9 ways GST could impact home buyers

For every portion of the law, its interpretation plays a key role in its success and compliance. The Goods and Service Tax (GST) is no different. The key aspect of the new law is to be able to distinguish between what is happening today and what will happen in the future.
Magicbricks has compiled a list of new concepts that you need to know if you want to invest in real estate in particular and GST as a new concept in general. So when you land in the property market you know how the taxation machinery works.
Dual GST
As states and the Centre have different roles to play as far as taxation is concerned, there is dual GST which means, for whatever the goods and services that you buy the two governments are going to levy tax.

To begin with, every state will have its own state GST act (SGST) and state GST rules. For instance, Delhi will have Delhi GST Act while Haryana will have its own GST Act. Similarly, the Union government has enacted the central GST law (CGST).  ..
What gets subsumed?

Under the new tax regime, there are a number of taxes that will be discontinued. From a Union government’s perspective, the central excise, the service tax, the two portions of the customs duty which is countervailing duty and special additional duty will disappear and merge into GST. From the state’s kitty, VAT (value added tax), entry tax, octroi, purchase tax, entertainment tax, luxury tax and the various cesses and surcharges will all be subsumed into the new tax regime.
What stays?
From the real estate point of view, stamp duty, which is a state levy, stays. Basic customs duty will continue to apply the way it is applied today. A cess that applies on customs at the rate of 3% also stays. GST would apply to under-construction properties at 18% (effective rate 12%). KPMG partner (indirect tax) Priyajit Ghosh adds, “While electricity usage has been kept out of the purview of GST, water charges will attract concessional GST.”

Unregistered vendor
The GST Act says that a person whose annual turnover is below Rs 20 lakh may or may not get registered under GST or pay GST. “If you buy goods from people who are unregistered then as a recipient you will have to pay GST on their behalf,” says Ghosh. For instance, if a developer buys river sand from an unorganized player who is not registered and not charging GST, then the developer will have to pay tax on his behalf and then take a credit on the GST p ..
Reverse charge
The reverse charge mechanism means that if a person transacts with an unregistered dealer, he will have to pay the tax within 30 days under the reverse charge mechanism. “Under the previous regime, one had to pay service tax for using certain services such as rent a cab, legal services or transportation of goods by road. The same concept has been borrowed under GST, which means for a certain set of services you will have to pay GST and later claim credit on .. explains Ghosh.
Input tax credit
The other aspect about GST is the input tax credit which is the heart of GST because there can’t be a tax on tax. In the context of real estate, GST which is charged by contractors on construction of a house is going to be credited against the GST charge on sale. Under GST there is a composition scheme restricted to Rs 75 lakh turnover annually, i.e. between Rs 20-75 lakh. The composition scheme is a simplified scheme where one pays 1-2% on the entireinvoice but one does not get ITC. This is a PAN-based turnover but not a state-specific turnover, which means, all states put together will not be able to go for a composition scheme and you are under a normal scheme. This means you will get a credit of all the input taxes that you have paid and you will have to charge the normal GST rate which is applicable, which is effective 12% in the case of real estate.

Anti-profiteering clause
GST says that whatever additional credit a developer gets, the price has to be reduced by that amount. Likely to be enforced on the lines of the Competition Commission of India, the ‘Anti Profiteering Authority of India’ will take steps to check collusion between businessmen who may not pass on profits to the consumer. So, a developer is bound to pass on the profits to the consumer else he may have to face penal provisions under the law.
Works contract
Until the GST kicked in, a works contract was any contract which meant supply of both goods and services. Post-GST this means any contract which involves construction of an immovable property, services to immovable property, whether goods or services. Any contract which involves moveable goods do not qualify for works contract under GST. Any reference to works contract under GST has to be in relation to immovable property.

Place of supply rules
The place of supply rules will play a crucial role in determining the correct tax. If there is a transaction between two parties where either the services or goods are exchanged for a specific price then it gets into the definition of supply. As far as real estate is concerned, transactions are for under-construction properties. Fundamentally, if a sale is happening for an under-construction property it will attract GST. Therefore, a constructed prop .. which has received completion certificate or occupation certificate or land will not attract GST. The interest and penalty on a delayed payment recovered from buyers comes under supplies.

