice article . My question is if the law is only draft then whether the requirement of enrolment within the time limit prescribed by GSTN and not by the Statute would attract any kind of penalty . As you said that this is just provisional enrolment the procedure that the existing dealer has to carry out should also be lenient and not authoritative . Pls. share your view in this regard. – Reply By Chandravijay Shah – The Reply = Un-Registered Dealers should come within the ambit of GST and hence, they need to enrol for GST migration without fail. : Unregistered Dealers do not have TIN under the VAT Act and hence, they cannot get Enrolled, despite desire to do so. It is a Non-Starter for them.Please give your feedback ASAP. – Reply By CA.D

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 15-12-2016 – CHANGES IN SCHEDULE IV AND SCHEDULE V OF REVISED GST DRAFT LAW We have till now discussed the definition of supply along with provisions described in schedule I, schedule II and schedule III, and in this update, we will discuss the changes and consequences in schedule IV and V. Schedule IV:- In the previous GST Law, Schedule IV specified the activities or transactions in respect of which the Central Government, a State Government or any Local Authority shall not be regarded as a taxable person. However, in the revised GST Law, Schedule IV specified activities or transactions undertaken by the Central Government, State Government or any local authority which shall be treated neither as supply of goods nor supply of services. Although, the heading of the Schedule has been changed but it does not has significant impact with the only difference that earlier government was not considered as taxable person for certain

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me charges shall be exempt. The explanation was merely for clarification purpose and removing the same does not bring any sort of change. No other change has been made in the revised draft in context of this schedule and it has been kept identical to earlier law. Also it is worthwhile to mention that the provisions mentioned in these schedules are exactly parallel to current Service Tax Laws. SCHEDULE V:- In the previous GST draft law, the persons to be registered were specified in schedule III but in revised GST law, these have been transferred to schedule V. Changes made therein are discussed hereunder:- In the revised GST Draft Law, there is substantial relaxation in the threshold limit for getting registered under GST Law. In earlier GST draft law, the limit for registration was nine lakh rupees which has been increased to twenty lakh rupees. It is an appreciable step from Government s side. As already told by us in our earlier GST updates, this limit has been enhanced by GST counc

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or the special category states the limit is ten lakh rupees. The government in earlier GST draft had explicitly specified that for the NE states including Sikkim the registration limit shall be four lakh rupees, but in new GST draft law though the limit for special category states has been increased but it is nowhere mentioned that special category states shall be North Eastern states including Sikkim. Hence, in future there is a possibility that government may specify a new list of states for this threshold limit. In the list of persons who are required to get registered irrespective of the threshold limit following entries have been added:- Persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold specified under paragraph 1; Persons who are required to collect tax under 56, whether or not separately registered under the Act; Every person supplying online information and database access or retrieval services from a place outside India to a

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 15-12-2016 – CHANGES IN SCHEDULE III OF REVISED GST DRAFT LAW We have till now discussed the definition of supply along with provisions described in schedule I and schedule II, and in this update, we will discuss the changes and consequences in schedule III. In the previous GST draft law, the persons to be registered were specified in schedule III but in revised GST law, those activities and transactions which are neither supply of goods nor supply of services have been listed in schedule III. 1. In the first entry of new GST draft law, services provided by an employee to the employer in the course of or in relation to his employment is mentioned. This means that service provided

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nsidered as supply and no GST is leviable. It is worth observing that the earlier GST Draft did not incorporated such a provision. However, this provision is presently there under Service Tax Laws. Presently, definition of service excludes fees payable to a court or tribunal set up under a law for the time being in force. It appears that the Revised GST Law rectifies the anomaly of the old GST Draft. 3. In the new GST law, a new entry has been inserted whereby the functions or the services provided by any of the following will not be considered as supply:- (a) The functions performed by the Members of Parliament, Members of State Legislature, Members of Panchayats, Members of Municipalities and Members of other local authorities; (b) The du

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Report Card on GST Implementation; Government of India lost no time in implementing the GST so far; Discussions in GST Council have been very cordial and all decisions till now have been taken by consensus; Members of the Council are participating in the meetings with a very positive attitude and are working towards the roll-out of GST as per the deadline. – Goods and Services Tax – GST – Dated:- 14-12-2016 – Press Information Bureau Government of India Ministry of Finance 14-December-2016 18:21 IST As compared to the time taken in arriving at a consensus on the Constitutional Amendment Bill for GST, the subsequent events after the passing of the Bill indicate that the Government of India and the States have done remarkably well in taking a

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es including floor rates with bands of GST. Since notification of the GST Council on 12 September 2016, six meetings of the Council have been held in New Delhi. These meetings were held on 22-23 September, 2016; 30 September, 2016; 18-19 October, 2016; 3-4 November, 2016; 2-3December, 2016 and 11 December, 2016. During these meetings, number of important decisions have been taken paving way for roll out of GST with effect from 1st April 2017. Some of the important decisions taken in the last six Meetings of the GST Council are: i. The threshold limit for exemption from levy of GST would be ₹ 20 lakhs for normal States (Rs.10 lakhs for the Special Category States enumerated in Article 279A of the Constitution). ii. The threshold for av

