Accounting Entries in case GST paid under Reverse Charge

 Accounting Entries in case GST paid under Reverse Charge  Accounting Entries in case GST paid under Reverse Charge, Uncategorized
Sep 262017
 

Accounting Entries in case GST paid under Reverse Charge

Features of reverse charge mechanism of payment of tax on certain supply of services under GST:

The bulleted points of the above discussion are as below:

  • Reverse charge is a mode of collection of tax by government and not a different tax.
  • If goods and / or services are purchase from the registered taxable person – reverse charge levy can be effected only when goods and / or services traded are one of the specified items. Till date no such items are specified by central government.
  • Goods and / or services on which tax is payable under reverse charge are not exempted goods and / or services.
  • In case such goods are supplied by registered taxable person tax invoice shall be prepared by such supplier with the mentioned of the words – “TAX IS PAYABLE ON REVERSE CHARGE BASIS”
  • In case goods and / or services are supplied by unregistered person tax invoice will be generated by recipient taxable person under section 31(3)(f).
  • ITC of tax paid under RCM (reverse charge mechanism) will allowed once tax and value of supply is paid.

With the above background the accounting entry that can be passed is given below:

Accounting entry at seller end:

Whether supply is made by registered person or unregistered person –

XYZ party a/c                Dr

To Sale (under RCM) a/c

Accounting entry at purchaser end:

Mode 1 : Purchase made from registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by supplier of goods / services
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:

Purchase:

Purchase a/c                  Dr

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

To ABC Party a/c                 (For material purchase)

To CGST (under RCM)          (For CGST)

To SGST (under RCM)          (For SGST)

Availing ITC after fulfilling conditions:

ITC of CGST                  Dr

ITC of SGST                  Dr

To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

Mode 1 : Purchase made from un-registered person:

  • Tax will be paid by receiver of goods
  • Tax Invoice shall be prepared by receiver of goods / services
  • No question of issuance of bill of supply as supply is not of exempted goods
  • ITC will be available on tax paid
  • Payment voucher shall be prepared for every payment made

Accounting entry:

Purchase:

Purchase a/c                  Dr

To ABC Party a/c                       (For material purchase)

 

Issue of tax invoice:

Provisional ITC of CGST (under RCM)

Provisional ITC of SGST (under RCM)

Memorandum sale a/c – crated only for the purpose of creating GST liability

To CGST (under RCM)    (For CGST)

To SGST (under RCM)    (For SGST)

To Memorandum sale a/c – crated only for the purpose of creating GST liability

 

Availing ITC after fulfilling conditions:

ITC of CGST                  Dr

ITC of SCST                   Dr

To Provisional ITC of CGST (under RCM)

To Provisional ITC of SGST (under RCM)

GSTR 2 & 2A

 GSTR 2 & 2A  GSTR 2 and 2A
Sep 252017
 

GSTR 2 & 2A

Role of GSTR -2 for the registered dealer:

GSTR – 2 is a return document used by GST portal for giving Input Tax Credit in GSTR – 3 to the dealer. Hence, it is a very important document and due care should be maintained in filing this form so that we get ITC for which we are eligible correctly.

Inter – linking of GSTR 2 and GSTR 2A:

GSTR 2 and 2A are inter-link document. GSTR 2 can’t be filed without all information is captured in GSTR – 2A. In case any purchases are made from registered dealer, same will be auto populated in GSTR – 2A after due date of filing of GSTR – 1 is over. Any missing or incorrect information in GSTR – 2A may be rectified in GSTR – 2 in case of these dealers. Thus, GSTR -2 document can be filed only after due date of filing GSTR -1 is over.

Who to file GSTR -2A & 2 under section 38(1) – Details of inward supplies:

PART A – Filing of fresh return:

Every registered person, other than:

  1. An Input Service Distributor or
  2. A non-resident taxable person or
  3. Composition supplier under section 10 or
  4. A person paying tax under the provisions of section 51 (TDS deductor) or
  5. A person paying tax under the provisions of section (TCS deductor) 52,

shall verify, validate, modify or delete, if required, the details relating to outward supplies and credit or debit notes communicated in GSTR – 2A to prepare:

  • The details of his inward supplies and
  • Credit or
  • Debit notes and
  • may include therein, the details of inward supplies and credit or debit notes received by him

in respect of such supplies that have not been declared by the supplier in GSTR 1.