Similarly, stock transfers also attract GST. For instance, if a developer has a project running in Noida and he wishes to transfer the excess cement in Noida to his another project in Gurgaon, he will have to pay GST on the stock transfer of cement. There is no GST if you do a stock transfer of same goods or any services within the state.
In a nutshell, the price of a property is not the final outcome of taxes alone. There are other factors including demand-supply dynamics and government policies, which play a critical role in determining the price of a property.


GST protests a sham; tax on fabrics a non issue; know the horror stories and more

Before the government made the excise duty on fabric optional in 2003-04, the textile hub of Surat, where traders temporarily called off a two-week-long strike on Tuesday against the GST regime, was a deadly place for taxmen to venture into.

Before the government made the excise duty on fabric optional in 2003-04, the textile hub of Surat — where traders temporarily called off a two-week-long strike on Tuesday against the goods and services tax (GST) regime — was a deadly place for taxmen to venture into. One horror story has it that an overzealous excise inspector once landed up at a textile unit there to enquire about the duty the proprietor was paying, narrates a textile industry veteran who has been a frequent visitor to Surat for business activities. “The hapless fellow was grabbed by four people and thrown into a boiler in no time for his audacity,” he told FE.

For decades, Surat has come to be known as a place for cheap saris, thanks to the opaque system where hardly any trader pays any indirect tax on fabric in accordance with the rule books. “It’s the fear of the formalisation of business where every transaction can be tracked for tax purposes under the GST regime that bothers these traders,” he said. Their demand for the removal of a 5% GST on fabric or at least an 18-month moratorium on GST for them is nothing but a sham, he added.

FE spoke to senior executives of half a dozen textile and garment companies who reiterated this view. It’s not just Surat, which accounts for roughly 40% of the country’s synthetic fibre output, such traders in other places like Indore and Bhiwandi (Maharashtra) are also tacitly supporting this agitation and closely watching the government’s moves, they added. They spoke on condition of anonymity as they all have business dealings with fabric traders in such cities. “If the government stands firm, this protest will fizzle out ultimately. But if it budges, it will encourage similar elements in other industries as well,” one of them said.

Currently, the duty incidence goes like this: There is an 18% GST on man-made fibre-filament/yarn, in place of the earlier VAT and excise duties. When the weaver sells the bale to the trader, the trader will have to pay 5% GST. As the textile trader sends the product for dyeing and printing, he will pay processing charges, with a 5% GST. After the cloth is dyed and returned to the trader, he sells it to the wholesaler with a 5% GST.

Thereafter, the wholesaler adds his own profit margin and sells to the retailer with a 5% GST.

The catch is that everybody in chain gets input tax credit against the taxes paid in the previous stage, so there is not really much of a burden on the trader as well due to the 5% GST on fabrics, as it is touted to be.

For its part, the government on Wednesday ruled out any change in tax rate unless there is an anomaly or the rates are unjustified. Central Board of Excise and Customs chairperson Vanaja Sarna said: “It (protest in Surat) is an issue that has snowballed but it is not something which cannot be settled… The issue is that textile sector is taxed for the first time. So anybody who comes into the net would feel the pinch.”

Speaking in the Rajya Sabha on Tuesday, finance minister Arun Jaitley said zero GST on fabrics “will break the input tax credit chain and then the garments/made-ups manufacturers will not be able to get the credit of tax on previous stages”. Also, zero GST on fabrics will result in zero rating of imported fabrics, while domestic fabrics will continue to bear the burden of input taxes.

While the traders in Surat have called off the strike that is expected to have caused a potential loss of Rs 5,000 crore, they have warned of further stir if the government doesn’t come up with a solution in their favour in the next GST Council meeting on August 5. Although the city sells a lot of such cheap, unbranded stuff, it also boasts of some good brands, including Prafful, Parag and Rachna, as well. Nevertheless, the unorganised segment still accounts for the bulk of the business.

