GST:TAX INVOICE, DEBIT OR CREDIT NOTES, RETURNS, PAYMENT OF TAX (PROVISION & PROCEDURE) AND ELECTRONIC COMMERCE OPERATOR,

Transcription

1 GST:TAX INVOICE, DEBIT OR CREDIT NOTES, RETURNS, PAYMENT OF TAX (PROVISION & PROCEDURE) AND ELECTRONIC COMMERCE OPERATOR, Baroda Branch of WIRC of ICAI Dated 26/04/2017 A Presentation by CA. (Dr.) Shailendra Saxena B.COM,SAP(FICO),ACS,FCMA,FCA,DISA(ICAI).Ph.D. 1

2 GST TAX INVOICE, CREDIT AND DEBIT NOTES 2

3 TAX INVOICE A registered taxable person while supplying taxable goods/services shall issue a tax invoice containing following details. (a). name, address and GSTIN of the supplier, (b). a consecutive serial number containing only alphabets and/or numerals, unique for a financial year, (c). Date of its issue (d). name, address and GSTIN/ Unique ID Number, 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 unregistered and where the taxable value of supply is fifty thousand rupees or more (f). HSN code of goods or Accounting Code of services (g). description of goods or services (h). quantity in case of goods and unit or Unique Quantity Code thereof (i). total value of goods or services 3

4 TAX INVOICE (j). taxable value of goods or services taking into account discount or abatement, if any, (k). rate of tax (CGST, SGST or IGST), (l). amount of tax charged in respect of taxable goods or services (CGST, SGST or IGST), (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). place of delivery where the same is different from the place of supply (o). whether the tax is payable on reverse charge, (p). the word Revised Invoice or Supplementary Invoice, as the case may be, indicated prominently, where applicable along with the date and invoice number of the original invoice; and (q). signature or digital signature of the supplier or his authorized representative. In case of export, the invoice shall carry an endorsement SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST or SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST. 4

5 TAX INVOICE Manner of Issuing Invoice The invoice shall be prepared in triplicate, in case of supply of goods, in the following manner (a) the original copy being marked as ORIGINAL FOR RECIPIENT, (b) the duplicate copy being marked as DUPLICATE FOR TRANSPORTER; and (c) the triplicate copy being marked as TRIPLICATE FOR SUPPLIER. The invoice shall be prepared in duplicate, in case of supply of services in the following manner (a) the original copy being marked as ORIGINAL FOR RECEIPIENT; and (b) the duplicate copy being marked as DUPLICATE FOR SUPPLIER. 5

6 TAX INVOICE 6

7 BILL OF SUPPLY Following persons are required to issue bill of supply. 1. Supplying non-taxable goods/services 2. Paying tax under Section-9, i.e. composition levy Bill of Supply shall contain following details. 1. name, address and GSTIN of the supplier, serial number, date of issue 2. name, address and GSTIN/ Unique ID Number, if registered, of the recipient 3. HSN Code of goods or Accounting Code for services 4. description of goods or services 5. value of goods or services taking into account discount or abatement, if any 6. signature or digital signature of the supplier or his authorized representative 7

8 Tax invoice GOODS & SERVICE TAX INVOICE RULES Export supplies will be marked as SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST or SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST, as applicable. Besides name and address of recipient and address of delivery, the country of destination and date of application for removal for export shall also be mentioned. Supply of services between distinct persons in case of insurance/banking company, financial institution (including NBFC), telecom operator or other notified class of suppliers may issue invoice before or at the time the supplier records in his account books or before expiry of the quarter during which supply was made Invoice for supply of goods shall be in triplicate and for services in duplicate. Original shall be for recipient. Duplicate (in case of supply of goods) shall be for transporter. Triplicate (goods) and duplicate (services) copy shall be for supplier. 8

