GST

Can we do multiple GST registration on a PAN card?

A taxable person supplying goods or services from different states is mandated to take different GST registration for each state (which would be based on a single PAN). Also, a person who has different verticals of business within the same state can choose to have different GSTIN for each vertical (and these would again be based on a single PAN) Important thing to note here is each GSTIN whether in different states or in the same state (for different verticals) would [...]

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Sale of Second hand goods under GST

While GST is charged on transaction value under a normal supply. For a second hand supply, GST would be applicable only on the margin i.e. the difference between the value of  sale and purchase price. If there is no margin, no GST is charged for such supply. The purpose of the scheme is to avoid double taxation as the goods, having once borne the incidence of tax, re-enter the supply and the economic supply chain. Valuation of second hand goods Second hand goods are [...]

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FAQ on e-commerce under GST

E-commerce has emerged as an emerging trend of business in India, there are thousands of suppliers under e-commerce operators, we will discuss about the applicability of GST on the suppliers selling goods or services through an e-commerce platform. An e-commerce platform/operator is an entity which owns, operates or manages digital or electronic facility or platform for E commerce like Amazon, Flipkart, Google Playstore etc. Here’s a list of common FAQs on Ecommerce Also read: Applicability of GST on sellers in e-commerce market place i.e. [...]

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Debit note: How & when to issue under GST

What is a debit note? When a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, would issue a debit note to the recipient indicating the same. The issuance of debit note is a convenient and legal method by which the value of the [...]

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Credit note: How & when to issue under GST

What is a Credit note? Where a tax invoice has been issued for supply of any goods or services  and the taxable value or tax charged in that tax invoice is found to exceed the taxable value or tax payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services may issue a credit note to the recipient indicating the same. The [...]

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Ineligible Input tax credit under GST

Following are the goods and services where the GST law has imposed restriction while availing GST input tax credit, primarily called as Ineligible Input tax credit. We will discuss about the extent and eligibility of ITC of these goods and services. 1. ITC for Motor Vehicles is not available. The GST levied on purchase of Motor vehicles and conveyance is an ineligible Input tax credit. However, there are few exception cases where GST credit is available. These are: Dealers who are engaged [...]

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Important changes announced in 22nd GST council meet

The GST Council, in its 22nd meeting held at New Delhi on 6th October 2017, has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses: A.Flexibility in eligibility to composition scheme 1.Increase in turnover limit The turnover limit for eligibility of opting composition scheme has been increased from present Rs. 75 lakhs to Rs 1 crore and for special category states, it has been increased from Rs 50 lakhs to 75 lakhs. The increase in the turnover [...]

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Treatment of Cash discounts & Trade discounts under GST

There has been a lot of confusion in treatment of discounts in invoice and questions with respect to which amount should be chargeable to GST. Though the law is pretty clear about it. GST treats all the discounts such as trade discounts, cash discounts, volume/turnover discounts, etc. Instead, the treatment varies with the timing of discount being given, so we classify the treatment of discounts under the following two categories: 1. Discount given before or at the time of supply, and 2. [...]

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How to utilize GST credit against GST liability

Credit Utilization rule under GST There are three types of GST credit that a person can avail viz. the following: IGST Credit- this is the credit you could avail when you make interstate purchases & IGST is charged on invoice by the seller. CGST Credit- this is the credit you could avail when you make intrastate purchases & CGST is charged on invoice by the seller. SGGT Credit- this is the credit you could avail when you make interstate purchases & SGST is [...]

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Input credit under GST

What is Input credit In simple words taking input credit means taking credit of GST paid on various purchases A registered person is entitled to take credit of GST charged on purchase of goods or services which are used or intended to be used in the course or furtherance of his business The said amount shall be credited to the electronic credit ledger of such person. Conditions for taking Input credit 1. You must possess a tax invoice or debit note issued by a [...]

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