Invoicing under GST

gst-invoice-structure

Invoicing is a crucial aspect of tax compliance for every business. It is essential to be aware of the rules of invoicing under GST. Let us understand these in detail.

Invoicing in the current tax regimes

In the current tax regimes, tw

o types of invoices are issued:

  1. Tax invoice – This is issued to registered dealers, and can be used to claim tax credit. Sample formats of the two main types of tax invoice in the current tax regime, the Rule 11 Excise invoice and tax invoice are shown below.
    invoicing-under-gst
  2. Retail or commercial invoice – This is issued to an unregistered dealer or retail customer, and no tax credit can be claimed on this invoice. Sample format of a retail invoice in the current tax regime is shown below.
    retail-commercial-invoice

 

Invoicing in the GST regime

In the GST regime, two types of invoices will be issued:

  1. Tax invoice
  2. Bill of supply

Tax invoice

When a registered taxable person supplies taxable goods or services, a tax invoice is issued. Based on the rules regarding details required in a tax invoice, a sample tax invoice has been shown below.

gst invoice sample

What is the time limit for issue of tax invoice?

Supply of goods The tax invoice must be issued before or at the time ofRemoval of goods, where supply involves movement of goods

E.g. – When Super Cars Ltd, a car manufacturer, supplies cars to its dealer Ravindra Automobiles, the invoice must be issued at the time of removal of the cars from Super Cars Ltd’s premises. This is because the supply involves movement of the cars to Ravindra Automobiles’ premises.

OR

Delivery of goods to the recipient, where supply does not require movement of goods

E.g. – Super Cars Ltd purchases a generator set, which will be assembled and installed at the factory premises by the supplier. Here, since the supply does not require movement of the generator set, the invoice must be issued at the time when the generator set is made available to Super Cars Ltd.

Supply of services The tax invoice must be issued within 30 days from the date of supply of the service.
Where the supplier is a bank or any financial institution, the invoice must be issued within 45 days of the supply of service.

Note: In case a person paying tax on reverse charge receives goods or services from an unregistered supplier, the receiver must issue an invoice on the date of receipt of goods or services.

How many copies of the tax invoice are required?

For supply of goods, three copies of the invoice are required – Original, Duplicate, and Triplicate.

Original invoice: The original invoice is issued to the receiver, and is marked as ‘Original for recipient’.

Duplicate copy: The duplicate copy is issued to the transporter, and is marked as ‘Duplicate for transporter’. This is not required if the supplier has obtained an invoice reference number.  The Invoice reference number is given to a supplier when he uploads a tax invoice issued by him in the GST portal. It is valid for 30 days from the date of upload of invoice.

Triplicate copy: This copy is retained by the supplier, and is marked as ‘Triplicate for supplier’.

copies of GST tax invoice

For supply of services, two copies of the invoice are required:

  • Original Invoice: The original copy of the invoice is to be given to receiver, and is marked as ‘Original for recipient’.
  • Duplicate Copy: The duplicate copy is for the supplier, and is marked as ‘Duplicate for supplier’.

Copies of tax invoice for supply of services

What details must a tax invoice for export contain?

An export invoice must, in addition to the details required in a tax invoice, contain the following details:

Export invoice
Must have the words ‘“Supply meant for export on payment of IGST” or “Supply meant for export under bond without payment of IGST”
Name and address of the recipient
Delivery address
Number and date of ARE-1 (application for removal of goods for export)

Bill of Supply

Bill of Supply is to be issued by a registered supplier in the following cases:

  • Supply of exempted goods or services
  • Supplier is paying tax under composition scheme

Based on the rules regarding details required in a Bill of supply, a sample Bill of Supply has been shown below.

GST Bill of Supply format

The bill of supply need not be issued when the value of goods or services supplied is less than Rs 100, unless the receiver insists for the bill. However, a consolidated bill of supply should be prepared at the end of the business day for all such supplies for which the bill of supply is not issued.

How to revise the values of an invoice already issued?

To revise the taxable value or GST charged in an invoice, a debit note or supplementary invoice or credit note must be issued by the supplier.

Debit note/supplementary invoice- These are to be issued by a supplier to record increase in taxable value &/or GST charged in the original invoice.