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decision to continue with any incentive scheme shall be with the concerned State or Central Government. In case any State Government or Central Government decides to continue any existing exemption/incentive scheme, it will be administered by way of a reimbursement mechanism. vi. Bands of rates of goods under GST shall be 5%, 12%, 18% and 28% and in addition there would be a category of exempt goods. Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States. The GST Council in its 1st meeting decided that GST would be rolled-out by 1 April 2017. Accordingly, various timelines had been decided for various aspe

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Goods and Services Tax – Started By: – SANDESH SHINDE – Dated:- 14-12-2016 Last Replied Date:- 14-12-2016 – Dear Sir,Request you to please provide some clarity on some queries related to GST. 1 Stock needs to be minimum exit March'17. WHY?? 2 Why should we bill in Feb and Mar to do stocking if landing prices are to come down due to reducing in Tax, will company compensate on this?? 3 Will there be a price parity in market, as inflitration will stop from other markets?? 4 Will Tax adjustments stop after GST or will they continue as this effects operating prices?? 5 Ambigiuity regarding Levied TAX structure on Different Products. 6 Sale & Purchase A/c Recociliations & its Differentiations. 7 Stocks Maintenance Criteria 8 What wil

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Goods and Services Tax – GST – By: – Ashish Mittal – Dated:- 14-12-2016 Last Replied Date:- 16-12-2016 – Composition Scheme Comparison Chart Comparison of Provision Regarding Composition Scheme under Current U.P VAT Act,2008 VS Model GST Regime S.No. Basis Under UP Act' 2008 Model GST Law For Works Contractor For Others 1 Governing Section Section-6-Composition of tax liability Section-9-Composition Levy 2 Eligibility Any Person fulfilling T/o criteria (other than person engaged in Works Contract i.e. on works contractor no T/o Limit is applicable) Person fulfilling T/O limit other than 1. Engaged in supply of services 2. Person engaged in interstate supply 3. Person making Non-Taxable Supply 4. E-Commerce Operator 5. All the taxable person has common PAN shall opt the scheme simultaneously Spl. Point: T/o Limit Applicable in case of Work Contractor unlike in UP VAT Act. Under Current UP VAT: Eligible (No T/o Limit) Under GST: Eligible (Subject to T/o Limit) Under Current UP VAT:

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er-2.50% (Min.) Others-1% (Min.) [Not less than 2.5%/1% as per Section-9 actual rate still to be specified] Actual rate still to be notified but an floor rate being specified in the section itself 7 Penal Provision – If assessee not falling in the above Scheme and opts for the same the proper officer may after giving opportunity of being heard recover tax, interest and penalty of equal amount [As per Section 9(4)]thereon as recovery under GST Officer may after applying principles of Natural Justice initiate penal action as specified 8 TRANSITIONAL PROVISIONS – 8.1. Assessee shifting from Normal Tax Regime under Earlier law to Composition Scheme under GST N.A Allowed but the ITC of stock lying in the stock shall be paid by him before switching in composition scheme in GST May apply if opted for composition scheme in GST Law 8.2. Assessee shifting from Composition Scheme under Earlier law to Normal Tax Regime under GST N.A Allowed and the ITC of stock(incl. input, semi-finished goods, a

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e a boon to the real estate sector or would be a challenge . Pls share your views in this regard. – Reply By Ashish Mittal – The Reply = Hello Ganeshan Ji, With regards to your Query, In context of real estates sector, taking about the inputs which are purchased by them as defined in Rule 2(K) CCR ' 2004, Presently no CCR is available for the same due to availment of abatement as provided by N/N-26/2012 provided by CG in lieu of power vested under Sec. 93 of F.A' 1994, wherein the real estate sector may apply abated rate @30% of taxable value but after fulfilling the condition that no CCR of inputs shall be availed by them. Now in Revised MGL also no ITC of inputs have been provided till date.[As per Section 17(4)(d) of Revised MGL] Also re-instated herewith for your ready reference. Section 17 (4) Notwithstanding anything contained in sub-section (1) of section 16 and subsection (1), (2), (3) and (4) of section 18, input tax credit shall not be available in respect of the foll

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 14-12-2016 – DAILY DOSE OF GST UPDATE BY CA PRADEEP JAIN:- CHANGES MADE IN SCHEDULE-II OF REVISED GST LAW:- Continuing the series of updates on the revised GST draft law, we had discussed on changes made in schedule I after amendments in the definition of Supply and the consequences of the same. Today we will discuss the changes in schedule II and implications of the same. Schedule II prescribes such transactions which will be deemed to be supply of goods and services. There is not much change in this schedule. But it is worth noting that as per our previous discussion on supply and schedule I, the transactions without consideration have been removed from the list. But the schedul