PART B – Rectification of return already filed:

Any registered person, who has furnished the details under sub-section (2) for any tax period and which have remained unmatched, shall, upon discovery of any error or omission therein, rectify such error or omission in the tax period during which such error or omission is noticed in such manner as may be prescribed, and shall pay the tax and interest, if any, in case there is a short payment of tax on account of such error or omission, in the return to be furnished for such tax period.

Errors or omission that can be rectified:

  1. Section 42: Discrepancy observed in the inward supply claimed by registered dealer with the corresponding details of outward supply furnished by corresponding registered person in the same tax period or earlier tax period.
  2. Duplication of ITC claimed
  3. Section 43: The details of every credit note relating to outward supply with corresponding reduction in claim for ITC by corresponding registered person.

Time limit for rectifying such errors or omission:

Provided that no rectification of error or omission in respect of the details furnished under sub-section (2) shall be allowed after furnishing of the return under section 39 for the month of September following the end of the financial year to which such details pertain, or furnishing of the relevant annual return, whichever is earlier

Form and manner of furnishing details of inward supplies:-

  1. Every registered person required to furnish the details of inward supplies of goods or services or both received during a tax period shall, on the basis of details contained in Part A, Part B and Part C of FORM GSTR-2A, prepare such details and furnish the same in FORM GSTR-2.
  2. Every registered person shall furnish the details of any mismatch electronically in FORM GSTR-2.
  3. The registered person shall specify the inward supplies in respect of which he is not eligible, either fully or partially, for input tax credit in FORM GSTR-2.
  4. The registered person shall declare the quantum of ineligible input tax credit on inward supplies which is:
    1. Relatable to non-taxable supplies or
    2. For purposes other than business and cannot be determined at the invoice level in FORM GSTR-2.
  5. The details of inward supplies of goods or services or both furnished in FORM GSTR-2 shall include the-
    1. Invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons;
    2. Import of goods and services made; and
    3. Debit and credit notes, if any, received from supplier

Deadline for filing GSTR 1 extended to 10th October 2017

 Deadline for filing GSTR 1 extended to 10th October 2017  Deadline for filing GSTR 1 extended to 10th October 2017
Sep 102017
 
Deadline for filing GSTR 1 extended to 10th October 2017
S.No.
 GSTR Form No.
Tax Period
Revised Due Date
1
GSTR-1
July 2017
10-Oct-2017
1.1
GSTR-1
(Turnover more than 100 crore)
July 2017
3-Oct-2017
2
GSTR-2
July 2017
31-Oct-2017
3
GSTR-3
July 2017
10-Nov-2017
4
GSTR-4
July-September 2017
18-Oct-2017 (no change)
5
GSTR-6
July 2017
13-Oct-2017

 

Accounting entry in case of export & import of goods under GST

 Accounting entry in case of export & import of goods under GST  Accounting entry in case of export & import of goods under GST
Sep 082017
 

Accounting entry in case of export & import of goods under GST

Accounting entry in case export:

Accounting entry for exports of goods is based on your choice of procedure adopted for taxation of supplies. Export supplies under GST are Zero rated. Under section 16 of the act a taxable supplier have either of the following two ways for taxing export supplies –

Option 1:

He may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit.

Under this mechanism exports needs to pay any tax at the time actual exports of goods and / or services and hence a simple sale entry will be made in the account.

However, what every inputs he have used for such supplies he might have pay GST on such inputs which may be claimed by him appropriate government by debiting appropriate authority accounting and crediting relevant input expense account as expenses to that extent are deducted.

Option 2:

He may supply goods or services or both, subject to such conditions, safeguards and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder

Under scheme would work as follows

Step 1.           Pay tax at the time of export @ relevant IGST rate as application to goods / service.

Step 2.           For paying IGST on such exports exported may utilized ITC available on inputs used for procuring / manufacturing such goods / service for exports.

Step 3.           When export is done such exporter may claim refund of export duty from appropriate government.

