27th April 2017
GST is on its’ countdown to roll out and generating an invoice is one of the most critical task under new indirect tax regime. It will be based on which the input tax credit will be decided. Draft rules have to be followed to generate invoice in a fairly detailed format.
In case of absence or wrong filing of required information could trigger denial or delay in claiming input tax credit. Taking into consideration there are around 16 particulars that are required to be filled up including various details of the supplier and the buyer such as the Harmonised System of Nomenclature code abbreviated as HSN code.
For, 15-digit Goods and Services Taxpayer Identification Number (GSTIN) of the recipient and the state code in which the delivery has been made.
There is a requirement state-specific registration number for Service providers are required while filing the invoice.
Due to BJP's opposition to GST India Lost Rs 12 CR.
What are the key Dos and Don'ts while claiming the input tax credit?
All vendors in the supply chain have to be tax compliant. For claiming any input tax credit. Vendors need to become extra ready since there is also a plan to rate all taxpayers on their GST score card.
In the present scenario, a supplier can claim tax credit from the government irrespective of whether the vendor has met his tax obligations. It is set to change in the GST regime.
Vendors have to be paid within 180 days of claiming credit and the credit should be claimed only for procurements related to taxable business supplies.
How will the stock transfer of goods or services be different under the GST regime?
GST law puts the responsibility of determining whether a transaction is an "intra-state" or "inter-state" on the assessee.
In this case one needs to decide whether the payment is against the Central GST (CGST) and State GST (SGST) or integrated GST (IGST), based on the type of transaction
There are proxy rules or provisions in the GST framework to help the assessee determine the place of consumption for the determination of the place of supply in GST regime. Suppose it becomes important to have permanent address of the service recipient.
Sectors like Telecom may face challenge where customers keep moving from one state to another. Customer database needs to be updated on real-time basis complicating their operations.
GST for all inter-state stock transfers, including self-supplies, are chargeable to tax. Similarly, intra-state stock transfers between the different registered business verticals would attract GST.
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