Credit note- These are to be issued by a supplier to record decrease in taxable value &/or GST charged in the original invoice. Credit note must be issued on or before 30th September following the end of the financial year in which the supply was made OR the date of filing of the relevant annual return, whichever is earlier.

Let us understand the time limit for issue of credit note with an example.

Example

Super Cars Ltd sells spare parts worth Rs. 6,00,000 to its dealer Ravindra Automobiles on 1st November ‘17.  On 2nd November ’17, Ravindra Automobiles returned spare parts worth Rs 1,00,000, being damaged goods. Super Cars Ltd wants to raise a credit note for the goods returned.

Let us ascertain the last date by when Super Cars Ltd must issue the credit note using 2 scenarios-

Scenario 1- They file annual return of the Financial Year 17-18 on 1st December ‘18

Scenario 2- They file annual return of the Financial Year 17-18 on 31st May ‘18.

Scenario Date of original supply Annual return filing date Condition for determining last date to issue credit note Last date for issuing credit note
Scenario 1 1st November 2017 1st December ‘18 30th September following the end of the financial year in which the supply was made or the date of filing annual return, whichever is earlier 30th September ‘18
Scenario 2 31st May ‘18 31st May ‘18

 

What details should debit notes, supplementary invoices and credit notes include?

Debit notes, supplementary invoices and credit notes must include the following details:

Debit note/Supplementary Invoice/Credit Note
Nature of the document must be indicated prominently, such as ‘revised invoice’ or ‘supplementary invoice’
Name, address, and GSTIN of the supplier
A consecutive serial number containing only alphabets and/or numerals, unique for a financial year
Date of issue of the document
If recipient is registered- Name, address and GSTIN/Unique ID number of the recipient
If recipient is unregistered- Name, address of recipient and address of delivery, with state name and code
Serial number and date of the original tax invoice or bill of supply
Taxable value of the goods or services, rate of tax and the amount of tax credited or debited to the recipient
Signature or digital signature of the supplier or his authorized representative

How to File Your GST Returns

how-to-file-gst-return_new-size-704x286

Every registered taxable person has to furnish outward supply details in Form GSTR-1 by the 10th of the subsequent month. On the 11th, the visibility of inward supplies is made available to the recipient in the auto-populated GSTR-2A. The period from 11thto 15th will allow for any corrections (additions, modifications and deletion) in Form GSTR-2A and submission in Form GSTR-2 by 15th of the subsequent month.The corrections (addition, modification and deletion) by the recipient in Form GSTR-2 will be made available to supplier in Form GSTR-1A. The supplier has to accept or reject the adjustments made by the recipient. The Form GSTR-1 will be amended according to the extent of correction accepted by supplier.

On 20th, the auto-populated return GSTR-3 will be available for submission along with the payment. After the due date of filing the monthly return Form GSTR-3, the inward supplies will be matched with the outward supplies furnished by supplier, and then the final acceptance of input tax credit will be communicated in Form GST ITC-1.

Also, the mismatch input tax credit on account of excess claims or duplication claims will be communicated in Form GST ITC-1.Discrepancies not ratified will be added as output tax liability along with interest. However, within the prescribed time, if it is ratified, the recipient will be eligible to reduce this output tax liability.

Let us understand this with an example.

asset-4

How to Amend, Cancel, or Revoke GST Registration

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Let us now understand how to:

  • Amend your registration details
  • Apply for cancellation of registration
  • Revoke your registration if it is cancelled

Amending Your Registration Details

  • Any change in details furnished at the time of registration must be submitted within 15 days from the date of such changes in Form GST REG-11.
  • Specific changes in Form GST REG-11 relating to the name of the business, partner details, managing committee, and so on, require approval from an officer. After verification, an approval order by the officer is sent in Form GST REG-12 to amend the details.
  • Changes in business details that result in change of PAN number of the registered tax payer, require a fresh registration in Form GST REG-01.

Amending GST Registration

Applying for Cancellation of Registration

  • A registered taxable person seeking cancellation of registration, should submit Form GST REG-14 along with details of closing stock and other relevant documents.
  • Within 7 days, a notice in Form GST REG-15 is issued to the taxable person to show cause with reason for such cancellation.
  • After verification and approval by an officer, cancellation order in  Form GST REG-16 is issued within 30 days from the date of receipt of Form GST REG-15 or date of show cause.