9 BILL OF SUPPLY 9

10 TAX INVOICE IN CASE OF SUPPLY OF TAXABLE GOODS Event Document Time of issue A registered person supplying taxable goods [Section 31(1)] Tax Invoice -Before or at the time of: (a) removal of goods for supply to the recipient, where the supply involves movement of goods (b) delivery of goods or making available thereof to the recipient, in any other case. -Not mandatory to separate issue tax invoice for supplies below Rs. 200/- in case such tax invoice is not required by the customer. [Section. 31(1) (3)(b)] 10

11 TAX INVOICE IN CASE OF SUPPLY OF TAXABLE SERVICE Event Document Time of issue A registered person supplying taxable services [Section 31(2)] Tax Invoice Before or after the provision of service but within a period of thirty days from the date of supply of service [Rule 2] Not mandatory to separate issue tax invoice for supplies below Rs. 200/- in case such tax invoice is not required by the customer. [Section. 31(1) (3)(b)] However shall issue a consolidated tax invoice for such supplies at the close of each day in respect of all such supplies. [Third Proviso to Rule 1] 11

12 TAX INVOICE IN CASE OF CONTINUOUS SUPPLY OF GOODS Event Document Time of issue In case of continuous supply of goods [Section 31(4)] Tax Invoice where successive statements of accounts or successive payments are involved: before or at the time each such statement is issued or, as the case may be, each such payment is received. 12

13 TAX INVOICE IN CASE OF CONTINUOUS SUPPLY OF SERVICE Event Document Time of issue In case of continuous supply of services [Section 31(5)] Tax Invoice (a) due date of payment is ascertainable: on or before the due date of payment; (b) due date of payment is not ascertainable: On or before the time when the supplier of service receives the payment; (c) payment is linked to the completion of an event: on or before the date of completion of that event 13

14 TAX INVOICE IN CASE OF RECEIPT OF ADVANCE Event Document Time of issue On receipt of advance [Section 31(3)(d)] Where subsequently no supply is made and no tax invoice is issued in pursuance of advance receipt issued, a refund voucher shall be issued against such payment; [Section 31(3)(e)] a receipt voucher or any other documents a refund voucher At the time of receipt of advance 14

15 GOODS & SERVICE TAX INVOICE RECEIPT VOUCHER RULES A registered person shall issue a receipt voucher on receipt of any advance payment with respect to any supply of goods or services or both containing the following details: Name, address and GSTIN of the supplier Consecutive serial number Name, address and GSTIN or UIN, if registered, of the recipient Description of goods or services Amount of advance taken Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess); Amount of tax charged in respect of taxable goods or services Place of supply along with the name of State and its code, in case of inter-state trade Whether the tax is payable on reverse charge basis Signature/ Digital Signature of the supplier or his authorised representative 15

16 RECEIPT VOUCHER 16

17 TAX INVOICE IN CASE OF WHERE THE SUPPLY OF SERVICE CEASES UNDER A CONTRACT Event Document Time of issue supply of services ceases under a contract before the completion of the supply [Section 31(6)] Tax Invoice at the time when the supply ceases ( invoice shall be issued to the extent of the supply made before such cessation) 17

18 TAX INVOICE IN CASE OF GOODS BEING SENT OR TAKEN ON APPROVAL Event Document Time of issue where the goods being sent or taken on approval for sale or return are removed before the supply takes place [Section 31(7)] Tax Invoice On or before the time of supply or six months from the date of removal, (whichever is earlier) 18

19 TAX INVOICE IN CASE OF GOODS COMPOSITION DEALER OR SUPPLIER OF EXEMPTED GOODS OR SERVICES Event Document Time of issue Composition dealer or supplier of exempted goods or services [Section. 31(1) (3)(c) & proviso thereof] bill of supply in place of Tax Invoice For supplies below Rs. 200/- to unregistered customers, he may not issue separate bill of supply if case bill not demanded by the customer. [Proviso to Rule 4] 19

20 TAX INVOICE IN CASE OF GOODS PURCHASE FROM UNREGISTERED DEALER Event Document Time of issue Purchase from unregistered dealer i.e. tax payable under reverse charge. [Section. 31(1)(3)(f)] Invoice on the date of receipt of goods or services or both 20

