GST Rules And Guidelines : Do’s And Don’ts (Format Attached)
GST (Goods and Service Tax) is a tax levied when a consumer buys a goods or services. The main aim of introducing GST is to bring all the taxes in a single umbrella. This bill helps to eliminate the cascading effect of taxes on production, distribution prices on goods & services. Goods & service tax refers to indirect tax which replaces taxes levied by the central & state government.
GST bill abolish indirect taxes like VAT, Service tax, excise, octroi. This post will brief you about GST Rules and guidelines and what you should do and what you shouldn’t
Rules & Guidelines
✓ Issue ‘Tax Invoice’ for taxable goods or services (format attached)
✓ Issue ‘Bill of Supply’ in case of exempted goods or services (format attached)
✓ Ensure different serial number for every invoice
✓ CGST, SGST to be equally charged for local sales. Example, for 12% GST sale within your state, 6% SGST and 6% CGST to be charged
✓ IGST for any interstate sale. For any sale outside your state, IGST will be imposed. Example, on supply of goods or services of 18%, from Delhi to Gurgaon or any other state, IGST to be charged at 18%.
✓ GST to be charged on any advance received against supply of goods and services. Example, If a person has given order for buying stationery amounting to Rs. 10 Lakhs and gave advance of Rs. 5 Lakhs, then he have to pay GST on that advance to the supplier at that time only.
✓ At the time of receiving advance amount, you will have to give the Receipt Voucher (format attached). Charge GST on that advance amount
✓ On sale of any cash sale of more than Rs 50,000, it is mandatory to write name and address of the buyer/service recepient
✓ Payment Voucher: A registered person who is paying tax under reverse charge mechanism shall a payment voucher at the time of making payment to the supplier. The payment voucher should contain the prescribed particulars. (format attached) Example: Payment of rent to landlord who is ot registered under GST, will amount to reverse charge mechanism. Hence, payment voucher to be issued by us to landlord.
✓ Receipt Voucher: To be issued on receipt of advance payment. (format attached)
✓ Refund Voucher: Where a receipt voucher is issued on advance payment and subsequently no supply is made and no tax invoice is issued, the registered person may issue a refund voucher to the person who had made the payment (format attached)
✓ Revised Invoice: These are to be issued against the invoices already issued during the period starting from the effective date of registration till the date of issuance of certificate of registration to him.
✓ Credit Note is to be issued where supplier has charged higher amount of tax whereas tax payable is less than actually taken from receiver in such cases supplier has to issue credit note.
✓ Debit Note is issued to the recipient for the tax amount not being charged by the supplier i.e. when supplier collects lower amount of tax than tax amount payable on such supply of goods and/or services
- Maintain record of each and every document. Pay more attention than before on record keeping
- Be very careful on charging CGST, SGST and IGST.
- Issue tax invoice on sale of taxable goods/services – Issue Bill of Supply on sale of exempted goods/services
- Take Receipt Voucher from seller whenever you pay advance
- Take tax invoice on every purchase of goods and services. Make sure it mentions advance paid earlier, if any, in that tax invoice. – Issue payment invoice is tax paid on reverse charge basis
- Inform your GSTIN / ARN to all your suppliers of Goods & Services.
- Obtain GSTIN of all Suppliers & Buyers.
- Update your accounts regularly
- Contact us whenever in doubt
- Don’t buy from unregistered dealers. You won’t get input tax credit and you will have to pay GST on their behalf, due to ‘Reverse Charge’ mechanism
- Don’t forget to issue separate serial number for invoice
- Don’t do any over writing of invoice
- Don’t cancel the invoice. Use credit note in case of cancellation of supply of goods/services
- Don’t hesitate to ask us for any clarification