Source: http://www.financialexpress.com/india-news/gst-protests-a-sham-tax-on-fabrics-a-non-issue-know-the-horror-stories-and-more/770703/

Register with GST, don’t wait till July 30 deadline: Govt to traders

NEW DELHI: The government urged traders on Saturday to register for the goods and services tax (GST) soon, and not wait for the July 30 deadline. If one is owns a business with an aggregate turnover exceeding Rs 20 lakh in the preceding financial year (Rs 10 lakh in special-category states), they will need to register in all the states and Union territories to which they make taxable supplies.
“However, one need not register if one is engaged exclusively in the supply of exempted goods or services or both,” the finance ministry said. The ministry said GST registration was a very simple process— one can register from home by filing an online application on the common portal https://www.gst.gov.in/. The documents needed are a valid PAN card, email id and a mobile phone number.

Once the details are verified, applicants will be asked to furnish other details about their business. “There is no need to submit any physical documents (unless a query is raised and documents asked for) and all necessary documents can be scanned and uploaded,” the statement said. If there are no queries, one will be registered within three working days of applying. “More than anything, getting registered is for one’s own benefit.
If one is liable to take registration but doesn’t get registered, they will not be able to enjoy the benefit of input tax credit. Not only he/she, but any registered person purchasing from him/her may not be able to get the input tax credit. Not obtaining registration, though liable to do so, would also attract penalty,” the ministry said.
It said that getting registered would lead to growth in one’s business. “Prospective buyers who are registered under GST will prefer to buy from suppliers who are also registered under GST, as this would entitle them to the input tax credit,” the ministry said.
It said that registering under GST also meant that one was contributing towards nation-building by ensuring that appropriate taxes were collected and paid to the government.


(GSTmitra-Series-15) 📒 Anti-Profiteering in GST

⛳ ANTI-PROFITEERING in Indian GST [Sec. 171 of CGST Act]
🌴 Reduction in rate of tax on the supply of goods or services or
🌴 Benefit of input tax credit
🌴 By the registered person
🌴 By way of reduction in prices

🌴 Authority may determine the methodology and procedure for determination as to whether the reduction in rate of tax on the supply of goods or services or the benefit of input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices.

⛳ For any rate reduction in new tax regime
🌴 As regards passing of benefit due to rate reduction, in case of supplies exclusive of tax there should not be a big challenge, since reduction in tax rate will directly be evidenced by invoices and the recipient will get benefit of the rate reduction.
🌴 In case where contract of supplies is inclusive of taxes, this provision will cast responsibility on the supplier to reduce the price due to reduction in rate of taxes.
🌴 E.g., FMCG items which are normally sold on MRP basis or some other fixed prices by retailers, if there is any reduction in rate of tax it has to be passed on to the ultimate recipient.
🌴 Accordingly, there shall be need to revise MRP or other prices fixed for such supplies.

⛳ For any benefit of Input tax Credit
🌴 As regards passing of benefit due to better credit chain, it is going to affect almost all industries.
🌴 In most places, be it service sector, manufacturing, trading or any specific industry, all are going to get advantage of better flow of Input Tax Credit.
🌴 So the expectation of the provisions are commensurate reduction in prices of supplies.

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-14) 📒 Major Impact under GST

🌴 Tax is levied by centre and states concurrently on destination based consumption principal. Thus, final tax accrues in the hands of state where goods/services are consumed.
🌴 Tax will be levied on supply to agents, Interstate Branch transfer and transfer to different vertical within same state but having different registration.
🌴 Place of supply is to be checked to identify Whether CGST and SGST or IGST is to be charged, considering place of supply provisions.
🌴 Tax liability will arise on advance receipts/ payment.
🌴 Tax will be payable under Reverse charge on all purchases made from unregistered dealers and on other goods as notified.
🌴 Interest, late fee and penalty charged for delayed payment of consideration is to be included in valuation for the purpose of calculation of tax.
🌴 Anti-profiteering measure is introduced to ensure that credit is passed on to the final consumer.

