Invoicing under GST

Posted on by Tally Academy

gst-invoice-structure

Jan 03 2017

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

Tally.ERP 9 Series A Release 5.4.9, January, 2017

Posted on by Tally Academy

The new Tally.ERP 9 Release 5.4.9 is available now!

Whats new in Tally.ERP 9 Release 5.4.9

  • In this release, Tally has introduced the enhanced VAT experience for the states of Rajasthan and Uttar Pradesh, new annexure templates for Tamil Nadu, enhancement of the TDS Nature of Payments report, and the concept of Rule Set as a part of TDL.

Release 5.4.9 – Highlights

VAT

Tamil Nadu: New Annexure Templates

  • Commercial Taxes Department, Tamil Nadu has introduced new versions of Annexure 8 and Annexure 9 (V1.1.xls).  Using Tally.ERP 9 Release 5.4.9, you can export interstate purchases and purchase returns to the new templates.

Rajasthan and Uttar Pradesh: Enhanced VAT Experience

  • If you have been using the VAT module in Tally. ERP 9 5.x series to file returns, for the states of Rajasthan and Uttar Pradesh, you will be delighted with the speed with which you can now resolve exceptions. You can group exceptions item-wise or ledger-wise, and resolve multiple exceptions together.

Click here for release notes

Click here for download

How is the Value of Goods & Services Determined under GST?

Posted on by Tally Academy

Valuation of goods and services in GST

The value of all the goods and services consumed in an economy is arrived at based on certain metrics. In the current tax regime in India, this value is calculated in different ways. An overview is provided in the table below:
Tax Value of goods/services
Excise Based on transaction value or quantity of goods or MRP
VAT Based on sale value
Service Tax Based on taxable value of service rendered

Valuation of goods and services

Current tax regime

Let us look at how the value of goods and services is calculated in the current regime, with the help of an example:

Super Cars Ltd, a car manufacturer, sells spare parts to Ravindra Automobiles, their dealers for Rs 6,000. The MRP of the spare parts is Rs 10,000. The invoice that is issued to Ravindra Automobiles is illustrated below:

Value of goods and services for tax

Under GST Regime

We have used the same example as above to illustrate the method of valuation of goods and services in the GST regime:

GST Value Calculation
*Assuming GST of 18% on automobile spare parts

In the GST regime, the value of goods &/or services supplied is the transaction value, i.e. the price paid/payable, which is Rs 6,000 in the example.

Additional Charges and Expenses – in the GST Regime

How are additional charges and expenses such as discount, packing charges treated in the GST regime? Should they be included or excluded from the transaction value?

Let us consider this illustration.

Super Cars Ltd sells a car worth Rs 4,00,000 to Ravindra Automobiles.

  • They incur packing charges of Rs 5,000 on the car
  • They provide a discount of 1% on the price, as part of Diwali scheme
  • Super Cars Ltd agree to provide a further discount of 0.5% if Ravindra Automobiles makes payment by 31st of the month via net banking. Ravindra Automobiles makes the payment by 31st of the month using net banking.

The invoice issued to Ravindra Automobiles, under GST, will look like this:

discounts in GST
*Assuming GST of 18% on car

 In the invoice,

  • Packing charge of Rs 5,000 is included in the transaction value.
    Packing charges or any incidental expenses charged before or at the time of supply of goods or services must be included in the transaction value.
  • Discount of 1% is deducted from the transaction value.
    Discount given before or at the time of supply, and which is recorded in the invoice, can be deducted from the transaction value.
  • Discount of 0.5% is not deducted in the invoice. As discount of 0.5% is given after the supply, it will not be shown in the invoice. However, since the discount was known at the time of supply, and can be linked to this specific invoice, the discount amount can be reduced from the transaction value. For this, Super Cars Ltd will issue a credit note to Ravindra Automobiles for Rs 2,360 (0.5% of Rs 4,00,000 = Rs 2,000+ GST@ 18% on Rs 2,000 = Rs 360), and the same must be linked to the relevant tax invoice.
    Discount given after supply but agreed upon before or at the time of supply and can be specifically linked to relevant invoices, can be deducted from the transaction value.

What are the exceptions to this rule?

Answer: Discount given after supply, and not known at the time of supply.

Let us understand this with an illustration.

