GST Articles

There is certain crucial information that needs to be mentioned mandatorily in the GST invoice. These are:

• Name, address and the GSTIN of the supplier

• The nature of invoice (tax invoice, supplementary invoice or revised invoice)

• Invoice number (this shall be a consecutive alpha-numeric or numeric series, specific for a financial year)

• Date of Invoice

• Name, address and the GSTIN of the recipient

• Where the value of the goods exceeds Rupees Fifty Thousand and the recipient is an unregistered person, then name and address of such recipient and the delivery address of the consignment.

• Description of the goods or services

• HSN code of the goods or the Accounting Code of the Services

• Quantity of the goods or services

• Total value of the goods or services

• Rate of Tax on each item

• Tax amount charged, on account of CGST, IGST, and SGST to be shown separately under different columns

• Name of the supplying State and the place of supply

• Place of delivery

• A statement mentioning whether reverse charge is applicable or not

• Trade Discounts not forming part of value of the goods, if any

• Signature in physical form or Digital Signature of the supplier or an authorized person, duly certifying the invoice

In addition to the above particulars, an export invoice shall include the following.

• A mandatory statement mentioning these specific words – “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST.”

• Country of destination

• Delivery address

• The Number and date of application of form for removal, i.e. Form ARE-1

Likewise, when an Input Service Distributor issues the invoice, then “Amount of credit distributed” shall also be added to the invoice instead of the rate and value of the goods or services.

If you are a Goods Transport Agency, you are a critical link in the supply chain and has to include the following in your invoice.

• Name and address of the consignor and the consignee

• Registered Vehicle number

• Gross weight of the consignment

• Place of Origin

• Destination

• GSTIN of the person liable to pay tax

The transporter does not require to the Duplicate copy of the Invoice. Instead, they can opt for Invoice Reference Number, which can be generated by the supplier by uploading the tax invoice onto the GST Portal. The portal shall generate a number that is valid for 30 days from such date.

GST rollout will create new job opportinuty and same require skill addition to our exsiting team of accounting or non accounting professionals. Many can start practice as GST Preparers which will provide regular income to such professionals.

Here is the extract of the new as Published in Times of India indicating the trend in GST trained professionals who will be in greated demand post July 2017 Even as the job scenario in a few sectors becomes a bit grim, a new demand for `GST specialists' and `GST professionals' is creating a lot of positivity. Recruitment sites are brimming with job postings on GST (Goods and Services Tax) specialists and professionals who can join companies on an urgent basis to assist them in compliance and implementation work concerning this landmark tax reform.

Over the last one week, there have been numerous postings with candidates be ing offered salaries in the Rs 37 lakh per annum range by some companies.

An FMCG company put out an advertisement for a GST specialist with knowledge of direct taxation and is offering a salary of Rs 7 lakh per annum. The demand for GST specialists and professionals is way beyond services being offered by audit and taxation firms in India. Hiring experts said this also creates a new avenue for IT professionals, who may have lost their jobs, to reskill and help with their expertise in project management.

A GST specialist may well turn out to be the new version of a data scientist. Paul Dupuis, the newly appointed MD & CEO at Randstad India, told TOI, “I see new opportunities in GST.

There will be specia lists required to support the enablement of the whole movement of GST and that will cover every function.There will be people that will handle the epayment model, the flow of information, the flow of money and the protection of privacy along that flow. It's hard to predict what it will look like, but there will be opportunities that will get created.“ Dupuis said companies are at the cusp of understanding how the implementation would take place and are thus looking out for specialists. As for candidates, Dupuis said, “Project managers would be required and IT people are typically agile and generally good at project management. The advice we are giving to these candidates is to reskill and become relevant. An ecommerce IT specialist, for instance, could get placed in a pharmaceutical company . It will result in more jobs. We just haven't seen what it will translate into yet.“ Dupuis also sees this as an opportunity for Randstad India to create a bench of mobile workforce of highly qualified individuals who could be deployed wherever required just in time. “We are keen to do that in India. Being entrepreneurial, this could be an opportunity for us to be in the forefront,“ said Dupuis. Sunil Goel,

MD, GlobalHunt, an executive search firm, said existing tax professionals, too, will have to upgrade

themselves for GST.“Suddenly , demand for such professionals has increased in the market. It has been observed that people who have worked on VAT and excise are being trained for the task. But it is going to be a big task to get everyone trained and upgraded. Almost 50,000 tp 60,000 trained professionals will be required in the initial three to six months to make the process smooth,“ said Goel.

Larger companies already have their internal teams of finance and accounting working to keep track of GST and its implementation. Smaller companies, wholesalers and dealers are the ones who currently require assistance on an urgent basis to remain GST compliant. Sahil Gilani, director (sales & marketing), Gits Food Products, said, “I hope down the line, distributors, retailers and wholesalers get access to experts so as to avoid the anticipated confusion in July (when GST sets in) that is expected to hurt FMCG sales.“

Article 366(12A) of the Constitution as amended by 101st Constitutional Amendment Act, 2016 defines the Goods and Services tax (GST) as a tax on supply of goods or services or both, except supply of ; alcoholic liquor for human consumption. So alcohol for human consumption is kept out of GST by way of definition of GST on constitution.

Five petroleum products viz. petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel have temporarily been kept out and GST Council shall decide the date from which they shall be included in GST. Furthermore, electricity has been kept out of GST.

Every tax system requires compliance with statutory provisions in a timely manner. It may be periodic tax payments, filing of returns, maintenance of prescribed records, etc., which, many a time, pose a challenge to small businesses. Provisions to protect the interest of such small businesses are often found in the taxing statutes. The GST in India, too, has such provisions.

Presently, several State Governments have provisions for payment of a Composition levy of VAT for specified small businesses which makes compliance of tax laws easier without having to maintain copious records, registers and returns. A similar provision, however, does not exist under the Service Tax Law.

Section 8 of the Model GST Law contains provisions for Composition Scheme permitting the tax payer to opt for payment of GST as a fixed percent on turnover instead of paying tax under regular provisions of the law.

Applicability

1 Applicable to a registered Taxable Person Eligible even if registered voluntarily

2 Having Aggregate Turnover < Rs.50 lakhs Aggregate Turnover includes value of Taxable and Non-Taxable Supplies, Exempted and Export Supplies too. Does not include Taxes levied under GST and Value of Inward Supplies

3 Needs to make an application Even where the person is under Composition under the current VAT law, it is advisable to make the application under GST

4 Will need to pay taxes at usual rates on RCM, if applicable Reverse Charge Mechanism u/s 7(3) would apply even for such persons

Restrictions/Limitations

1 Cannot effect Inter State Supplies However, Inter State purchases are permitted

2 Aggregate Turnover to be computed across all Business Verticals and across the country for each PAN number Aggregate Turnover determined on pan India basis, for the respective Income Tax PAN no.

3 The person is not permitted to collect GST has to be borne by the person out of the Sale proceeds

4 Person shall not be entitled to Input Credits under GST Unlike persons under regular scheme, set-offs are not permitted

5 Law provides for additional conditions to be prescribed

Ease of doing business

1 Quarterly Returns As against 3 to 4 returns monthly

2 Lower rate of Tax Specified at not less than 1%. Expected to be in the region of 1% to 3%

3 In place of a Tax Invoice the document required is a Bill of Supply Convenient since details required are not as much.

4 Presently, several State VAT laws permit composition, but not available for services big boon to Service Providers since the Input Tax payment is negligible Composition Scheme under GST