Goods and Services Tax – GST – By: – Bimal jain – Dated:- 14-3-2019 – A round up of GST amendment in Credit & Debit Notes viz-a-viz post supply discounts Background: The Interim Budget 2019 did not propose any changes with respect to Indirect Tax. In as much as GST is concerned, the GST Council in its 28th meeting held on July 21, 2018, recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act, 2017. These amendments were passed by the Parliament and got published in the official Gazette of India on August 30, 2018, after receiving the assent of the Hon ble President of India on August 29, 2018, as the CGST Amendment Act, 2018, IGST Amendment Act, 2018, UTGST Amendment Act, 2018 and the GST (Compensation to States) Amendment Act, 2018, respectively. Most of the amendments to the GST law passed by the Parliament in August 2018 took effect from February 1, 2019. A pressing issue faced by the businesses and other stakeholders was tha
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schemes & discounts issued on March 7, 2019. Concept of Credit and Debit Notes: A supplier of goods or services or both is mandatorily required to issue a tax invoice. However, during the course of trade or commerce, after the invoice has been issued there could be situations like the supplier has erroneously declared a value which is more/less than the actual value of the goods or services provided; the supplier has erroneously declared a higher/lower tax rate than what is applicable for the kind of the goods or services supplied; the quantity received by the recipient is more/less than what has been declared in the tax invoice, etc. In order to regularize these kinds of situations, the supplier is allowed to issue credit or debit note for adjusting the taxable value and/or tax charged thereon in case of incorrect taxable amount mentioned and/or incorrect tax charged in tax invoice and to deal with other specified scenarios, instead of issuing another tax invoice. Based on credit
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a registered person to issue one credit/ debit note for each single invoice. Considering the woes of industries and to facilitate ease of doing business, amendment has been carried out in Section 34 of the CGST Act (effective from February 1, 2019), which permits a registered person to issue consolidated credit/ debit note in respect of multiple invoices issued in a financial year without linking the same to individual invoices. Comparative analyses of Section 34 of the CGST Act: Pre-Amendment v. Post-Amendment Particulars Before February 1, 2019 After February 1, 2019 Section 34(1) of the CGST Act, relating to issue of credit note Where a tax invoice has been issued ………………. may issue to the recipient a credit note containing such particulars as may be prescribed. Where one or more tax invoices have been issued …………. may issue to the recipient one or more credit notes for the supplies made in a financial year contain
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Notification No. 03/2019- Central Tax dated January 29, 2019, effective from February 1, 2019. Vide the said amended rules, issuance of credit or debit notes has been de-linked from Rule 53(1) of the CGST Rules and a new sub-rule (1A) has been inserted, dealing with the particulars which need to be provided in the credit note or debit note. As per the said newly inserted Rule 53(1A), following are the particulars which are required to be contained in the credit note or debit note – Name, address and GSTIN of the supplier; Nature of the document; A consecutive serial number not exceeding sixteen characters, 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; Date of issue of the document; Name, address and GSTIN / UIN, in case the recipient is registered; Name and address of recipient and the address of the delivery, along with the name of
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n 15(3) of the CGST Act. As per Section 15(3) of the CGST Act, the value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the supply Therefore, a rider has been attached in Section 15(3) for post supply discount that such discount is established in terms of a pre-supply agreement between the supplier & the recipient and is specifically linked to relevant invoices. Even when the amendment in Section 34 of the CGST Act provides for issuance of consolidated credit/debit notes against multiple invoices, t
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