21 TAX INVOICE IN CASE OF GOODS PURCHASE FROM UNREGISTERED DEALER Event Document Time of issue Payment for Purchase from unregistered dealer i.e. tax payable under reverse charge. [Section. 31(1) (3)(g)] Payment Voucher at the time of making payment to the supplier 21

22 REVISED INVOICE FOR SUPPLIES MADE FROM EFFECTIVE DATE OF REGISTRATION TO TILL THE DATE OF ISSUANCE OF CERTIFICATE OF REGISTRATION TO THE SUPPLIER. Event Document Time of issue Supplies made during the period beginning with the effective date of registration till the date of issuance of certificate of registration to the supplier. [Section. 31(1) (3)(a)] 1. Revised Invoice [Rule 6(2)] 2. Consolidated revised tax invoice (in respect of all taxable supplies made to all recipients who are not registered under the Act.) [first proviso to Rule 6(2)] within one month from the date of issuance of certificate of registration 22

23 CREDIT NOTE Particulars Credit Note [Section 34(1)] Provision After issuance, invoice is found to exceed taxable value/ tax payable on such supply Credit note to issue up to earlier of following 30th day of the September following the end of the financial year in which supply made. date of filing of relevant annual return No credit note shall be issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person. Details of Credit note to be given in monthly return. 23

24 DEBIT NOTE Particulars DebitNote [Section 34(3)] Provision After issuance, invoice is found to less the than taxable value/ tax payable on such supply Debit note to issue up to earlier of following 30th day of the September following the end of the financial year in which supply made. date of filing of relevant annual return No debit note shall be issued by the said person if the incidence of tax and interest on such supply has been passed by him to any other person. Details of Debit note to be given in monthly return. Debit note shall include a supplementary invoice. 24

25 GOODS & SERVICE TAX INVOICE RULES Supplementary Tax Invoice The supplementary tax invoice or debit/credit note shall include the similar details as mentioned in case of bill of supply and Reference of original invoice number and date The word Revised Invoice indicated prominently A consolidated revised tax invoice can be issued in respect of taxable supplies made to unregistered recipient. In case of interstate supplies, where value of supply does not exceed INR 2,50,000, a consolidated revised invoice may be issued in respect of all unregistered recipients located in a state. 25

26 GOODS & SERVICE TAX INVOICE Debit / Credit Notes RULES Invoice or debit note issued where tax is payable in accordance with provisions providing for: Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilized by reason of fraud or wilful misstatement or suppression of facts Detention, seizure and release of goods and conveyances in transit Confiscation of goods or conveyances shall prominently contain the words INPUT TAX CREDIT NOT ADMISSIBLE 26

27 REVISED TAX INVOICE/DEBIT NOTE/CREDIT NOTE 27

28 SUPPLIES DISTRIBUTED BY ISD Event Document Time of issue Supplies distributed by Input Service Distributors (ISD) other than banking company or a financial institution, including a non-banking financial company. [ Rule 7(1)] ISD Invoice or ISD Credit Note 28

29 GOODS & SERVICE TAX INVOICE RULES Invoicing in Special Cases (Cont d ) Input Service Distributor - The tax invoice issued by ISD shall contain the following details Name, Address and GSTIN of ISD Consecutive serial number Date of Issue Name, Address and GSTIN of the supplier of services, the credit in respect of which is being distributed and the serial number and date of invoice issued by such supplier Name, Address and GSTIN of recipient to whom the credit is being distributed Amount of credit distributed Signature or Digital signature of the supplier or his authorised representative. 29

30 GOODS & SERVICE TAX INVOICE RULES Invoicing in Special Cases The Rules also contain special provisions relating to: Export Supplementary tax invoice Credit/Debit note Receipt Voucher Tax invoice issued by Input Service Distributor (ISD) Insurance/Banking company or financial institution (including NBFC) Goods transportation agency Passenger transportation service Transportation of goods without issue of invoice 30