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etained will also be termed as supply and GST was payable on the same. In the revised draft, this entry was removed from the schedule I due to which it seemed that no GST shall be payable on it. But again this entry has been retained in the schedule II resulting in taxability on this transaction. The entry 4(c) states that if a person ceases to be a taxable person, then retention of business assets will be termed as supply. This rule will be subject to the fact that the business is transferred as a going concern or a personal representative runs the business. In remaining all cases, such retention will be supply and GST will be payable on the same. Another change made in the schedule II is that entry 4(3) of the previous draft has been dele

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Goods and Services Tax – GST – By: – Pradeep Jain – Dated:- 14-12-2016 – As you are aware of the fact that revised draft GST law is published by the Government. Many changes have been made in the revised draft GST law in comparison to earlier draft GST law. If we compare the old draft GST law with the new revised draft GST law then we can study the changes which have been made and their impact on the trade and industry. To start with we are discussing about the definition of supply given under revised GST draft law. The definition of supply given under section 3(a) of draft GST law. The first part of definition of revised GST law is inclusive as well as is similarly worded as given under earlier draft GST law. Further import of service for

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sideration then only it will be covered under GST. Second entry in schedule I is a new entry wherein supply of goods or services to related person without consideration will be termed as supply . Also, if you have separate registration under section 10 then also supply without consideration will be termed as supply . GST provides that every person has to take separate registration in each state. Hence, this entry intends to cover those transaction between separate registration though they are same person. The supply will be without consideration as he is same legal person but since separate registration is taken, hence it will be termed as deemed supply and GST is payable. Further supply between principal and agent and agent and principal w

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 14-12-2016 Last Replied Date:- 19-12-2016 – Supplementary Tax Invoice Supplementary tax invoice has not been defined under Model GST law. Supplementary tax invoice has to be issued by taxable person in case where any deficiency is found in a tax invoice already issued by a taxable person. Dictionary meaning of the term supplementary is added to complete or make up a deficiency . Thus, supplementary tax invoice is to be issued where any deficiency is found in a tax invoice issued already to supplement / remove such deficiency. Details required to be shown According to Rule 4 of draft GST Invoice Rules, a supplementary tax invoice and / or credit note or debit note shall conta

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ative. Input Tax Credit As per section 16(1) of Model GST law, no registered taxable person shall be entitled to the credit of any input tax in respect of any supply of goods and/or services to him unless he is in possession of tax invoice, debit note, supplementary invoice or such other taxpaying document as may be prescribed, issued by a supplier registered under the CGST/SGST or the IGST Act. However, a taxable person who has received supplies from a supplier who is paying tax under composition levy scheme or supplying non-taxable goods and/or services cannot take input tax credit on the basis of a bill of supply. Revised invoice 'Revised invoice' has not been defined under Model GST law. Revised invoice may be issued by taxable

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d invoice is the period starting from the effective date of registration till the date of issuance of certificate of registration. Therefore, a registered taxable person cannot issue a revised invoice against the invoice issued by him after the date of issuance of certificate of registration. Difference between a revised invoice and a supplementary invoice Difference between a revised invoice and a supplementary invoice can be enumerated as follows: Particulars Revised Invoice Supplementary Invoice Meaning Revised invoice may be issued by taxable person in relation to any invoice already issued by him. Supplementary tax invoice has to be issued by taxable person in case where any deficiency is found in a tax invoice already issued by a taxa

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VAT – Delhi – JCTT/Policy/2016/751-769 – Dated:- 14-12-2016 – DEPARTMENT OF TRADE AND TAXES VYAPAR BHAWAN, I.P.ESTATE, NEW DELHI-110002 No. JCTT/Policy/2016/751-769 Dated 14.12.2016 To All dealers of Delhi. Subject – Communication of the provisional Identification Number and Password to dealers registered with VAT department for migration to GST from 16th December, 2016 to 31st December, 2016 As you are aware that Goods and Services Tax is to be implemented from 1st April 2017 and we understand that as a Taxpayer you would like to continue your business operations under GST regime. Goods and Services Tax Network (GSTN) has been assigned the task of collection of data of existing taxpayers under indirect taxes for their smooth transition fr

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to enter the username and password as provided in the Table by the State VAT Authority. Step 2 : Enter Mobile Number and Email ID of the Authorized Signatory of the business entity. All future correspondence from the GST Portal will be sent on this registered Mobile Number and Email ID. Step 3: Different One Time Passwords will be sent on Mobile and Email details entered. Enter the OTP sent on Mobile and Email as provide. Step 4 : Enter information and upload scanned images as mentioned in pre-Registration Form. Please read the User Guide and FAQ at https://www.gst.gov.in.help/faq before proceedings ahead. Please also see the video tutorial at http://tutorial .gst.gov.in/video also for learning for GST registration for existing dealers. In

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