Accounting entries will be passed accordingly

Accounting entry in case of import of goods

Accounting treatment of tax paid on import of goods co-exists with the eligibility of importer to claim ITC on goods import by him. In case importer is eligible to claim ITC accounting treatment for the same may be given as under:

At the time of payment of IGST on import:

Advance IGST on import a/c                   Dr

To Bank a/c

 

At the time of receipt of goods in store:

Import Purchase a/c                               Dr

BCD a/c                                                Dr

Freight on import a/c                              Dr

Other import expenses a/c                      Dr

IGST on import                                      Dr

To XYZ inc party a/c

To Import expenses – advance a/c

To advance IGST on import

 

GSTR – 1: Return of Outward supply

 GSTR – 1: Return of Outward supply  GSTR – 1: Return of Outward supply, Uncategorized
Sep 072017
 

GSTR – 1: Return of Outward supply

Why to file GSTR 1:

The need for filing GSTR 1 arises from section 37 of the CGST act and same is reproduced below:

Every registered person, other than:

  • An Input Service Distributor,
  • A non-resident taxable person and
  • A person paying tax under the provisions of section 10 or
  • A person paying tax under section 51 (Person deducting TDS) or
  • A person paying tax under section (Person collecting TCS) 52,
  • A person mentioned under section 14 of IGST act (supplier of online information and database access or retrieval services).

shall furnish, electronically, in such form and manner as may be prescribed, the details of outward supplies of goods or services or both effected during a tax period

  • on or before the 10th day of the month succeeding the said tax period and

such details shall be communicated to the recipient of the said supplies within such time and in such manner as may be prescribed:

Provided that the registered person shall not be allowed to furnish the details of outward supplies during the period from the 11th day to the 15th day of the month succeeding the tax period:

Provided further that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein. Hence, commissioner has extended the time limit for the months of July and August months

Provided also that any extension of time limit notified by the Commissioner of State tax or Commissioner of Union territory tax shall be deemed to be notified by the Commissioner

Hence, all taxable suppliers are liable to file GSTR 1 except those mentioned above including those cases where there is no sales in the relevant taxing month.

Meaning of details of outward supplies:

“details of outward supplies” shall include details of:

  1. Invoices,
  2. Debit notes,
  3. Credit notes and
  4. Revised invoices

Issued in relation to outward supplies made during any tax period

Importance of GSTR 1:

Normally every registered person required to furnished / validate following returns:

Return Forms GSTR – 1 GSTR – 1A GSTR – 2 GSTR – 2A GSTR -3
Activity recorded Outward supply Auto Drafted Inward Supply Auto Drafted GST Payment
Outcome GST liability Revise return ITC allowed Reconciled Monthly return
Basis of preparation Sales Invoice issued to recipient / consumer GSTR 2, 4 & 6 Part A, Part B and Part C of FORM GSTR-2A GSTR -1 of the corresponding suppliers from whom purchases are made GSTR 1 and GSTR 2

Thus, every other return except GSTR 1 is auto populated and needs to be validated by taxable registered person. Thus, every care must be made before filing the form as it would directly impact our taxable liability under
GSTR – 3.

When to file GSTR 1 (As extended vide notification no 29/2017):

Forms Notification number For July 2017 For August 2017 From Sep. Onwards
GSTR 1 18/2017 – Central Tax 1st to 10th September Up to 5th October 1st to 10th of next month

Classification of invoices for recording of transaction in GSTR 1:

All issued invoices during the tax period must be classified as given below for correct and complete recording of all transaction in GSTR 3:

Particulars Invoices
Classification of invoices Intra-state supply Inter-state supply Extant of details required
B2B ✓ ✓ Invoice wise and tax rate wise
Export Invoice x ✓ Invoice wise and tax rate wise
B2C large x Invoice value > Rs. 2.5 lacs Invoice wise, tax rate wise and state wise
B2C ✓ Invoice value < Rs. 2.5 lacs Consolidated

Modes of filing GSTR 1:

There are two modes of filing GSTR 1 as explained below:

  1. Online mode: The facility of filing GSTR 1 is provided on gst.gov.in online. In case where invoices in a particular month are upto 500 in number this facility can be used. However, numbers of invoices are more than 500 it is batter to prepare return in off line mode.
  2. Off line mode: You can prepare GSTR 1 offline and subsequently same can uploaded on GST portal subsequently. GSTR data can be prepared offline in any of following ways:
    1. Offline utility downloaded from GST portal.
    2. With the help of excel utility
    3. With the help of 3rd party vendor
    4. Through GSP

How to file GSTR 1:

Section Table no Details to be file
B2B 4A4B4C6B

6C

 Used for entering taxable outward supplies to registered person.
B2C Large 5A5B Used for entering inter-state taxable outward supplies to unregister dealer having invoice value > Rs 2.5 lacs.
Debit / Credit Note 9A9B 9A – Debit note / Credit note issued to registered dealer.9B – Debit note / credit note issued to unregistered dealer.
Export 6A Details of export supplies.
B2C others 7 Taxable supplies net of debit note and credit notes to unregistered dealer not cover in 5A and 5B.
Nil rated, Exempted and non GST supply 8A8B8C8D Details of Nil rated, Exempted and non GST supply.
Advance received 11A(1)11A(2) Advance received during the tax period.
Adjustment of advance 11B(1)11B(2) Advance received during earlier tax period being adjusted from  supplies in current tax period.
HSN wise summery 12 HSN wise summery
Other information 13 Details of any of the following documents issued:i.        Invoices for outward suppliesii.        Invoices for inward supplies from unregistered personiii.        Revised invoices

iv.        Debit notes

v.        Credit notes

vi.        Receipt voucher

vii.        Payment voucher

viii.        Refund voucher

ix.        Delivery challan for job work

x.        Delivery challan for supply on approval

xi.        Delivery challan in case of liquid gas

xii.        Delivery challan in cases other than by way of supply

 

Extension in date of filing GST Returns for July 17 and August 17

 Extension in date of filing GST Returns for July 17 and August 17  GST Return Filing Due dates
Sep 062017
 
Extension in date of filing GST Returns for July 17 and August 17
S.No. GSTR Form No. Activity July 2017 August 2017 Comments
1
GSTR 3B
Summary and Payment
25-08-2017
20-09-2017
 The return for the month of July
17 can still be filed without attracting late fee
2
GSTR-1
Outward Supply
10-09-2017
05-10-2017
 An official notification
is awaited for the announcement of these new dates, however the same has
been made public via the Twitter handle GST@GoI
3
GSTR-2
Inward Supply
25-09-2017
10-10-2017
4
GSTR-3
Summary
30-09-2017
15-10-2017
5
GSTR-6
Input Service Distributor
(ISD) Return
08-Sep-17
23-Sep-17
 The dates for these returns have been notified vide notification no. 26/2017-Central Tax. However, we expect
these deadlines to move forward.

Courtesy: VERITA Knowledge Management Team

Frequently Asked Question on GST – 2

 Frequently Asked Question on GST – 2  Frequently Asked Question on GST, Uncategorized
Aug 302017
 

Business Details

1. I am unable to change my State. Why?

GST Registration is state-wise and since you have selected the state in PART A of the Registration Application, you cannot change it.

2. I don’t know my Ward/Circle/Sector No.

Please refer your state website, a tax return preparer (TRP), or your jurisdictional officer.

3. I don’t know my Center Jurisdiction.

Please refer to https://www.aces.gov.in/STASE/ui/jsp/common/statelocation.do

4. I want to/don’t want to Opt for Composition. How do I make sure my choice is exercised?

There is a YES/NO button to choose whether you wish to Opt for Composition or not. Please make the appropriate choice.

5. What is my Date of Commencement of Business?

The date of commencement of business is the day you officially started supplying/receiving goods and/or services.

Promoters/Partners

1. How many Promoters/Partners/Directors can I add in the application?

A maximum of 10 Promoters/Partners/Directors can be added in the Registration Application. On case of a Proprietor, there will be always only one Promoters/Partners/Director.

2. One (or more) of the Promoters/Partners/Directors is not an Indian National and does not have a PAN Card which is a mandatory field. How do I add his/her details?

For foreigners, passport details are mandatory and PAN details are optional. To facilitate the same, there is a YES/NO check-box that asks

Are you a citizen of India?

If you select NO, passport details will become mandatory and PAN details will become optional.

3. One (or more) of the Promoters/Partners/Directors does not have a residential address in India but an Indian residential address is mandatory. What do I do?

Residential address does not need to be in India.

4. Can more than one Promoters/Partners/Director be an Authorised Signatory?

Yes, you can add up to 10 authorised signatories.

5. Do I need to upload passport photographs of ALL the Promoters/Partners/Directors?

Yes, you need to upload passport photographs of all the Promoters/Partners/Directors whose details you are adding in the Registration Application. Further, each passport photograph must be in JPEG format and not more than 100 KB in size.