Super Cars Ltd sells a car to Ravindra Automobiles for Rs 4,00,000. As per the standing agreement, a credit period of 30 days is allowed for payment. However, due to a severe cash crunch, Super Cars Ltd requests Ravindra Automobiles to make the payment within 2 days, promising a discount of 2% on doing so. Ravindra Automobiles makes the payment within 2 days.

In this scenario, since the discount was not known at the time of supply, it cannot be claimed as a deduction from the transaction value for GST calculation.

A summary of the effect of discount on transaction value is given below-

Type of discount Effect on transaction value
If the discount is given before or at the time of supply, and is recorded in the invoice Can be claimed as deduction from transaction value
If the discount is given after supply, but agreed upon before or at the time of supply, and can be specifically linked to relevant invoices Can be claimed as deduction from transaction value
If the discount is given after supply, and not known at the time of supply Cannot be claimed as deduction from transaction value

 

Effect of various charges/expenses of supply on transaction value is shown below-

Charges/expenses related to supply Effect on transaction value
Incidental expenses such as commission and packing Included in transaction value
Interest/late fee/penalty charged by supplier for delayed payment Included in transaction value
Subsidies excluding those provided by the Central and State governments Included in transaction value
Any tax other than GST Included in transaction value
Any amount payable by supplier, but incurred by receiver Included in transaction value

It is expected that GST (Goods and Services Tax) will bring about marked changes in the tax scenario in the country. The various aspects of product pricing, valuation of goods and services, and others will experience significant transformation as the tax system is simplified.

Moving to GST Era: For Registered Manufacturers

Posted on by Tally Academy

current-tax-era-to-gst_1-copy-704x286

The first and foremost task for you, as a business registered under the current law, is transiting to GST (Goods and Services Tax). While it is important to know the fundamentals of GST, it is also very critical for you to understand GST transition provisions available, and take necessary actions to ensure a smooth transition to GST and leverage on transition benefits.

You will need to review your accounting and reporting procedures, procurement, logistic decisions, and so on in advance to avail the appropriate GST input tax credit.

For better and ease of understanding, we have categorised GST transition provisions for each of the below business types:

  • GST for Manufacturer
  • GST for Trader
  • GST for Service Provider

GST for Manufacturers

Some questions you may have:

  • What will happen to the balance input tax credit available on the last day, before GST to be implemented?
  • What will happen to the input tax credit on capital goods which is yet be availed?

 

Today, the manufacturing and sales activity is governed by a separate indirect tax system. Manufacturing activity is covered by Central Excise and Sales is covered under State VAT/CST. Typically, a manufacturer should be registered under Excise as well as State VAT/CST.

As a manufacturer, you need a thorough understanding about the related provisions, and very importantly, you need to know the answer to “what should I do today for tomorrow’s GST readiness?”

Scenario 1: Availed CENVAT and Input VAT Credit

The balance CENVAT and input VAT credit available on the last day, prior to date on which GST is implemented, can be carried forward as Input credit.

What does this mean?

  • The closing balance of CENVAT and input VAT credit should be reflected in the last return filed by you
  • The credit as reflecting in the return should be allowed as CENVAT and input VAT under current law, and
  • It should also be allowed as input tax credit under GST

Today, a manufacturer other than the Small Scale Industries (SSI- whose turnover does not exceed Rs 4 crores) should file their monthly returns in Form ER-1, and  SSI quarterly returns in Form ER-3. They also need to file monthly or quarterly VAT return forms, as prescribed by their respective states. The amount of CENVAT carried forward in Form ER-1 or Form ER-3 as on the last day i.e., the day before GST is implemented will be allowed to be carried forward as CGST (Central GST) input tax credit. The input VAT credit in VAT return forms will be carried forward as SGST (State GST) input tax credit.

Let’s understand this with an example –

Super Cars Pvt Ltd, a car manufacturer located in Karnataka is registered under Excise and Karnataka VAT. As on 31st March, 2017, the Form ER-1 and VAT Form 100 (monthly return form for Karnataka) of Super Cars Pvt Ltd is as given below:

FORM E.R.-1
RETURN OF EXCISEABLE GOODS AND AVAILMENT OF CENVAT CREDIT FOR THE MONTH OF MARCH AND YEAR 2017
DETAILS OF CREDIT
CENVAT
AED_TTA
NCCD
ADE_LVD_CL_85
ADC_LVD_CT_75
EDU_CESS
SEC_EDU_CESS
SERVICE_TAX
EDU_CESSST
SEC_EDU_CESS_ST
Closing Balance 25,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

 

Form VAT 100 (See rule 138)
RETURN
Tax period (month/quarter) March, 2017
Credit/excess payment carried forward 5,000.00

 

As per Form ER-1 and VAT Form 100 of March 2017, Super Cars Pvt Ltd has a closing CENVAT balance of Rs 25,000 and input VAT credit of Rs 5,000. Can Super Cars Pvt Ltd. carry forward the CENVAT and input VAT credit?

Yes, the closing CENVAT balance of Rs 25,000 and Input VAT of Rs 5,000 are fully eligible for Super Cars Pvt Ltd to carry forward. This is because Super Cars Pvt Ltd. satisfies all the 3 conditions explained below:

  • The CENVAT of Rs 25,000 and input VAT of Rs 5,000 are carried forwarded in the return.
  • Under the current statute, CENVAT and Input VAT are allowed as Input Tax Credit.
  • In GST, the same is allowed as Input Tax Credit.

Now, for Super Cars Pvt Ltd, CENVAT will be a CGST credit, and Input VAT will be carried forwarded as SGST credit. This can be utilized to set-off the liabilities in the order as prescribed.

Scenario 2: Unavailed CENVAT credit and Input VAT on capital goods

Currently, under Central Excise, CENVAT credit should be availed to the extent of 50% in the current year, and the remaining in the subsequent year. Similarly, VAT paid on purchase of capital goods will not be fully available as Input VAT immediately. Depending upon the state VAT laws and the type of capital goods purchased, the Input VAT can be availed,

  • In instalments spread over different financial years
  • As credit after commencement of commercial production
  • At reduction value, and so on.

Due to this prevailing restriction for availing CENVAT credit on capital goods, there could be some unavailed CENVAT and Input VAT on the date of transitioning to GST.

Let us discuss with an example to understand better

Super Cars Pvt Ltd purchased machinery on 1st February, 2017. The details of the transaction are shown below:

Particulars Amount (Rs)
Machinery 1,00,000
Excise Duty @12.5% 12,500
VAT @14.5% 16,313
Total 1,28,813

 

As per the current CENVAT provisions, Super Cars Pvt Ltd is allowed to avail CENVAT up to 50% in the current year, and the remaining during the subsequent years. Also, according to the VAT provisions of Karnataka, input VAT credit can be availed only after commencement of commercial production. Let’s assume that commercial production was to begin in the month of June’17.

Considering the scenario – Super Cars Pvt Ltd availed

  • 50% CENVAT i.e. Rs 6,250 in the current year (2016-17).
  • Remaining CENVAT of Rs 6,250 in subsequent year (2017-18).
  • Input VAT credit after commencement of commercial production, eligible in 2017-18.

Will Super Cars Pvt Ltd be allowed to carry forward the unavailed CENVAT of Rs 6,250 and input VAT credit of Rs 16,313 on transition to GST?

Yes, Super Cars Pvt Ltd is allowed to carry forward the unavailed CENVAT credit on capital goods, provided these conditions are satisfied:

  • Under the current statute, CENVAT and input VAT are allowed as input tax credit.
  • It is admissible as input tax credit in GST.

Super Cars Pvt Ltd satisfies all the conditions, and they are eligible to carry forward the CENVAT and input VAT credit.

GST Composition Levy Explained

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composition-levy-explained-copy-704x286

The current state indirect tax regime has provided a simpler compliance for small dealers known as the Composition Scheme. Under this scheme you,

  • Pay taxes only at a certain percentage of turnover
  • File periodic returns only (usually on a quarterly basis)
  • Have an option of not having to maintain detailed records or follow tax invoicing rules
  • Are not allowed to take Input Tax Credit (ITC)
  • Are not allowed to collect tax on sales

Thus for smaller businesses, it is simpler to calculate tax liability. This saves time and energy involved in maintaining detailed records.

Let us understand how the composition scheme is different with the following example:

Composition Tax

Composition Levy in the GST Regime

Similarly, the same benefit is provided under the GST regime. Small dealers and businesses could opt for the composition scheme known as Composition Levy. Under this scheme, a Composite Tax Payer pays tax only at a certain percentage of his turnover.

Threshold Limit

  • NE Including Sikkim – Aggregate turnover of the person having same PAN of above Rs 10 lakhs during the financial year but does not exceed Rs 50 lakhs.
  • Rest of India – Aggregate turnover of the person having same PAN of above Rs 20 lakhs during the financial year but does not exceed Rs 50 lakhs.

Rate of Levy

  • Rate of levy is yet be notified
  • Rate of levy will not be less than 1%

Conditions for a Composite Tax Payer

Apart from the threshold limit, the following conditions are applicable for a composite tax payer:

  • No Interstate supplies – A composite tax payer should not engage in interstate supply of goods and / or services and imports.
  • Payment of composition tax – If the composite tax payer is in the trade of supplying goods and services, then composition levy will be applicable for both supply of goods and supply of services.
  • Does not have to collect tax – The composite tax payer does not have to collect tax on all his outward supply of goods and / or services.
  • Applicable for all business verticals under the same PAN – Composition levy will be applicable for all business verticals operating within state or interstate under the same pan.
    What does this mean?
    An individual with different business verticals, like:

    • Mobiles & Accessories
    • Stationery
    • Franchisee

    In the above scenario, the composition scheme will be applicable for all three business verticals. The dealer cannot opt for any one business vertical to fall under the composition scheme.  For example, if the business vertical’s place of business is in Karnataka & Kerala for a single PAN, each of the business vertical in that particular state should have only ‘Intra-State(within state)’ supplies.

  • Cannot claim Input Tax Credit – The composite tax payer is not eligible to claim input tax credit on all his inward supply of goods and / or services.
    What does this mean?
    If a dealer chooses to be a composite tax payer, he cannot claim input tax credit even if he makes taxable purchases from a regular taxable dealer. Ideally, the taxable amount would be added to the composite tax payer’s cost.

Return Forms for a Composite Tax Payer

A composite tax payer is required to file quarterly return and annual return. Types of returns and details to be furnished are explained below:

Return Type Frequency Due date Details to be furnished
Form GSTR-4A Quarterly — Auto-populated details of inward supplies made available to the recipient registered under composition scheme on the basis of FORM GSTR-1 furnished by the supplier.
Form GSTR-4 Quarterly 18th of succeeding month All outward supplies of goods and services including auto-populated details from Form GSTR-4A and tax payable details. Details of any additions, modifications, or deletions in Form GSTR-4A should also be submitted in Form GSTR-4.
Form GSTR-9A Annual 31st December of next fiscal Consolidated details of quarterly returns filed along with tax payment details.

 

In the current composition scheme, a composite dealer has to declare only the aggregate turnover of sales. He is not required to declare invoice wise details. In GST, the composite tax payer will file his returns with the invoice wise details of inward supplies which is auto-populated based on Form GSTR-1 filed by his supplier along with the aggregate turnover of outward supplies.

Tally.ERP 9 Series A Release 5.4.8, November, 2016

Posted on by Tally Academy

The new Tally.ERP 9 Release 5.4.8 is available now!

Whats new in Tally.ERP 9 Release 5.4.8

  • In Release 5.4.8, several product improvements and enhancements have been made in areas related to
    • Accounting,
    • Data Management,
    • Inventory,
    • Import/Export,
    • e-mailing,
    • TCS,
    • TDS,
    • VAT, and
    • remote accessibility.

Product Improvements

Accounting Vouchers

  • When a receipt voucher was created by allocating the entire receipt amount to On account in Bill-wise Details screen, and this receipt voucher was later altered to adjust against a sales bill for a partial amount, the sales bill value was not appearing in the Amount field. The Amount field was displaying the entire value of the receipt voucher. This issue is resolved.

Accounting Reports

  • When Cash Flow or Fund Flow report was exported month-wise to any format, the data in the exported file appeared only for the first month. For the remaining months, the data was blank. This issue is resolved.

  • In Balance Sheet columnar view (generated from horizontal format), the negative balances of sub groups belonging to any group were displayed as positive. This issue is resolved.

Contra Vouchers

  • While recording contra vouchers in single or double entry mode, by using cash ledgers created under the Cash-in-Hand group, in the Denominations For window under Bank Allocations, the denomination of 2000 is now provided.

Cash Deposit Slip

  • While printing the Cash Deposit Slip, if you have enabled Print Cash Deposit Slip?, the Cash Denomination section now displays the denomination of 2000. The denomination of 2000 is now displayed in the printed Cash Deposit Slip.

Data Management

  • The error Debug location error Internal error. MsgFile::Walk function status is fixed. If you are accessing Tally data from a shared network location, we urge you to:

TDS

  • A debit note recorded against a TDS purchase transaction with both, TDS and service tax ledgers, was being listed under Uncertain Transactions in TDS Form 26Q or Form 27Q report (with the exception type Expenses/purchase returns not linked with expense/purchase transaction). This issue is resolved.
  • When TDS expenses were booked against two parties, using same TDS nature of payment, and
    • Transactions recorded with the first party were for an amount greater than the single bill value.
    • Transactions recorded with the second party were for an amount lesser than the single bill value.

The value of transactions made with the second party were combined with transactions made with the first party, and displayed under Deduction at Normal Rate in TDS Form 26Q report. This issue is resolved.

VAT

  • A provision is made to copy the default accounting allocation configured in an item master to other stock items or groups.
  • The triangulation report is enhanced to display all tax liabilities under one heading – Sales/Liability. In case of purchases from unregistered dealers, the amount of tax liability recorded in the books and liability not recorded are displayed under different rows for each tax rate. This makes it convenient to know the tax liability.
  • In stock item master, when MRP was enabled and Tax Rate was provided, the Tax Rate updated last in the item master was applied for all items, when opened in alteration mode. This issue is resolved.
  • On drilling down from the triangulation report to the Voucher Register, the transaction in the Voucher Register was displayed in the order in which it was recorded, and not date-wise. This issue is resolved.
  • While printing sales invoice in simple format from display mode, the VAT ledger name and amount were not printed. This issue is resolved.

Payroll

  •  Increase in minimum charges payable for Employer PF Administrative and Employer EDLI Administrative to Rs. 500/- and Rs. 200/- respectively, is supported.

 

And more…..

 

Click here for release notes

Click here for download

How to File Your GST Returns

Posted on by Tally Academy

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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

Available new stat 269 from 7th November, 2016

Posted on by Tally Academy

New Stat.900 Version is available free for existing Tally User

Major Enhancement are :

Vat

Jharkhand :

    • As per the notification, effective from 04 Nov 2016, the following VAT classifications are provided to support the revised VAT rate from 5% to 5.5% :
      • Input VAT @ 5.5%/Purchase @ 5.5%
      • Interstate Purchases @ 5.5%
      • Output VAT @ 5.5%/Sales @ 5.5%
      • CST @ 5.5%/Interstate Sales @ 5.5%
      • Purchase From URDs – Taxable Goods @ 5.5%
      • Purchases – Capital Goods @ 5.5%
      • Purchase Tax @ 5.5%
      • Output VAT – Works Contract @ 5.5%/Sales – Works Contract @ 5.5%
    • As per the notification, effective from 04 Nov 2016, the following VAT classifications are provided to support the revised VAT rate from 14% to 14.5% :
      • Input VAT @ 14.5%/Purchase @ 14.5%
      • Interstate Purchases @ 14.5%
      • Output VAT @ 14.5%/Sales @ 14.5%
      • CST @ 14.5%/Interstate Sales @ 14.5%
      • Purchase From URDs – Taxable Goods @ 14.5%
      • Purchases – Capital Goods @ 14.5%
      • Purchase Tax @ 14.5%
      • Output VAT – Works Contract @ 14.5%/Sales – Works Contract @ 14.5%

Note: Currently, the values from transactions recorded using the above classifications are captured in the VAT Computation report. In future releases, the relevant VAT forms will be enhanced to capture these values.

And more….

Tally.ERP 9 Series A Release 5.4.7, November, 2016

Posted on by Tally Academy

The new Tally.ERP 9 Release 5.4.7 is available now!

Whats new in Tally.ERP 9 Release 5.4.7

  • With this release, you can export data to the latest excel e-filing templates of Bihar.

Release 5.4.7 – Highlights

VAT

Bihar

  •  New tax rates of 6% and 15%, and VAT Schedule III – A for 5% are supported in Accounts and Inventory masters as per latest e-filing requirements.

  • You can now export data to the latest excel templates of VAT and CST forms, and annexures for e-filing.

 

Click here for release notes

Click here for download

What are the Types of Returns Under GST?