31 GOODS & SERVICE TAX INVOICE RULES Invoicing in Special Cases (Cont d ) Goods Transport Agent - Where the supplier is a goods transport agency supplying services in relation to transportation of goods by road in a carriage, tax invoice shall include any document in lieu thereof and shall contain the following details: Gross weight of the consignment Name of consignor and the consignee Registration number of the goods carriage Details of goods transported Details of place of origin and destination GSTIN of the person liable for paying tax whether as consignor/consignee/gta All other details as mentioned for tax invoice 31

32 GOODS & SERVICE TAX INVOICE RULES Transportation of goods without issue of invoice If the goods are being transported for the purpose of supply to the recipient but the tax invoice could not be issued at the time of removal of goods, the supplier shall issue a tax invoice after delivery of goods. Where goods are being transported on a delivery challan in lieu of invoice, the same shall be declared in FORM [WAYBILL]. The consigner may issue a delivery challan, serially numbered, in lieu of invoice at the time of removal of goods for transportation in the following cases, namely :- Supply of liquid gas where the quantity at the time of removal from the place of business of the supplier is not known Transportation of goods for job work Transportation of goods for reasons other than supply Such supplies as may be notified by the Board 32

33 GOODS & SERVICE TAX INVOICE RULES Transportation of goods without issue of invoice (Cont d) The delivery challan shall contain the following details : - Date and number of the delivery challan, Name, address and GSTIN of the consigner, if registered, Name, address and GSTIN or UIN of the consignee, if registered, HSN code and description of goods, Quantity (provisional, where the exact quantity being supplied is not known) Taxable value, Tax rate and tax amount central tax, State tax, integrated tax, Union territory tax or cess, where the transportation is for supply to the consignee, Place of supply, in case of inter-state movement Signature. The delivery challan shall be prepared in triplicate, in case of supply of goods 33

34 DELIVERY CHALLAN 34

35 GOODS & SERVICE TAX INVOICE RULES Transportation of goods in CKD(Completely knocked down)/skd (Semi knocked down)condition The following procedure shall be applicable for transportation of goods in CKD and SKD condition :- A complete invoice to be issued before dispatch of the first consignment; A delivery challan shall be issued for each of the subsequent consignments, giving reference of the invoice; Each consignment is to be accompanied by copies of the corresponding delivery challan along with a duly certified copy of the invoice; and The original copy of the invoice shall be sent along with the last consignment. 35

36 GST INVOICE :POSERS Case Law.1: X Ltd, a supplier of goods, have a GST liability under section 9-40 of the Australia GST Act when it supplies goods to a company Y Ltd that refuse to pay GST components included in the goods?.(invoice issued with out charging GST Separately) Case Law No.2: Mr. A, a solicitor, required to issue a tax invoice under subsection 29-70(2) of the Australia GST Act to an insurer Z Ltd, where the insurer requests a tax invoice in respect of legal services provided by the Mr. A to an injured worker of Z Ltd.? 36

37 RULES:E WAY BILL What is an e-way bill? E-way bill is an electronic way bill for movement of goods which can be generated on the GSTN (common portal). A movement of goods of more than Rs 50,000 in value cannot be made by a registered person without an eway bill. When should an e-way bill be generated? E-way bill will be generated when there is movement of goods In relation to a supply What is a supply in case of e-way bill? A supply may be Supplied for a consideration (means payment) in the course of business Supplies made for a consideration (payment) which may not be in the course of business Supplies without consideration ( without payment) Who can generate e-way bill? E-way bill must be generated when there is a movement of goods of more than Rs 50,000 in value to or from a Registered Person. Registered person or the transporter may choose to generate and carry e-way bill even if value of goods is less than Rs 50,000. Unregistered persons or his transporter may also choose to generate e-way bill. Which means eway bill can be generated by both registered and unregistered persons. However, where a supply is made by an unregistered person to a registered person, the receiver will have to do all the compliances as if he s the supplier. 37