🌴 Credit is available; be it used for manufacture or not, like office equipment, stationery etc. subject to the condition that it is used in the furtherance of business.
🌴 Credit of GST paid on any purchase for use in furtherance of Business (including interstate) is available.
🌴 In GST the Invoice should be received before 30th September after the end of FY to avail the credit.
🌴 Tax is payable on Advance payment for purchase of goods or services.
🌴 Complete matching is required. If tax is not paid by the seller then the tax credit will not be available to the buyer.
🌴 It will be very necessary for the buyer to check beforehand about vendor being tax compliant.
🌴 Government has come up with GST rating mechanism where it will be easy to find out the status of supplier.

🌴 Most of the compliances are online on GST portal.
🌴 One GST laws to be complied.
🌴 Time Period of maintaining and keeping accounts is 6 years from the date of Annual Return.

🌴 GST Audit is required to be conducted by a Chartered Accountant or Cost Accountant for each registration having turnover exceeds turnover limit of Rs. 2 Crore.
🌴 No statutory forms or statutory registers are required to be maintained. Books can also be maintained in electronic form.
🌴 Invoice is to be raised in all cases at the time of removal of goods except in certain specified circumstances.

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-13) 📒 GST in respect of under construction flats etc.

⛳ Press Release by CBEC w.r.t. “Reduced Liability of Tax on complex, building, flat etc. under GST”.

⛳ Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime.

⛳ Central Excise duty is payable on most construction material @12.5%. In addition, VAT is also payable on construction material @12.5% to 14.5% in most of the States. In addition, construction material also presently suffer Entry Tax levied by the States. Input Tax Credit of the above taxes is not currently allowed for payment of Service Tax. Credit of these taxes is also not available for payment of VAT on construction of flats etc. under composition scheme. Thus, there is cascading of input taxes on constructed flats, etc.

⛳ As a result, incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat.

⛳ The current rate of service tax on construction of flats, residences, offices etc. is 4.5%. Over and above this, VAT @1% under composition scheme is also charged. The buyer only looks at the headline rate of 5.5%. In other cities/states, where VAT is levied under the composition scheme @2% or above, the headline rate visible to the customer is above 6.5%. What the customer does not see is the embedded taxes on account of cascading and sticking of input taxes in the cost of the flat, etc.

⛳ This will change under GST. Under GST, full input credit would be available for offsetting the headline rate of 12%. As a result, the input taxes embedded in the flat will not (& should not) form a part of the cost of the flat. The input credits should take care of the headline rate of 12% and it is for this reason that refund of overflow of input tax credits to the builder has been disallowed.

⛳ Anti-Profiteering Clause: The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/ installments. It is, therefore, advised to all builders / construction companies that in the flats under construction, they should not ask customers to pay higher tax rate on instalments to be received after imposition of GST.

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-12) 📒 Composition Scheme Under GST

⛳ A registered person, whose aggregate turnover in the preceding FY doesn’t exceed Rs. 75 Lakhs may opt for Composition Scheme and pay tax.
⛳ It would be applicable for all transactions under the same PAN-India bases.
⛳ Composition taxable person shall not be eligible for any Input tax credit.
⛳ CTP shall not collect any tax on supply.
⛳ CTP will issue Bill of Supply instead of Tax Invoice.
⛳ CTP is liable to pay tax on receipts of goods or services from un-registered person.
⛳ CTP is liable to pay tax on receipts of services under RCM.
⛳ No ITC allowed for taxed paid under reverse charge.

⛳ Persons not eligible:
🌴 Effecting inter-state outward supplies.
🌴 Making supply of exempted goods.
🌴 Engaged in supply of any other service except food/restaurant services.
🌴 Making any supply of goods through an e-commerce operator.
🌴 Manufacturer of notified goods.

⛳ The Registered person paying tax under composition scheme is required to pay tax on quarterly basis and also required to file a quarterly return in Form GSTR-4 by the 18th of the month following the end of the quarter.

⛳ The option availed by a registered person shall lapse with effect from the day on which his aggregate turnover during a financial year exceeds 75/50 lakh rupees.