Authorised Signatory

1. Is it mandatory to select a Primary Authorised Signatory?

You cannot submit your New Registration Application without selecting a Primary Authorised Signatory.

2. How many Authorised Signatories can I add in the Registration Application?

A maximum of 10 authorised signatories can be added.

3. Details of the Authorised Signatory are already prefilled based on entries made in the previous section (Promoters/Partners) however I want to add more Authorised Signatories.

If you selected one or more Promoters/Partners/Directors as authorised signatories, their details will be auto populated in the Authorised Signatory section to avoid duplication of work by you. If you wish to add more authorised signatories, you can simply select the ADD NEW option available at the end of the page. You can also view the list of authorised signatories by clicking on SHOW LIST. Don’t forget, you can only add a maximum of 10 authorised signatories.

4. Can more than one Promoters/Partners/Director become the Primary Authorised Signatories?

No, you can have one and only one Primary Authorised Signatory.

5. Can I add company employees other than promoter/director/partner/proprietor as Authorised Signatories?

Yes, you can.

6. Do I need to upload photographs and Proof of Appointment of ALL the authorised signatories?

Yes.

Authorised Representative

1. I don’t need/want an Authorised Representative.

Authorised representatives are not mandatory. If you do not wish to add, you can simply click on SAVE & CONTINUE and move on to the next section

Principal Place of Business

1. My head office/corporate office, which I assume should be my Principal Place of Business, is in a different state but I am unable to change the state when filling in the Registration Application.

Principal place of business needs to be located within the state where you are applying for the new GST registration. Please enter the details of the first/existing place of business within the state where registration is sought.

Note: Principal place of business can be amended at a later date also.

2. There are fields for Latitude and Longitude in the Registration Application. What are they for?

This is an optional field and is there for the purpose of providing as a feature to add additional details of your place of business (principal or additional).

3. I don’t have an office e-mail address yet, can I give an alternate e-mail address now and update it later once it has been created?

Yes, you can.

4. My principal place of business is a co-working space. What should I select as Nature of Possession of Premises?

If your principal place of business is a co-working space, please select Shared as Nature of Possession of Premises unless you have a valid (registered) sub-let agreement with the provider of the co-working space.

5. I am performing multiple business activities at my principal place of business. Can I select more than one nature of business activity?

Yes, you can select any number of options from the given list as long as you select a minimum of one.

6. My Principal Place of Business was leased by my father/mother many years ago through pagdi system and he/she has since passed away so I don’t have a lease deed my name or in the name of my business. The landlord is also unwilling to register a fresh lease in my name. What should I do?

In this specific case, a bank statement with the business address will suffice.

Additional Places of Business

1. How many additional places of business can I add in the Registration Application?

Five Hundred.

2. I am unable to add additional places of business because the ADD NEW button is disabled.

Please press the BACK button and go back to the previous section (principal place of business). At the bottom of the page there is an option – Have Additional Places of Business with a YES/NO check-box. Select YES and click on SAVE & CONTINUE. Now you will be able to add the additional places of business.

3. Do I need to attach documentary proof of Nature of Possession of Premises for ALL the additional places of business?

No.

4. I am performing multiple business activities at one of my additional places of business. Can I select more than one nature of business activity for the same?

Yes, you can select any number of options from the given list as long as you select a minimum of one.

Goods and Services

1. Is it mandatory to provide HSN/SAC Codes?

You are required to provide a minimum of just one goods or service (one HSN or SAC code).

2. I supply multiple goods and/or services but the Registration Application allows specifying the top 5 goods and top 5 services. Does this mean I can only supply 5 goods and 5 services?

No, there is no limit to the number of goods you can supply or the number of services you can provide under a single registration.

3. Do I need to take an additional registration if I want to supply more than 5 goods and/or services?

No, you need not take an additional registration if you want to supply more than 5 goods and/or services.

4. I don’t know the HSN Code for any of the products I supply. What do I do?

The Goods and Services section of the new registration application has a built-in online utility that will help you select the HSN Code. For the Goods section, simply start typing the type of product under Search HSN Chapter by Name or Code and there will be a dropdown from which you can select the relevant chapter. Once you have selected the chapter, start typing in the Search HSN Code field and select the type of product. The HSN Code of the goods will be auto populated in the application. You can repeat the same if you want to enter details for more than one goods.