38 RULES: VALIDITY OF E WAY BILL Distance Valid from Valid for Less than 100km Date & time at which e-way bill is generated 1 day 100km to 300km Date & time at which e-way bill is generated 3 days 300km to 500km Date & time at which e-way bill is generated 5 days 500km to 1000km Date & time at which e-way bill is generated 10 days 1000km or more Date & time at which e-way bill is generated 15 days 38

39 GST Payment of Tax 39

40 GST: PROVISIONS FOR PAYMENT OF TAX, INTEREST, PENALTY AND OTHER AMOUNTS (SEC.49) Generally, Supplier is liable to pay the tax,interest and Penalty/other amount. In Other cases like: Imports and other notified supplies, liabilities(bcd,cvd &SAD) may be imposed on the recipient under the reverse charge mechanism (RCM) By third person for example in case of : E-Commerce = Operator is responsible for TCS Contractual Payments = Government / Other notified entities are responsible for TDS 40

41 GST: ELECTRONIC TAX LIABILITY REGISTER Electronic tax liability register is a register to be maintained in the common portal of GST In Form GST PMT-01 to record all liabilities of a taxable person. Part-I is for recording return related liabilities and Part-II is for recording other than return related liabilities. 41

42 GST: ELECTRONIC TAX LIABILITY REGISTER DEBITS (i) amount payable towards tax, interest, late fee or any other amount payable as per the return filed by the said person; (ii) amount of tax, interest, penalty or any other amount payable as determined by a proper officer in pursuance of any proceeding under the Act or as ascertained by the said person; (iii) amount of tax and interest payable as a result of mismatch under section 42 or section 43 or section 50; or (iv) any amount of interest that may accrue from time to time. CREDITS (i) Electronic credit ledger (ii) Electronic cash ledger (iii) Relief given by the appellate authority (iv) Reduction in penalty (if any) 42

43 GST: Electronic Credit Ledger Every claim of Input Tax Credit under the Act shall be credited to the electronic credit ledger maintained in Form GST PMT-02. CREDITS Input tax credit balance uploaded from return filed under earlier laws would be auto populated in this ledger; ITC would be of stock of Inputs, Semi-finished goods & Finished goods on the relevant date, from which Taxpayer becomes liable; ITC on inward supplies from Registered Tax Payers; ITC distributed from Input Service Distributor (ISD); Permissible ITC on stock held upon conversion from composition scheme; ITC eligible on payment made on reverse charge basis. 43

44 GST: Electronic Credit Ledger DEBITS Payments of TAX under GST; Payments of Interest; Payments of Penalty; Other Payments; Towards claim for refund of unutilized amount; (FORM GST PMT-2A) 44

45 GST: ELECTRONIC CASH LEDGER Electronic cash ledger is a register to be maintained in the common portal of GST for each registered taxable person in Form GST PMT-05 To record deposit of tax under GST, To record deposit of interest, To record deposit of penalty and other amounts, Utilization thereof and refund. 45

46 GST: ELECTRONIC CASH LEDGER DEBITS (i) Amount payable towards tax, interest, late fee or any other amount payable CREDITS (i) Payment made through challan on receipt of CIN (ii) Towards claim for refund of any amount (ii) Amount deducted under Section 46(TDS) and claimed in Form GSTR-2 (iii) Amount collected under Section 56(TCS) and claimed in Form GSTR-2 (iv) Reversal of amount debited earlier on account of final rejection of refund (Form GST PMT-03) 46

47 GST: PAYMENT IN ELECTRONIC CASH LEDGER Any person, or a person on his behalf, shall generate a challan in FORM GST PMT-06 and enter the details of the amount to be deposited by him towards tax, interest, penalty, fees or any other amount. The payment can be made through the following modes : 1. Internet Banking through authorized banks 2. Credit card or Debit card 3. NEFT/ RTGS 4. Over the Counter payment (OTC) through authorized banks for deposits up to ten thousand rupees per challan per tax period, by cash, cheque or demand draft. However, this amount restriction shall not apply to deposits made by the Government or notified persons, or by the proper officer authorized for recovery or during investigation / enforcement proceedings. The challan in FORM GST PMT-06 shall be valid for a period of fifteen days. Payment made by a person who is not registered under the Act, shall be made on the basis of a temporary identification number generated through the Common Portal. 47