⛳ Person Registered Before GST Regime (Opt for Composition)
🌴 Having Prov. ID shall file an intimation in FORM GST CMP-01 within 30 days from AD.
🌴 Required to file detail of stock from all suppliers (including unregistered) AND Input credit in Return as on 30 June 2017 in FORM TRAN-1.
🌴 Further, detail of stock from all suppliers (including unregistered) AND Inward supply as on 30 June 2017 in FORM GST CMP-03 within 60 days of opting for composition.

⛳ Person Registered Under GST Regime (Opt for Composition)
🌴 Any Person who are not registered under the existing law and applies for registration under GST regime with an option to pay under composition in Form GST REG-01.
🌴 Further, registered taxable person files an intimation to pay tax under composition in FORM GST CMP-02 prior to commencement of FY.
🌴 Further, furnish the statement in Form GST ITC-03 within 60 days (Regular to Composition) of commencement of FY.

⛳ Condition & restriction to Opt for Composition
🌴 Cannot be a Casual Taxable Person or a Non-resident taxable person.
🌴 Goods in stock on transition date must not have been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State.
🌴 If goods held in stock on AD purchased from an unregistered supplier or any notified goods or services or both, then pay tax under RCM.
🌴 Not engage in the manufacture of notified goods during the preceding FY.
🌴 On every notice or signboard mandatory to mention the words “Composition Taxable Person”.
🌴 On top of Bill of Supply mandatory to mention the words “Composition Taxable Person, not eligible to collect tax on supplies”.

⛳ Validity of composition levy (Opt Out from Composition)
🌴 If CTP ceases to satisfy any condition or suo-motu, require to furnish FORM GST CMP-04 within 7 days of occurrence of such event then, shall liable to issue Tax Invoice.
🌴 Proper officer may issue SCN in FORM GST CMP-05 & the recipient gives his reply in FORM GST CMP-06 within 15 days, thereafter the proper officer issue an order in FORM GST CMP-07 within 30 days.
🌴 Further, furnish the statement in FORM GST ITC-01 for the ITC CLAIM within 30 days.

⛳ Rate of Tax
1. Manufacturers or other than manufacturers notified by the govt. (ice-cream, tobacco, pan masala) 1%+1%= 2%
2. Suppliers of food & any human consumption article or drink except alcohol. 2.5%+2.5%= 5%
3. Any other Supplier eligible to opt CS 0.5%+0.5%= 1%

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-11) 📒 READY FOR GST

🌴 GST is finally coming on 1 July-2017.

🌴 Inform your GSTIN / ARN to all suppliers of Goods & Services.

🌴 Obtain GSTIN of all Suppliers/Vendors.

🌴 Start working to maintain quantity details of stock with value and invoices as on 30 June-2017 for claiming credit in GST.

🌴 Make a separate file of those items which are shown in your Unsold stock as on 30.6.2017 e.g. Purchase Bills/ Bill of Entry/ Excise Paying Documents etc.

🌴 Intra-state supply (e.g. Delhi to Delhi Sales), say GST rate @5% Charge CGST@2.5% and SGST@2.5% in Invoice. If address of delivery to different state, then charge IGST.

🌴 Inter-state supply (e.g. Delhi to Gurgaon Sales), say GST rate @5% Charge IGST@5% in Invoice.

🌴 If purchase from un-registered dealer, then pay GST on reverse charge @ rate of goods/services.

🌴 Stock ageing be made to ascertain if any stock is more than 1 year old.

🌴 Make strict follow-up to Collect all the C forms/F Form/ I forms etc.

🌴 Formulate and ready the invoice proforma.

🌴 Take a note of the HSN codes and tax rates of the goods/ services dealing with.

🌴 Matching concept/ Reconciliation will be biggest time-consuming task in GST regime, so start connecting with your suppliers.

🌴 GST / Interest/ penalty or any levy may be paid through RTGS/ NEFT/ Debit Card/ Credit Card Etc. by 20th of next month or 18th of quarter.

