GST Basic Concepts of Transition and Invoice. Power Point Presentation-FAQ by Ministry of Finance

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GST Basic Concepts of Transition and Invoice-Power Point Presentation-FAQ by Ministry of Finance

GST Basic Concepts of Transition and Invoice

Question 1: I was registered under existing law. How will I get ITC as on 01st July, 2017 ?

You’ll get ITC of amount carried forward in the return for 30th June, 2017, subject to conditions below:

  • You are normal taxpayer
  • Credit is admissible as ITC in GST
  • All returns from Jan-June 2017 submitted
  • Details to be filled in table 5 of GST TRAN-1 on common portal up to 30th September, 2017

Question 2: I was registered under existing laws. What about un-availed credit of Capital goods not carried forward in return?

You’ll get ITC of un-availed amount of duty paid on capital goods not carried forward in the return but relevant details need to be filled in table 6 of GST TRAN-1 on common portal up to 30th September, 2017

Question 3: I was a small business unregistered under existing laws. Will I get ITC if I register as normal taxpayer?

Yes. Credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on 01st July, 2017 will be available subject to specified conditions.

Question 4: I was registered under existing law as composition taxpayer. Will I get ITC if I register as a normal taxpayer?

Yes. Credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on 01st July, 2017 will be available subject to specified conditions.

Question 5: My supplies were exempt under existing law. Can I claim ITC if my goods becoming taxable in GST?

Yes. Credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on 01st July, 2017 will be available subject to specified conditions.

Question 6: I was registered as FSD/ SSD/registered importer/ depot of manufacturer. Can I claim ITC if I register as normal taxpayer?

Yes. Credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on 01st July, 2017 will be available subject to specified conditions:

Conditions

  • Inputs or goods are used for making taxable supplies
  • Eligible for ITC under GST
  • Possession of invoice or documents (CTD) evidencing payment of duty
  • Invoices or other documents not issued prior to 30th June, 2016
  • File declaration of stock of duty paid goods in table 7 of GST TRAN-1 on common portal up to 30th September, 2017

Question 7: I was a small business unregistered under existing laws.  What happens if I don’t have the duty paying documents?

Scheme (for 6 months starting July 2017) for traders only subject to specified conditions:

  • ITC @ 60%/40% of GST paid where GST rate payable on the goods is above/below 18%
  • Document of procurement of goods is available

Conditions

  • Goods were not unconditionally exempt
  • ITC allowed after the GST is paid subject to the condition that benefit of such credit is passed on to the customers
  • Declaration filed in GST TRAN-2 at the end of every month

Question 8: Will I get ITC of VAT? What about ITC of CST?

Yes. ITC of VAT reflected in the last return will be allowed to be carried forward as SGST Credit.

ITC for CST (C/F/H/I forms under CST) is not allowed to be carried forward.

Question 9: I was an ISD under existing laws. Will I be able to distribute ITC related to earlier laws in GST?

ISDs will be able to distribute the credit for services received prior to 1st July, 2017, even if invoice(s) relating to such services is received on or after 1st July, 2017.

Question 10:  I was centrally registered & providing services under existing laws. Will I get ITC if I register in GST? Can I distribute it?

You can take credit of the amount of CENVAT carry forward in last return furnished under the existing law.

Such credit may be transferred to any of the registered units having the same PAN for which central registration was taken under the existing law by filing table 8 of GST TRAN-1.

Question 11:  My appeal /revision/refund relating to CENVAT/ITC is pending. What will be the fate of these proceedings?

All proceedings  under the existing laws, whether initiated before, on or after 1st July, 2017, will be disposed of in accordance with the existing law.

Refund, if admissible, will be disposed under existing laws.

Recovery will be made under GST laws if not recovered under existing laws.

Question 12: My contract was done before 1st July, 2017 but supply received after 1st July. What tax to charge?

GST will be charged if tax on supply has not been levied under the existing law.

TAX INVOICE under GST REGIME

GST Basic Concepts of Transition and Invoice

Question 13: Who can raise a tax invoice?

GST Basic Concepts of Transition and Invoice

IMPORTANT CONTENTS OF TAX INVOICE

  • GSTIN of supplier
  • Consecutive Serial Number & date of issue
  • GSTIN of recipient, if registered
  • Name & address of recipient, if not registered
  • HSN
  • Description of goods or services
  • Quantity in case of goods
  • Total Value of supply
  • Taxable Value of supply
  • Tax rate – Central tax & State tax or Integrated tax, cess
  • Amount of tax charged
  • Place of supply
  • Address of delivery where different than place of supply
  • Tax payable on reverse charge basis
  • Signature of authorised signatory

Question 14: What should be there in a tax invoice?

GST Basic Concepts of Transition and Invoice

Digits of HSN Codes to be included: Notification 12/2017-CT, dated 28.06.2017

Annual Turnover in the preceding FY

Number of Digits of HSN Code

Up to Rs. 1.5 Crore  Nil
More than Rs. 1.5 Crore and

up to Rs. 5 Crores

2
Above Rs. 5 Crores   4

Question 15: How to raise an invoice?

Supply of Goods Supply of services
Triplicate Duplicate
1.Original copy for recipient

2.Duplicate  copy for transporter; and

3.Triplicate copy  for supplier

1.Original copy for recipient; and

2.Duplicate  copy for supplier

The  serial  number  of  invoices  issued  during  a month / quarter shall  be  furnished electronically in FORM GSTR-1

Question 16: When to raise an invoice?

GST Basic Concepts of Transition and Invoice

Special cases

Type of invoice/document When to issue
Bill of supply Supply of exempted goods or services or under composition levy
Revised invoices For invoices issued during the period between effective date of registration and issuance of R.C.
Receipt voucher Receipt of advance payments
Refund voucher Return of advance payments
ISD invoices  Input Service Distributors
Other document  Insurance/ banking company/transporter/ airlines
Delivery challans In lieu of invoice in specific cases
Export invoices shall carry the endorsement: “supply meant for export on payment of integrated tax” or “supply meant  for  export under bond or letter of undertaking without payment of integrated tax”

Credit Note

GST Basic Concepts of Transition and Invoice

No time limit for issuing a CN, but liability can be adjusted only until next September after the FY in which supply was made, or until the due date for filing annual returns, whichever is earlier, provided recipient has reversed ITC

Debit Note

GST Basic Concepts of Transition and Invoice

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