48 GST: PAYMENT-FORMS PAYMENT FORMS DESCRIPTION Form GST PMT-01 Maintenance of Electronic Tax Liability Register.(All amounts payable by taxable person will be debited to the said register.) Form GST PMT-02 Form GST PMT-03 Maintenance of Electronic Credit Ledger. (Every claim of input tax credit under the GST Law will be credited to this Ledger.) Order by proper officer rejecting refund ( Any rejection of refund of any unutilized amount from the electronic credit/cash ledger) Form GST PMT-04 Discrepancy in Electronic Credit Ledger (The registered person shall, upon noticing any discrepancy in his electronic credit ledger, communicate the same to proper office through the GSTN Portal) 48

49 GST: PAYMENT-FORMS Continued. PAYMENT FORMS DESCRIPTION Form GST PMT-05 Form GST PMT-06 Form GST PMT-07 Maintenance of Electronic Cash Ledger (The amount deposited will be credited to this ledger and the payments made towards tax, interest, penalty, fee or any other amount will be debited to this ledger.) Challan shall be generated by registered taxable person or any other person on his behalf. The Challan so generated shall be valid for a period of 15 days. Form of representation in case bank account of the concerned taxable person is debited but Challan Identification Number (CIN) is not generated or not communicated after generation. 49

50 GST RETURNS 50

51 RETURN-BASIC FEATURES Self-assessment of tax liability by the taxpayer Common e-return for CGST, SGST, IGST. Separate returns for different categories of taxpayers Returns by a normal / casual taxpayer to be filed in sequential manner with different cut-off dates to allow auto-population of return & automated matching of invoices. Payment of due tax is must for filing valid return Returns can be submitted with short payment but shall be treated as invalid not taken into account for invoice matching & inter-government fund settlement. Provision for filing revised information Differential Tax liability to be captured through Debit Note/ Credit Note/ Supplementary invoices / correction mechanism. 51

52 GST: RETUN FILING Pre - GST Regime Need not file all Sales Transactions online (Except some States) Post - GST Regime All your Invoices details to be filed with GST Every month(not Scan copy) Credit availed based on Purchase Invoice Credit received ONLY when Vendor pays taxes and files Monthly Returns One Return per month/ period Min. Three Returns every month Follow-up with vendor mostly for C Forms Multiple Law Compliance Follow-up with vendor every month for uploading of supplies after payment of tax. Single window filing 52

53 N ORMAL /R EGULAR T AX P AYERS - M ONTHLY R ETURN Action Return Upload details of outward supply on or before 10 th of following month GSTR-1 Data will be auto populated in 2A of Recipient tax payer GSTR-2A Actions of Accept, Reject or Modify has to be taken Additions can be made Return needs to be filed after 10 th and on or before 15 of following month GSTR-2 Rejections, modifications and additions in GSTR-2 will be made available to supplier in 1A Supplier has to take action by 17th GSTR-1A Auto-populated return will be available for submission along with the payment on 20th GSTR-3 53

54 GST RETURNS, PERIODICITY AND DUE DATES Section Return Type For Periodicity Due Date 37 GSTR-1 Outward Supplies Made by Tax payer. The "Detail of Outward supplies" shall include invoice, debit notes, credit notes and revised invoices Monthly 10 th of Next Month. recipient of supplies, can either accept or reject the detail so communicated on or before 17th of the next month 38 GSTR-2 Inward Supplies Made by Tax payer. The details of inward supplies added, corrected or deleted by the recipient in his FORM GSTR-2 shall be made available to the supplier electronically in FORM GSTR-1A Monthly 15 th of Next Month. supplier may either accept or reject the modifications made by the recipient and FORM GSTR-1 furnished by the supplier shall stand amended to the extent of modifications accepted by him. 39(1) GSTR-3 Tax Return (other than Composition & ISD Dealer) Monthly 20 th of Next Month 39(2) GSTR-4 Composition Dealer Quarterly 18 th of Next Month 54