🌴 Due Dates for uploading of Returns:
GSTR 1: 10th of Next Month
GSTR 2: 15th of Next Month
GSTR 3: 20th of Next Month
GSTR 4: 18th of Next Quarter (Composite Dealers)
GSTR 9: 31st December of Next F.Y.

🌴 GSTR-1 with invoice level details needs to be filed for the month of July by 5th September, and for the month of August by 20th September. GSTR-2 and GSTR-3 for these 2 months will be filed thereafter.

🌴 Option of revising the return is not available in GST Regime.

🌴 A return furnished without payment of full tax due as per such return shall be treated as invalid return for allowing input tax credit in respect of supplies made by such person.

🌴 Input tax credit is eligible only after filing a valid GST return.

🌴 Plan and build a system for keeping the accounting records updated by every month end.

🌴 Under GST, every registered taxable person is required to maintain correct accounts of the following details at the principal place of business specified in the registration certificate: –
📒 Inward and outward supply of goods and/or services,
📒 Stock of goods,
📒 Input tax credit availed,
📒 Output tax payable and paid,
📒 Tax Invoice/Bill of Supply, Receipt Voucher, Payment Voucher, Refund Voucher, CN/DN,
📒 Electronic Credit Ledger, Electronic Cash Ledger, Tax Liability Register for easy reconciliation.

🌴 Maintaining books and records in electronic form will be ideal and convenient for accurate and timely compliance under GST.

🌴 For Persons whose turnover during the financial year exceeds Rs. 2 crore is required to get the accounts audited by a Chartered Accountant and Submit a copy of the audited annual accounts and a reconciliation statement.

🌴 All above Invoices, Registers, Cash/Bank Statement is required to file GST Return.

🌴 New Registration in GST will be commenced from 25th June.

🌴 Be in regular touch with your GST Consultant.

🌴 Pay special attentions for any Calls/ mails/ messages or communication of your GST Consultant/ Department.

Disclaimer: The above points applies to regular case. It doesn’t mean all the provisions of GST Act is covered. It may be cover some other point on a case to case basis.
Please contact

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-10) 📒 Tax Invoice

⛳ Supplier of taxable goods is required to issue a tax invoice?
🌴 Before or at the time of REMOVAL of the goods where the supply involves movement of goods.
🌴 Before or at the time of DELIVERY of the goods to the recipient where the supply does not involve movement of goods.

⛳ Supplier of services is required to issue a tax invoice
🌴 Before provision of the services.
🌴 After provision of the services but within a specified time (30/45 days).

⛳ Particulars in a ‘Tax Invoice’
According to Rule 1 of GST Invoice Rules, a tax invoice issued by the REGISTERED PERSON shall contain the following particulars:
a. name, address and GSTIN of the supplier,
b. a consecutive serial number, not exceeding 16 characters containing only alphabets and/or numerals, unique for a financial year,
c. DATE of its issue,
d. name, address and GSTIN/ UIN, if registered, of the recipient,
e. name and address of the RECIPIENT and the address of delivery, along with the name of State and its code, if such recipient is UR and where the value of taxable supply is Rs. 50,000/- or more,
f. hsn code of goods or Accounting Code for services,
g. DESCRIPTION of goods or services or both,
h. QUANTITY in case of goods and unit or Unique Quantity Code thereof,
i. TOTAL VALUE of supply of goods or services or both,
j. TAXABLE VALUE of supply of goods or services taking into account discount or abatement, if any,
k. RATE of tax (CGST, SGST, IGST, UTGST or cess),
l. AMOUNT OF TAX charged in respect of taxable goods or services (CGST, SGST, IGST, UTGST or cess),
m. PLACE OF SUPPLY along with the name of State, in case of a supply in the course of inter-State trade or commerce;
n. ADDRESS OF DELIVERY where the same is different from the place of supply;
o. whether the tax is payable on REVERSE CHARGE basis; and
p. SIGNATURE or digital signature of the supplier or his authorized representative.

