Tuesday, April 25, 2017

How to Make a Sale under GST

 by CA. Sandeep Choudhary

The procedure to be followed before EVERY SALE is as under:

1.     File Part A of Form GST INS-01 providing details of the goods as well as recipient.

2.     Then, file Part B of Form GST INS-02 providing details of the transporter.

3.     GSTN will then generate e-way bill.
a.     E-way bill is mandatory for sale within the state also.
b.     E-waybill is required in case of supply by a Composite Dealer also.
c.      E-waybill is required whether the goods are taxable or exempt.
d.     Only supply below Rs. 50,000/- is exempt from e-waybill.
e.      E-way bill may be generated by transporter or recipient also.

4.     Supplier, transporter and recipient will receive a unique EBN (e-way bill number) on their registered mobile number. Your e-way bill is valid for the following period:
Distance
Validity Period
Less than 100 Km
1 day
100 to 300km
3 days
300 to 500km
5 days
500 to 1000km
10 days
1000 km or more
15 days
Period is calculated from the time at which e-way bill is generated.

5.     Now, prepare 3 copies of Tax Invoice:
a.     Original for Recipient
b.     Duplicate for Transporter
c.      Triplicate for Supplier
Note: In case of Composite Dealer or supply of Exempted Goods, there will a Bill of Supply in place of Tax Invoice.

6.     Traders may please note that additional charges (such as Packing charges, loading charges, delivery charges, transportation, transit insurance etc.) are in the nature of supply of service. Accordingly, GST will be levied on such charges also. The current practice of computing tax and then adding such charges will not sustain in GST regime.

7.     Ensure that the Tax invoice contains all the particulars mentioned in the checklist below. Charge CGST and SGST for supply within the state. Charge IGST for inter-state supplies. 

8.     Issue Debit Note/Credit Note for any modification in Tax Invoice.

9.      Transporter must carry a copy of the Tax Invoice and e-way bill/EBN.
a.     If goods are moved from one vehicle to another, new e-way bill has to be generated by transporter.
b.     If a transporter is carrying several consignments, he must upload all EBNs and generate a consolidated e-way bill (Form GST INS-02).
c.      E-way bill may be cancelled within 24 hours.
d.     Recipient may reject the e-waybill within 72 hours. Else, it is deemed that he has accepted the consignment.

10.             If supplier has received any advance, he is required to pay tax on such advance and to issue a Receipt Voucher. Further, the recipient is required to reverse input tax credit if he does not pay supplier within 180 days. Thus, it is desirable to maintain payment records on bill-to-bill basis.



Checklist for Tax Invoice
a.     Name, address and GSTIN of the supplier
b.     a consecutive serial number
c.      date
d.     name, address and GSTIN of the recipient
e.      name and address of the recipient and the address of delivery, along with the name of State and its code, if recipient is un-registered (not required for sale below Rs. 50,000/=)
f.       HSN code of goods
g.     description of goods
h.     quantity and unit
i.        total value
j.        taxable value
k.     rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
l.       amount of tax charged (central tax, State tax, integrated tax, Union territory tax or cess)
m.  place of supply along with the name of State, in case of a supply in the course of inter-State trade or commerce
n.     address of delivery where the same is different from the place of supply
o.     whether the tax is payable on reverse charge basis
p.    signature

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