5. How do I search for SAC Codes?

The Goods and Services section of the new registration application has a built-in online utility that will help you select the SAC code. For the Services section, simply start typing the type of service and there will be a dropdown from which you can select the relevant service. Once you have selected the service, the SAC Code of the service will be auto populated in the application. You can repeat the same if you want to enter details for more than one service.

6. I am entering the name of the goods/service but the system is unable to find it.

Please make sure you type slowly. If the online utility can’t find the goods/service, simply move on to the next section if you have added at least one goods/service since there are more than 17000 codes and it may be difficult for you to find the exact code on your own. If you supply only one goods, please contact a tax professional or your jurisdictional officer.

If you provide a single service, you can refer to the CBEC website here (add link) to choose the appropriate SAC since there are only 127.

Bank Accounts

1. Is it mandatory to add a bank account?

Yes, you need to add at least one bank account.

2. How many bank accounts can I add?

You can add a maximum of 10 bank accounts.

3. My business bank account is not open yet. Can I add an alternate bank account?

Yes, you can add your personal bank account and update it once your business bank account is open.

4. What document can I upload as a supporting document for proof of bank account?

You can provide your monthly bank statement or the first page of your passbook.

5. I don’t know my branch’s IFSC Code. Where can I find it?

There is an online utility provided in the application in the Bank Accounts section to help you find your branch’s IFSC Code. Look for ‘Click here to find your bank’ and click on ‘here’.

6. I cannot see my bank’s branch in the online utility provided. Is there any other way to find the IFSC Code?

Your branch IFSC code is also mentioned in the account’s cheque book on every cheque.

State Specific Information

1. Is it mandatory to enter State Specific Information?

No, it is not mandatory if you do not have any of the requested registrations.

2. If I have one or more of the requested registrations, is it then mandatory to fill in the State Specific Information?

While the system will permit you to move to the next section since it is an optional field, you are strongly advised to fill any such details to ensure you can comply with the self-verification before submitting your application.

Verification and Submission

1. I am applying for registration in State X but my physical location is State Y. Which location should I mention in Place in the Verification section of the new registration application form?

You need to mention your physical location (City/Town/Village and State)

2. Buttons other than SUBMIT WITH DSC are disabled?

Please note DSC is mandatory for (i) Public Limited Company, (ii) Private Limited Company, (iii) Unlimited Company; (iv) Foreign Company; (v) LLP; (vi) Foreign LLP; (vii) Public Sector Undertaking. In such cases, all other modes of submission will be disabled by the system.

3. My business is not a Company or an LLP. Can I still submit my new registration application with a DSC?

Yes, anyone can submit their registration application using a DSC provided it is an un-expired and unrevoked, PAN-based Class II or Class III DSC.

4. The options to SUBMIT WITH DSC and SUBMIT WITH E-SIGN are both disabled even though I have selected the Authorised Signatory and Place?

Have you checked the check-box under Verification? If not, please do.

5. I have opted to SUBMIT with E-SIGN but I am not getting the OTP despite multiple attempts. What should I do?

This happens in case your current mobile number is different from the number registered with Aadhaar authority (UIDAI). Since E-Sign uses UIDAI data for authentication, the OTP will only go to the mobile number registered with UIDAI.

In such a case, you will have to update your mobile number with UIDAI or use the SUBMIT WITH DSC option.

6. I have submitted my registration application successfully and I have received an Acknowledge Reference Number (ARN). Now what?

You will receive a response from the tax authorities within 3 common working days on the status of your application. It will either be approved or the assessing officer will raise a Notice Seeking Clarification in case they have any queries w.r.t. the application and/or documents provided. Either way, it will be communicated to you via e-mail.

7. Can the Tax Official reject my Registration application?

Your application cannot be rejected after the first assessment as principle of natural justice mandates that the you get an opportunity to be heard, hence, the Tax Official may only raise a Notice Seeking Clarification to provide you with the said opportunity. If your response is satisfactory, your application will be approved. If you provide an unsatisfactory response or fail to respond, your application will be rejected. You have seven (7) working days within which to respond to the Notice Seeking Clarification.

Courtesy: https://www.gst.gov.in

GST FAQ: Registration Application – 1

 GST FAQ: Registration Application – 1  GST FAQ: Registration Application
Aug 282017
 

Normal Tax Payer / Composition / Casual Taxable person

Landing Page

1. I am on the landing page of the New Registration Application and there are two radio buttons – New Registration and Temporary Reference Number (TRN). Which one do I need to select?