55 GST RETURNS, PERIODICITY AND DUE DATES Section Return Type For Periodicity Due Date 39(4) GSTR -6 ISD Monthly 13 th of Next Month 39(3) GSTR 7 Return of TDS Monthly 10 th of Next Month 44 GSTR-9 Annual Return Annually 31 st December of Next FY. 39(5) GSTR-5 Periodic Return by Non-Resident Foreign Taxpayer Within 20 Days after the end of Tax period or within 7 days after the last date whichever is earlier? 55

56 HSN CODES & SERVICE ACCOUNTING CODE HSN Code for goods - in invoice level details 4-digit HSN Code mandatory for taxpayers having turnover above Rs. 5 Crore in preceding FY 2-digit HSN Code for taxpayers with turnover between Rs. 1.5 Crore & Rs. 5 Crore in preceding FY - optional in 1st Year and mandatory from 2nd Year 8-digit HSN Code mandatory for exports & imports Accounting Codes for services in invoice level details Mandatory for those services for which Place of Supply Rules are dependent on nature of services Mandatory for exports & imports Service Accounting Code to be prefixed with s for differentiating from HSN 56

57 MATCHING OF ITC SEC 42 After the due date of furnishing the form GSTR 3 Following details to be matched (a) GSTIN of the supplier (b) GSTIN of the recipient (c) Invoice/Debit Note date (d) Invoice/Debit Note number (e) Taxable value (f) Tax amount 57

58 MATCHING OF ITC SEC 42 B2B supply information given by the supplying taxpayer in GSTR-1 will be autopopulated into GSTR-2 of the counter-party purchaser Purchasing taxpayers will be allowed to add invoice details in GSTR-2 & avail credit if he is in possession of valid invoice & have received supply of goods or services Counterparty registered taxpayers shall have a 2-day window to reconcile invoice information among themselves prior to filing of GSTR-3 Credit availed on unmatched invoices shall be auto-reversed in the next to next return period (e.g. mismatched ITC for April to be auto-reversed in return for June) 58

59 FILING OF RETURN To be filed by taxpayer at GST Common Portal either: by himself logging on to the GST System using his own user ID & password; or through his authorized representative using the user Id & password (allotted to the authorized representative by the tax authorities), as chosen at the time of registration, logging on to the GST System Filing may be done through TRPs / FCs/GSP also Filing may be done either directly or by using Applications developed by accounting companies / IT companies which will interact with GST System using GSP. 59

60 NORMAL/REGULAR TAX PAYERS-MONTHLY RETURN GSP (34) 60

61 ASP/GSP: FOR COMPLIANCES UNDER GST For successful filing of returns, all records will have to be maintained in the ERP/Tally/Other Software's. GSP and ASP will provide related services. ASP will be responsible for developing the necessary software bridge. GSP will be responsible for the proper uploading of invoices and filing of returns from technical perspective as vanilla SAP output will be incompatible with GSTN accepted formats. ACTION: Assesse to evaluate and initiate the process of identification and appointment of GSP and ASP 61

62 REVISION Revision of information permitted Changes in Tax liability / ITC amount to be handled through Ø Debit- Credit Notes Revision of supply invoices Post sales discount Volume discount Amendments / Corrections 62

63 GST E-COMMERCE OPERATOR 63

64 E-COMMERCE: Some litigation VAT /CST VAT/CST Kerala VAT Dept. VAT on goods hosted on web-portals Demand quashed by Kerala HC [Filpkart Internet (P) Ltd. v/s State of Kerala W P 5348 & 6916 of 2015 dt ] Karnataka VAT Dept. VAT on goods sold from godowns of e-trailers. 64