⛳ In case of exports of goods or services, the invoice shall carry an endorsement?
🌴 name and address of the recipient;
🌴 address of delivery;
🌴 name of the country of destination; and
🌴 number and date of application for removal of goods for export.

⛳ Supplies not exceeding Rs.200/-
A registered person is not required to issue a tax invoice in respect of supply of goods or services or both where the value therein does not exceed a sum of Rs.200/- subject to the following conditions: –
🌴 the recipient is not a registered person; and
🌴 the recipient does not require such invoice,

⛳ Consolidated Bill of Supply
Rule 1 of GST Invoice Rules, consolidated bill of supply shall be prepared by the registered taxable person-
🌴 at the end of each day,
🌴 in respect of all supplies for value of less than rupees two hundred (Rs. 200),

⛳ Insurer, Banking Company, Financial Institution, NBFC and Passenger transport agency
🌴 Optional: Serial No., Address of the recipient.
🌴 Mandatory: supra
Note: Time limit of Issue of Tax Invoice for services is 30 days.

⛳ Goods transport agency transporting goods by road
🌴 Mandatory: supra + Gross weight of consignment, Consignor and Consignee Name, Reg. No. of Vehicle, Details of goods transported, Origin and Destination, GSTIN of person liable to pay tax.

⛳ Revised Tax Invoice
🌴 The Taxable person may issue a revised tax invoice for supplies from the effective date of registration till the date of issuance of registration certificate.
🌴 Issue within one month from the date of registration.
🌴 Such person may also issue a consolidated revised tax invoice in respect of all taxable supplies made to a recipient who is not registered.
🌴 In a transaction of inter-state supply where the value of supply does not exceed Rs.2.50 lakhs a consolidated revised tax invoice is to be issued separately for each of the recipients in a particular State who are not registered.

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005

(GSTmitra-Series-9) 📒 Bill of Supply

⛳ What is Bill of Supply?

🌴 SECTION 31(3)(c) of CGST Act, A registered person supplying EXEMPTED goods or services or both or paying tax under the provisions of SECTION 10 shall issue, instead of a tax invoice, a bill of supply (in lieu of tax invoice) containing the prescribed particulars.

⛳ Particulars in a ‘Bill of Supply’
According to Rule 4 of GST Invoice Rules, a bill of supply issued by the supplier shall contain the following details:
a. name, address and GSTIN of the supplier,
b. a consecutive serial number, not exceeding 16 characters containing only alphabets and/or numerals, unique for a financial year,
c. date of its issue,
d. name, address and GSTIN/ UIN, if registered, of the recipient,
e. HSN Code of goods or Accounting Code for services,
f. description of goods or services or both,
g. value of supply of goods or services taking into account discount or abatement, if any, and
h. signature or digital signature of the supplier or his authorized representative.
Note: Tax Invoice issued under any other act in respect of non-taxable supply shall be treated as bill of supply.

⛳ HIGHLIGHTS of ‘Bill of Supply’?
🌴 bill of supply to be issued by registered taxable person supplying non-taxable goods and/or services.
🌴 bill of supply to be issued by registered taxable person paying amount under the composition levy.
🌴 bill of supply containing prescribed particulars is issued in lieu of tax invoice.
🌴 bill of supply will also be issued by unregistered persons who are not required to pay GST.
🌴 bill of supply will generally contain the similar particulars as in case of tax invoice except that of tax charged.

⛳ When Bill of Supply is not required?
🌴 Rule 4 of GST Invoice Rules, a registered taxable person may not be required to issue bill of supply if the value of the goods or services supplied is < Rs. 200. 🌴 He may be required to issue bill of supply where the recipient of the goods or services requires such bill. ⛳ Consolidated Bill of Supply
Rule 4 of GST Invoice Rules, consolidated bill of supply shall be prepared by the registered taxable person-
🌴 at the end of each day,
🌴 in respect of all supplies for value of less than rupees two hundred (Rs. 200),
🌴 consolidated bill of supply will only cover supplies where bill of supply has not been issued..

CA. SHARMA Praveen
GST Trainer & Consultant
+91 9871530610, 8383073005