How to Cancel GST Registration

A taxable person who has voluntarily registered is allowed to apply for cancellation only after completion of 1 year of registration. An officer determines the effective date of cancellation after directing the taxable person to clear any tax arrears and penalty, if any.

Revoking a Cancelled Registration

  • In case the registration is cancelled by an officer, a taxable person can apply for revocation by submitting Form GST REG-17 within 30 days from date of cancellation order.
  • If the officer requires additional details or clarification, Form GST REG-3 is issued within 3 working days.
  • The taxable person then needs to respond by providing requisite details in Form GST REG-4 (within 7 working days).
  • If the officer is satisfied, the cancellation is revoked by issuing an order in Form GST REG-18 within 30 days from date of such application.
  • If the officer is not satisfied, the revocation application is rejected in Form GST REG-5. Prior to this rejection, the taxable person will be issued a show cause notice in Form GST REG-19 and hearing.

Revoke Cancelled GST Registration

GST Registration for Existing Dealers

gstregistration-704x300

With each passing day, we are moving one step closer to the GST regime. The GST Bill has been  approved by President and the GST Council is in the process for forming the rules. As business begin their preparation towards the new taxation system, obtaining GST registration is the first step.

Liability for Registration in GST

Region Aggregate Turnover
Liability to Register Liability for Payment of Tax
North East India Rs 9 Lakhs Rs 10 Lakhs
Rest of India Rs 19 Lakhs Rs 20 Lakhs

This ensures that on the day a dealer crosses Rs 20 Lakhs turnover, he is already registered, need to start charging GST, and is eligible to claim input tax credit. All existing dealers registered with any of the current laws (VAT/Excise/Service Tax) will also need to register under GST by default.

Important Note: The turnover considered here is the aggregate pan-India turnover (including value of non-taxable, exempt and export supplies) of a business entity, and not state-wise.

Example

Let us take an example to illustrate the liability of business to register under GST.

Super Cars Ltd. is a car manufacturing unit in Karnataka. They own ‘Super Cars Service Ltd’, a service unit located in Karnataka and Delhi. Additional details are furnished in the table below:

Business Unit Location PAN Number Turnover (Rs)
Super Cars Ltd. Karnataka AEHCS3476M 125 Lakhs
Super Cars Service Ltd. Karnataka AEHCS3476M 20 Lakhs
Super Cars Service Ltd. Delhi AEHCS3476M 10 Lakhs

As per the example,

  • All 3 units are registered under the same PAN AEHCS3476M
  • To arrive at the aggregate turnover, the turnover of all the 3 units (Super Cars Ltd. and Super Cars Service Ltd. located in Karnataka and Delhi) will be considered.
  • Therefore, the aggregate turnover will be Rs 155 Lakhs (Super Cars Ltd. Rs 125 Lakhs + Super Cars Service Ltd. of Karnataka Rs 20 Lakhs + Super Cars Services Ltd. of Delhi Rs 10 Lakhs) and are required to register under GST.

For Whom is Registration Mandatory?

The following categories of suppliers need to mandatorily register irrespective of turnover:

  • Taxable person carrying on interstate supply
  • Casual and non-resident taxable persons
  • Businesses liable to pay tax under reverse charge
  • Agents supplying on behalf of taxable person
  • Input service distributor
  • Sellers on e-commerce platforms
  • Aggregator supplying services under his brand name
  • Persons responsible to deduct TDS

Registration Forms for Dealers Registered under Existing Central and State Tax

  • All dealers registered with central or state tax authorities will be auto-migrated and allotted with a provisional certificate of registration in Form GST REG-21.
  • Within 6 months, dealers are required to submit Form GST REG-20 in the GST Portal along with information and documents as prescribed.
  • If the information provided is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.
  • If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-23, and there will be a hearing before cancelling the provisional registration. If the show cause hearing is not successful, or if the details are not provided within the stipulated period, the provisional registration allotted in Form GST REG-21 will be cancelled by issuing an order in Form GST REG-22.

Register for GST -Existing Delaers

During transition, if a taxable person is not required to register under GST, but was previously registered (Central and State law), he has an option to cancel the provisional registration issued by submitting the Form GST REG-24.

 

How is GST Different from Current Tax Structure

GST (Goods & Service Tax), a single unified tax system aims at uniting India’s complex taxation structure to a ‘One Nation- One Tax’ regime. It is the biggest tax reform since India’s independence.

What does this mean? What will be its impact?

GST proposes to remove the geographical barriers for trading, and transform the entire nation to ‘One Common Market Place’.

Let us understand the fundamentals of GST, it is a dual concept tax system. Under this system, tax is administered, collected, and shared by both the Centre and the State governments, based on the nature of transaction (within the state or interstate).

The tax components of GST 

 

While we now know the tax components of GST, it is equally important for you to know the taxes existing in the current regime, and how they are subsumed under GST.

Current Indirect Tax structure

Current Tax structure Vs GST

 

Taxes subsumed under GST

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Tally now partners with ICICI Foundation

Bangalore, Nov 6 (IBNS): Business man management software company Tally Solutions Pvt. Ltd has recently entered into collaboration with the ICICI Foundation to offer skill development programmes for the youth across the country.

 

As part of this tie-up, Tally has joined hands with the ICICI Foundation in their effort to help the rural youth across India find a sustainable livelihood.
The initiative partnered by Tally focuses on expanding employment opportunities by imparting vocational skills to youth.

The foundation plans to train around 15,000 youth across the country by the year 2016.

As their technology partner, the initial phase will witness Tally Solutions offering a 12-week course on office automation.

Commenting on the collaboration, Shoaib Ahmed, President, Tally Solutions said, “Employability is one of the biggest challenges our country has been grappling with. With this partnership, we are confident that we would be able to address the skill gap and create an ecosystem of employment ready professionals and thereby foster the inclusive growth of the country.”

 

Source : http://www.indiablooms.com/BusinessDetailsPage/2013/businessDetails061113e.php

Tally Awards & recognition

Recognition of Tally’s Excellence

 

 Tally honoured with two ‘2013 Frost & Sullivan India ICT Awards’ – 16th May, 2013

The Award ceremony recognizing the outstanding achievements in the ICT sector, was organized by Frost and Sullivan India on Thursday, May 16th, 2013 at Le Meridien, New Delhi. Mr. Shoaib Ahmed, President, Tally Solutions accepted both the awards:

  • Tally.ERP 9 – ‘ERP Application of the Year in the SMB Sector’ 
  • Shoper 9 – ‘Emerging IT Application of the Year in the Retail Sector’
 

 ET Now conferrs Retail Leadership Award on Shoaib Ahmed – 13th Feb, 2013

Shoaib Ahmed was conferred the ‘Retail Leadership Award’ in the individual category at the – ‘ET Now – Retail Excellence Awards’. He was nominated for the award by his peers from the Retail industry in recognition of his professional efforts.

 

 Cell IT conferrs Lifetime Achievement Award on Bharat Goenka – 9th Dec, 2012

One more proud moment for Tally! Cell IT Channel Awards hailed Mr Bharat Goenka with a Life Time Achievement Award for his contribution to the Indian Software Industry.

 

Tally receives prestigious ‘Samman Patra’

Mr. Ram Prakash Lakshminarayana receiving the ‘Samman Patra’ from the Central Excise and Service Tax Department on the occasion of Central Excise Day, 24th Feb 2012.

Tally was honored as a tax payer who has registered a significant increase in tax payment in 2010-11.

 

NASSCOM conferrs Lifetime Achievement Award on Bharat Goenka – 9th Nov, 2011

The first EVER recipient of NASSCOM’s prestigious award, Bharat Goenka – hailed as the “father of the Indian software product industry”, was saluted for his commitment and outstanding contribution to Indian business.

 

Tally in Top 100 Great Places to Work

Tally comes through with flying colours once again earning the accolade of ‘Great Place to Work’. Better workplaces lead to a better society and Tally employees’ vote of trust makes us a trailblazer in the context of Indian and S. E. Asian business.

 

Tally is CRN 2010 Channel Champion

In a landmark survey conducted by CRN (Computer Reseller News), India’s leading IT Channel publication, Tally emerges as Channel favourite in the Software Applications category, triumphing over reputed multi-nationals.

 

Tally bags prestigious IT National Excellence Award 2007

Tally has won the impressive IT National Excellence Award 2007 instituted by All India Association of Information Technology, Indore. Tally was honoured with the “Special Award” for its excellent performance in the IT sector and for its outstanding contribution in the IT Training and Education.