65 E-COMMERCE: PRESENT SERVICE TAX LAWS Rendition of services Place of Provision of Services Rules, 2012 Point of taxation Rules, 2011 Valuation Rules- Service Tax (Determination of Value) Rules, 2006 Cenvat Credit Rules 65

66 E-COMMERCE:SOME OTHER LEVIES Entry tax Some states like WB, Orissa charge E-commerce companies additional taxes for delivering product to customers in their states. Equalization levy On income they earn on a/c of soliciting advertisements and from Indian advertisers 66

67 CURRENT MODELS IN E-COMMERCE Principal to Principal Model 67

68 CURRENT MODELS IN E-COMMERCE Principal to Agent Model 68

69 CURRENT MODELS IN E-COMMERCE Aggregator Model 69

70 CURRENT MODELS IN E-COMMERCE Inventory Model 70

71 CURRENT MODELS IN E-COMMERCE Open Market Place Market Model (OMM) 71

72 E-COMMERCE :DEFINITONS Sec 2(44) - electronic commerce means supply of goods and/or services including digital products over digital or electronic network Sec 2(45) - electronic commerce operator means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce Issue - Does Tele-shopping fall under the term electronic network? 72

73 E-COMMERCE :PLACE OF SUPPLY Services Provided by E-comm Operator to supplier Place of Supply of Service Gen Rule will apply Always location of Service receiver since compulsory registration. Services Provided by E-comm Operator to supplier of transportation of goods Place of Supply of Service Sec 12(9) of IGST Act location of Service receiver(if registered) or location at which such goods are handed over for their transportation Supply of goods/provision of Service by supplier to customer For Goods: Place of Supply - Where movement of goods terminates for delivery. For Services: to registered person(b2b) : Registered address of recipient : to unregistered person(b2c): Address on record of person 73

74 E COMMERCE OPERATOR- LIABLE TO TAX [SECTION 9(5)] Central State Govt on council s recommendation, notify and specify categories of services tax to be paid by E-commerce operator Provided if operator does not have physical presence in taxable territory -Any person representing the Operator is liable to pay GST Provided further where operator does not have a representative in such a territory operator shall appoint a taxable person in the taxable territory for the purposes of paying tax 74

75 E-COMMERCE OPERATOR E-commerce operator required to collect tax at source (TCS) at the rate not exceeding 1% for the supplies made through it by other suppliers. Suppliers can take credit of TCS paid by e-commerce operator. E-commerce operator shall be liable to pay GST in respect of notified services supplied through it. E-commerce Operator submit statement to Government every month. Annual Return has to be filed before 31st December of next Financial Year. This return would include supplies made, supplies returned and TCS collected. Matching of statement of e-commerce operator and credit taken by suppliers. 75

76 E-COMMERCE OPERATOR Deletion of deemed supplies by aggregators: The concept of aggregators and deemed supplies of branded services by an aggregator under his own brand name or trade name has been deleted under the Revised Model GST Law. Electronic Commerce Operator liable for specified services: Electronic Commerce Operator has been made liable to pay tax on certain specified categories of services, as may be notified. In case Electronic Commerce Operator does not have physical presence in the taxable territory, his representative in taxable territory shall be liable to pay tax. Further in case he does not even have a representative in taxable territory, he shall appoint a person in taxable territory for the purpose of paying tax. 76

77 E-COMMERCE OPERATOR TCS on net value of taxable supplies: - Electronic Commerce Operator will be liable to collect tax at source on the net value of taxable value of supplies made through its portal. Net value of taxable supplies shall mean the aggregate value of taxable supplies of goods or services, other than services for which Electronic Commerce Operator is itself liable to pay tax made during a month by all registered taxable persons reduced by the aggregate value of taxable supplies returned to the suppliers during the said month. 77

78 THANKS!! ANY QUESTIONS? CONTACT FOR POST SESSION QUERY: CA. (Dr.) Shailendra Saxena Senior Advisor JLN US & Co. Cell: