Rules for GST Invoices

 Fundamentally, invoices are documents which notify a buyer of the legal obligation to pay money against buying of goods/services.    Credit matching and reconciliation depends on the invoices uploaded by tax payers. Businesses have to make sure that invoice formats obey the GST guidelines. The government has notified invoicing rules along with a template of invoice GST…

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Input Tax Credit

GST structure allows taxpayers to claim input tax credit tax. In simple terms, while paying tax on output, you can subtract the tax you have already paid on inputs and pay only the balance amount. How does it work?   At each stage of the supply chain, the buyer gets credit for the input tax paid. They…

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Reverse Charge Mechanism

Typically,business owners collect taxes on behalf of the customers. Then they pay it to the government. Reverse charge is when the buyer pays the tax directly to the government.  The responsibility of reverse charge can either rest completely on the buyer. In certain special cases, it can be partially/jointly borne both by the buyer and the…

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Composition Scheme

Registration is mandatory for manufacturers, traders and service providers. The normal registered tax payers have to file 3 monthly returns and issue GST compliant invoices to claim Input Tax credit. The Council felt that the small and medium enterprises would not be technologically equipped. So, the government introduced Composition scheme under GST. It is an extension to…

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Prosecution & Arrest

Prosecution under GST Apart from monetary fines and penalties, defaulters and repeat offenders can also face prosecution under GST.  Any person who commits the following offences (i.e., deliberate intention of fraud) is liable to prosecution. This means that they will face criminal charges. Supplies any goods/services without an invoice to evade tax Issues invoice without supplying any…

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Penalties under GST

A penalty simply refers to “a punishment imposed for breaking a law, rule, or contract”. The word “penalty” is not specifically defined in GST. Any taxpayer committing an offence will be subject to a penalty or punishment. The penalties under GST could include monetary fines or a jail term, depending on the severity of their…

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Types of Offences

An offence means a violation of a law or breaking a rule which amounts to an illegal act. Simply put, breaking or violating any provision of the GST Act and GST rules is an offence. The Government lists the types of offences that will invoke penalties. The penalties and fines for the offences under GST…

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GST Advance Ruling

Advance tax ruling is an interpretation of law in the written format. In the previous tax regime, advance ruling was available only to specific people. But under GST, advance ruling facility is available for registered and unregistered people. Under the GST regime, advance rules are clearly-written decisions provided by tax officials. In other words. advancing…

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Demand & Recovery

Demand The Income Tax department uses demand and recovery procedures when the tax liability and the actual tax amount paid do not match. After conducting audit and assessment of the taxpayer, the tax official sends a notice to the taxpayer demanding payment of the taxes owed. This can happen in the following cases: Unpaid or short…

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Assessment under GST

An assessment is a process used to calculate a taxpayer’s tax liability. In other words, how much tax they should pay. There are following types of Assessment under GST: 1. Self Assessment under GST Under GST, every registered taxpayer will assess the tax amount they must pay and file their periodic returns on time. The…

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