GST Concepts
Information on GST
Input Service Distributor under GST
As per Section 2(61) of CGST Act, 2017, “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.
Input Tax Credit
Input Tax Credit or ITC is the tax that a business pays on a purchase and that it can use to reduce its tax liability when it makes a sale.
In other words, businesses can reduce their tax liability by claiming credit to the extent of GST paid on purchases. Goods and Services Tax (GST) is an integrated tax system where every purchase by a business should be matched with a sale by another business. This makes flow of credit across an entire supply chain a seamless process.
Anti-Profiteering Measures under GST
The Anti-Profiteering Rules, 2017, (defined under Section 171 of the Central Goods and Services Tax Act 2017) as the name suggests, prevents entities from making excessive profits due to lowering of GST.
Exempt Supply in GST
It is the supply of goods and services that does not attract GST and allows no claim on ITC. Example: Bread, fresh fruits, fresh milk and curd etc.
GSP-GST Suvidha Provider
GSP or GST Suvidha Provider are special entities authorized by GSTN to develop a platform to enable the taxpayer to be GST compliant. APIs are the ones that enable all GST system functionalities such as Registration, Return filing, Payment of taxes, Invoice uploads. All GST return filings are managed by GSTN.
GST Common Portal
The GST common portal known as GSTN facilities in GST registration, GST Return Filing and other services relevant to taxpayer registered under GST.
Special Economic Zone (SEZ) under GST
As per Section 2(19) of IGST Act, Special Economic Zone shall have the same meaning as assigned to it in clause (za) of Section 2 of the Special Economic Zones Act, 2005.
Unique Identification Number (UIN) under GST
UIN stands for Unique Identity Number. It is the registration number given to certain specified persons , instead of GSTIN.
Indirect Tax Ombudsman
The government of India has created 7 posts of Indirect Tax Ombudsman at 7 stations, namely, Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Ahmedabad and Lucknow under the Indirect Tax Ombudsman Guidelines, 2011.
GSTN
Goods and Services Tax Network (GSTN) is a Section 8 (under new companies Act, not for profit companies are governed under section 8), non-Government, private limited company. It was incorporated on March 28, 2013. The Government of India holds 24.5% equity in GSTN and all States of the Indian Union, including NCT of Delhi and Puducherry, and the Empowered Committee of State Finance Ministers (EC), together hold another 24.5%. Balance 51% equity is with non-Government financial institutions. The Company has been set up primarily to provide IT infrastructure and services to the Central and State Governments, tax payers and other stakeholders for implementation of the Goods and Services Tax (GST). The Authorised Capital of the company is Rs. 10,00,00,000 (Rupees ten crore only).
GST Invoices
GST Invoice Format
An invoice is a commercial instrument issued by a seller to a buyer. It identifies both the trading parties, and lists, describes, and quantifies the items sold, shows the date of shipment and mode of transport, prices and discounts, if any, and the delivery and payment terms.
What is HSN Code?
HSN – Stands for Harmonised System Nomenclature. It was developed by World Customs Organization. It was developed with an objective to classify goods from all over the World in a systematic and an organised manner.
How to handle an Invoice sent incorrectly to a different recipient
For Instance, Supplier A has issued a hard-copy paper invoice to Recipient B, but has wrongly reported to the Government Portal that the Invoice is for Recipient C.
GST E-Invoices
E-Invoicing
E-invoicing’ means reporting details of specified GST documents to a Government-notified portal and obtaining a reference number. (It doesn’t mean generation of invoice by a Government portal.)
GST E-Way Bill
How to register E-Way bill
E-way bill registration is a simple process a registered GST tax payer has to complete to be able to generate e-way bills. Only the tax payers registered on e-way bill portal can generate e-way bills
E-Way Bill Current status
As per Rule 138 of the CGST Rules, 2017,every registered person who causes movement of goods (which may not necessarily be on account of supply) of consignment value more than Rs. 50000/- is required to furnish above mentioned information in part A of e-way bill. The part B containing transport details helps in generation of e-way bill.
E-Way Bill Generation
E-way bill is an electronic document generated on the GST portal evidencing movement of goods. It has two Components-Part A comprising of details of GSTIN of recipient, place of delivery (PIN Code), invoice or challan number and date, value of goods, HSN code, transport document number (Goods Receipt Number or Railway Receipt Number or Airway Bill Number or Bill of Lading Number) and reasons for transportation; and Part B comprising of transporter details (Vehicle number).
E-Way Bill Generation on SMS
Through SMS a user can perform the following actions.
- Generate e-Way bill
- Cancel e-Way bill
- Update vehicle details