Posted on by Tally Academy

typesofgst-1-e1476366456798

Consider what happens today. A manufacturer who is compliant under Central Excise, Service Tax, and VAT has to file returns as specified by each of the states.  The manufacturer has to deal with returns, annexures, and registers for Excise, Service tax and VAT with monthly, quarterly, half-yearly and yearly periodicity.

With GST in place, it does not matter whether you are a trader, manufacturer, reseller or a service provider, you only need to file GST returns.

Wow! This sounds good. Let us understand different types of return forms in GST.

Under GST, there are 19 forms for filing of returns by tax payers. All these forms are required to be e-filed. The details of each form are listed below along with details of applicability and periodicity.

Regular Dealer

Form Type Frequency Due Date Details to be Furnished
Form GSTR-1 Monthly 10th of succeeding month Furnish details of outward supplies of taxable goods and/or services affected
Form GSTR-2A Monthly On 11th of succeeding Month Auto-populated details of inward supplies made available to the recipient on the basis of Form GSTR-1 furnished by the supplier
Form GSTR-2 Monthly 15th of succeeding month Details of inward supplies of taxable goods and/or services claiming input tax credit. Addition (Claims) or modification in Form GSTR-2A should be submitted in Form GSTR-2.
Form GSTR-1A Monthly 20th of succeeding month Details of outward supplies as added, corrected or deleted by the recipient  in Form GSTR-2 will be made available to supplier
Form GSTR-3 Monthly 20th of succeeding month Monthly return on the basis of finalization of details of outward supplies and inward supplies along with the payment of amount of tax
Form GST ITC-1 Monthly — Communication of acceptance, discrepancy or duplication of input tax credit claim
Form GSTR-3A — — Notice to a registered taxable person who fails to furnish return under section 27 and section 31
Form GSTR-9 Annually 31st Dec of next fiscal Annual Return – furnish the details of ITC availed and GST paid which includes local, interstate and import/exports.

 

Composite Tax Payer

Return Type Frequency Due Date Details to be Furnished
Form GSTR-4A Quarterly — Details of inward supplies made available to the recipient registered under composition scheme on the basis of Form GSTR-1 furnished by the supplier
Form GSTR-4 Quarterly 18th of succeeding month Furnish all outward supply of goods and services. This includes auto-populated details from Form GSTR-4A, tax payable and payment of tax.
Form GSTR-9A Annual 31st Dec of next fiscal Furnish the consolidated details of quarterly returns filed along with tax payment details.

 

Foreign Non-Resident Taxpayer

Return Type Frequency Due Date Details to be Furnished
Form GSTR-5 Monthly 20th of succeeding month or within 7 days after the expiry of registration Furnish details of imports, outward supplies, ITC availed, tax paid, and closing stock

 

Input Service Distributor

Return Type Frequency Due Date Details to be Furnished
Form GSTR-6A Monthly 0n 11th  of succeeding month Details of inward supplies made available to the ISD recipient on the basis of Form GSTR-1 furnished by the supplier
Form GSTR-6 Monthly 13th of succeeding month Furnish the details of input credit distributed

 

Tax Deductor

Return Type Frequency Due Date Details to be Furnished
Form GSTR-7 Monthly 10th of succeeding month Furnish the details of TDS deducted
Form GSTR-7A Monthly TDS certificate to be made available for download TDS Certificate – capture details of value on which TDS is deducted and deposit on TDS deducted into appropriate Govt.

 

E-commerce

Return Type Frequency Due Date Details to be furnished
Form GSTR-8 Monthly 10th of succeeding month Details of supplies effected through e-commerce operator and the amount of tax collected on supplies

 

Aggregate Turnover Exceeds 1 crore

Return Type Frequency Due Date Details to be furnished
Form GSTR-9B Annually Annual, 31st Dec of next fiscal Reconciliation Statement – audited annual accounts and a reconciliation statement, duly certified.

 

Final return

For taxable person whose registration has been surrendered or cancelled

Return Type Frequency Due Date Details to be furnished
Form GSTR-10 Monthly Within 3 months of cancellation of registration Furnish details of inputs and capital goods held, tax paid and payable.

 

Government Departments and United Nation Bodies

Return Type Frequency Due Date Details to be furnished
Form GSTR-11 Monthly 28th of succeeding month Details of inward supplies to be furnished by a person having UIN