Select the New Registration Application to begin applying for GST Registration .

If you have already filled Part A of the Registration Application and have a valid TRN, select Temporary Reference Number.

2. I am applying for a new registration. Which state should I select?

Select the state for which you are applying for the registration.

Once you select a state in Part A of the Registration Application, it cannot be changed at a later stage.

3. My principal place of business is in State ‘X’ but I am applying for a new registration for State ‘Y’. Which state should I select?

Select the state for which you are applying for the registration as registration is state-specific.

4. In the field for PAN, do I need to put my own PAN or the PAN of the business?

Please enter the PAN of your business. In case of proprietor, please provide your personal PAN.

5. Whose e-mail ID and mobile number should I give in the PART A of the Registration Application?

Please give details of the Primary Authorised Signatory in the Part A of the Registration Application .

6. What is Captcha Code? Why do I need to fill it?

Captcha Code is a numeric code that must be filled every time a taxpayer login to the GST Portal. It has been added as an additional security measure.

7. The Captcha Code provided is not legible. What should I do?

You can click the refresh icon next to the code and the system will generate a new code for you.

8. I clicked the SUBMIT button and now the system is asking me for a mobile OTP and an e-mail OTP but I haven’t received either. What do I do? / I have received my mobile OTP but not my e-mail OTP or vice versa. How long should I wait?

Please wait for at least 180 seconds after generating the OTPs.

In case you have still not received the OTP/s, make sure you are checking the correct mobile phone and e-mail inbox. For e-mail OTP, you must also check the spam folder of your e-mail account.

In case you have still not received one or both the OTPs, please click the Click to Resend OTP option available on the screen. Both the OTPs will be sent again.

9. How long are the OTPs valid? OR Are the OTPs valid for a limited period of time? OR What is the validity of the OTP?

The validity period of each OTP is clearly mentioned in the SMS and e-mail. They are valid for at least 10 minutes.

10. I have entered both OTPs correctly but the system is saying the OTPs are not valid.

It is possible your OTPs have expired. Click the Click to Resend OTP option available on the screen. Both the OTPs will be sent again. Please wait for at least 180 seconds after generating the OTPs.

Please note, when you generate fresh OTPs, both previous OTPs (mobile as well as e-mail) become invalid. You will now need to enter both mobile and e-mail OTP again.

11. How long should I wait for the OTPs before clicking on the resend OTP button?

Please wait for at least 180 seconds after generating the OTPs.

In case you have still not received the OTP/s, make sure you are checking the correct mobile phone and e-mail inbox. For e-mail OTP, you must also check the spam folder of your e-mail account.

In case you have still not received one or both the OTPs, please click on Click to Resend OTP option available on the screen. Both the OTPs will be sent again.

Please note, when you generate fresh OTPs, both previous OTPs (mobile as well as e-mail) become invalid.

12. What is a TRN?

TRN or Temporary Reference Number is a unique 15-digit reference number that is generated when you successfully submit all the fields of PART A (first page) of the new registration application and successfully validate your mobile number and e-mail ID by correctly entering the respective OTPs.

Your TRN is sent to you via SMS and e-mail. It is valid for 15 days from the date of creation.

 

After TRN is generated, note it down and access PART B of your new registration application on the GST Portal in the pre-login mode by entering the TRN.

13. Now that I have generated my TRN, how do I begin filling PART B of my new registration application?

Please go to the New Registration page and select the radio button Temporary Reference Number. Now enter your TRN and click PROCEED. A new page will open where you will have to enter the Mobile OTP and e-mail OTP which will be sent to you when you click PROCEED. Enter the respective OTPs and you will be directed to the landing page of PART B of the New Registration Application (Business Details section).

14. I did not write my TRN or I have forgotten my TRN?

Your TRN is also sent to you via SMS and e-mail.

15. I did not write my TRN and I also deleted the SMS and the e-mail that were sent to me. What do I do now?

In such a case, you will have to fill in all the details in PART A of the Registration Application again. Upon completing the process, a message will be displayed ‘You already have a TRN generated <TRN number> with this combination’.

Be sure to save the TRN this time!

