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FAQ's

 
What are the specific mandatory fields in an GST compliant invoice?
To issue and receive a GST compliant invoice is a prerequisite to claim ITC. If a taxpayer does not issue such invoice his customer loses ITC claim and the taxpayer loses its customers. Here we mention the mandatory fields in an invoice:
 
 
When is debit note issued?
Debit note is to be issued by supplier:
Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
 
When is credit note issued?
Credit note is to be issued by supplier:
Original tax invoice has been issued and taxable value in the invoice exceeds actual taxable value.
Original tax invoice has been issued and tax charged in the invoice exceeds actual tax to be paid.
Recipient refunds the goods to the supplier
Services are found to be deficient
 
Is it mandatory to maintain invoice serial number?
Yes, invoice serial number must be maintained strictly.
For example, if invoice is being issued with serial number as INV001, the same format must be maintained. You may change the format by providing a written intimating the GST department officer along with reasons for the same
 
What if the customer doesn't have a GST No.?
Here, you don't issue an invoice different from usual sales or purchase invoices. The only additional requirement is that you need to mention on the invoice that tax is paid on reverse charge.
 
 What is Reverse Charge?
Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed.
 
When is Reverse Charge Applicable?
1. Supply from an Unregistered dealer to a Registered dealer
If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier.
 
Points to keep in mind:
An unregistered dealer cannot make interstate supplies. This means that Reverse Charge in this case will apply only in case of intra-state supply by an unregistered dealer.
Only if the total supply from unregistered person exceeds Rs 5,000 in a day, then reverse charge will be applicable
 
2. Supply of Specific Goods or Services
 
What happens if the receiver of goods and/or services is required to pay tax under Reverse Charge but is not a registered dealer?
All persons who are required to pay tax under reverse charge have to register for GST irrespective of the threshold.
Threshold: Turnover in a financial year exceeds Rs 20 lakhs (Rs 10 lakhs for North eastern and hill states)
 
Is Input Tax Credit allowed under Reverse Charge?
Tax paid on reverse charge basis will be available for input tax credit if such goods and/or services are used, or will be used, for business. The recipient (i.e., who pays reverse tax) can avail input tax credit.