 

360 Magazine’s Golden Rhino Award 2004, 2005, 2006, 2007

For four consecutive years, Tally has won the Golden Rhino Award presented by 360 Magazine.

 

And More…..

Tally.Sever 9 Release 4.5

Tally.Server 9

Tally.Server 9, a new product which can be installed in the server machine and run as a service, has been developed by Tally to provide an unparalleled usability experience for secure and concurrent data access in your multi user environment. It is an extremely simple-to-deploy product which also provides advanced monitoring and administrative control:

  • Performing operations in a frictionless environment: Multiple users will be able to simultaneously load companies, save transactions, export reports, print reports, import data, take backup and perform other data related activities without experiencing any downtime or wait state.
  • Keeping the data file safely invisible and providing controlled access: The data files will be managed through Tally.Server 9. The physical location or path for the data on the server need not be disclosed or made accessible to any user. The clients just require the name of the data server, which will be enough to access and operate Tally.ERP 9. Furthermore, operations for company data management, namely Backup, Restore, Rewrite, Create Company, and Split Company, are also controlled with server level permissions.
  • Analysing system usage and user activities to optimise the various processes and time spent on them: Since the access is controlled through Tally.Server 9, the authorised users will be able to monitor who is currently logged in, which companies are open, track the activities and even disconnect users if such a requirement arises.
  • Minimising instances of system unavailability: Availability of the system is important for any business. With Tally.Server 9, data backup can be taken anytime without affecting either the speed of access for users or the reliability of data that is backed up. In other words, users can continue recording transactions or generating reports while the backup is happening – There is zero downtime for backup.

Currently in a multi user environment, database for Tally.ERP 9 Series A is shared with users via the Windows Shared service. This process has its own limitations with regard to data security, performance, and speed during concurrent usage by multiple users.

Benefits for the business :

  • More than 100 client machines can access data at a time.
  • Multiple users can concurrently read (e.g. view reports) and write (e.g. record transactions) data.
  • Administrators can have control over who accesses the data on the server; permissions provided will be user-specific.

 

The Upcoming Release, Tally.ERP 9 Series A, Release 3.6

 

New feature of upcoming release 3.6 as below :

  •  Always be ‘AuditReady : 
    • Revised Schedule VI:
      • Generates the complete revised Sch. VI Balance Sheet, P&L and annexure
      • Bifurcate, assign and move ledger amounts to appropriate Schedule VI heads
      • Drill down to voucher level from all Sch. VI reports & notes
    • Tax Audit:
      • Form 3CD, 3CA & 3CB
      • Annexure to all the clauses
      • Specifying/identifying financial data for all clauses
    • Stat Audit:
      • Verification of opening balances, general ledger analysis / scrutiny
      • Clean up redundant masters, negative cash & inventory balances
      • Identify transactions with related parties and MSME
      • Account reconciliation (auto & manual)
      • Third Party confirmations
      • Audit journals
      • CARO report
  •  Banking : 
    • Cheque Management:
      • Auto cheque numbering: No more manual tracking, no more duplicates
      • Support customer & supplier queries: Search vouchers for specific cheque numbers
      • Cheque register: Build an additional layer of control on cheque usage
    • Direct support for Cheque printing:
      • Pre-configured cheque printing: For each bank accept the right image of the cheque to automatically configure Tally.ERP 9 to print on such cheques
      • Vertical/Horizontal Cheque Printing: Full support for printers that require cheque leaves to be in a specific alignment
    • Auto Bank Reconciliation:
      • Automatic reconciliation: Import your bank statements & reconcile with single click
      • Differences: Instantly create or alter a transaction to reconcile
      • Manual: Full or partial manual reconciliation is supported
  • Tally Live Update
      • Get notified and install updates (product & statutory) at the click of a button
      • Optionally schedule the update at a time you define
  • Tally Message Centre
    • Receive regular news from Tally and stay up to date with information on
      • Product releases
      • Subscriptions
      • Add-ons
      • Statutory updates and extensions
  • Enhanced Password Security
    • Define your security policy in line with accepted global practices
      • Specify password strength
      • Mandate password to be changed periodically
      • Prevent old password reuse
      • Mandatory password change on first login

 

Notify me, when ready