16. It has been more than 15 days since I generated a TRN. Can I still access my new registration application?

In such a case, you will have to fill in all the details in PART A of the Registration Application again. Upon completing the process, a message will be displayed ‘You already have a TRN generated <TRN number> with this combination’.

17. Does the TRN expire 15 days after I generate it or 15 days after my last login?

The TRN expires 15 days after it is generated regardless of any number of logins by you.

18. I have logged into my new registration application successfully using my TRN, Mobile OTP, and E-mail OTP. What is the next step?

Please click on the blue box with the pencil icon inside it to continue filling your Registration Application.

Courtesy: https://www.gst.gov.in

 Permalink  GST, Tax applicable in case of import of goods
Aug 072017
 

Tax applicable in case of import of goods

Meaning of goods imported into India and its status under GST:

As per section 2(10) of the IGST 2017, import of goods means bringing goods into India from a place outside India. Sub-section 2 of section 7 provides that Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce.

Manner of levy of imported goods:

Section 5 of IGST act provides for levy and collection of IGST. Proviso to section 5 provides that integrated tax on goods imported into India shall be levied and collected in accordance with section 3 of the customs act. “Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962.”

Place of supply:

The place of supply has very significant role under GST. It clarifies the appropriate taxing government to who tax to be deposited. Section 11 of IGST act provides that the place of supply of goods,––

  1. a) imported into India shall be the location of the importer;
  2. b) exported from India shall be the location outside India.

Whether tax paid on import of goods / services is eligible for Input Tax Credit:

As per section 2(62) of CGST act – “) “”input tax”” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes— (a) the integrated goods and services tax charged on import of goods but does not include the tax paid under the composition levy.

Conclusion:

(a)   Import of goods shall be treated as inter-state sale under GST.

(b)   Such inter-state sale shall be taxed in the taxable territory of the state where importer is located.

(c)   Valuation of such goods shall be done by as per principle and rules specified in customs act.

(d)   Customs clearance shall be done only after payment of GST.

(e)   Normal GST rates would not be applicable to such goods. Tax rates schedule as applicable under customs tariff act will be applicable to calculation of GST.

(f)    Importer shall be eligible for ITC on tax paid at the time of importation if other conditions relating to claiming of ITC is fulfilled by him.

Rounding of tax under GST

 Rounding of tax under GST  Rounding of tax under GST
Aug 022017
 

Rounding of tax etc. under GST:

Section 170. The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.

Thus, from the above the following points may be concluded:

  • The amount of tax or interest payable shall be rounded off to nearest rupees.

Manner of rounding off:

Rounding of under GST shall done at the stage where tax is actually liable to be paid. As per section 12 / section 13 tax is payable at the time of supply which is generally at the time of issue of invoice by the supplier. The extract of the section 12 and section 13 of the act is given below:

Section 12: Time of supply of goods i.e., liability to pay tax in case of supply of goods:

(1) The liability to pay tax on goods shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of goods shall be the earlier of the following dates, namely:—

  1. the date of issue of invoice by the supplier or the last date on which he is required, under sub-section (1) of section 31, to issue the invoice with respect to the supply; or
  2. the date on which the supplier receives the payment with respect to the supply:

Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount.

Explanation 1.––For the purposes of clauses (a) and (b), “supply” shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment.

Explanation 2.––For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the payment is entered in his books of account or the date on which the payment is credited to his bank account, whichever is earlier.

Section 12: Time of supply of services i.e., liability to pay tax in case of supply of services:

(1) The liability to pay tax on services shall arise at the time of supply, as determined in accordance with the provisions of this section.

(2) The time of supply of services shall be the earliest of the following dates, namely:—

  • the date of issue of invoice by the supplier, if the invoice is issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
  • the date of provision of service, if the invoice is not issued within the period prescribed under sub-section (2) of section 31 or the date of receipt of payment, whichever is earlier; or
  • the date on which the recipient shows the receipt of services in his books of account, in a case where the provisions of clause (a) or clause (b) do not apply:

Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.

Explanation.––For the purposes of clauses (a) and (b)––

  1. the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
  2. “the date of receipt of payment” shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.

Conclusion:

Rounding of tax shall be done at each time when liability to pay tax arises. Under the normal circumstances liability to pay tax arises at each time when an invoices is issue to the recipient and hence at each invoice level rounding off the tax needs to done and the aggregate tax liability for a tax period (which is on monthly basis) shall be paid within 20 days after the end of the particular month.

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