Common Queries About GST

The introduction of Goods and Services Tax (GST) is a significant step in the field of indirect tax reforms in India. The merger of a large number of Central and State taxes into a single tax would diminish the cascading effect of taxes and pave the way for a common national market, thereby making administration effortless.

Key points:

● GST would be applicable on the supply of goods or services as against the present concept of tax on the manufacture and sale of goods or services.

● GST would be a destination-based tax as against the present concept of origin-based tax.

● The list of exempted goods and services would be kept to a minimum and harmonized for the Centre and the States as far as possible.

● Exports would be zero-rated.

● IGST credit to be fully utilized before using credit of CGST or SGST for tax payments.

● Credit of CGST paid on inputs may be used only for paying CGST on the output. Credit of SGST paid on inputs may be used only for paying SGST on the output.

The frequently asked queries about GST are listed below:

1. How to adjust input credit of IGST while making payments towards GST liabilities?

2. I have sold goods on 28 Jun 2017, but need to record a sales return on 1 Jul 2017. How do I record my credit note for the sales return?

3. How do we calculate IGST, when buyer and consignee are in different locations?

4. What are the different GST returns that a registered person needs to file?

5. What does invoice matching mean under the GST regime?

6. How can I get the HSN code for my goods and services?

7. What is the format of GSTIN?

8. Are all taxes subsumed under GST?

9. Are excise and custom duty applicable on tobacco and petro-chemical products even after GST implementation?

10. One of my clients is importing goods. According to GST returns, we need to upload only sales. How about import purchase? How will it be reflected on my GST portal?

11. If there are pending returns to be filed from the VAT regime, will they be carried forward to GST?

12. Is GST content available for Tally Academy Partners to train their students?

13. Where can I find the schedule for GST seminars or workshops?

14. What is the procedure to register for GST?

15. I am a Tally partner/customer. How do I get trained on GST?

16. What is CPIN and how many digits does it have? What is the validity period of CPIN? How is it different from CIN?

17. What is the criteria and eligibility to claim  ITC under the GST regime?

18. If my GSTR-1 and GSTR-2A are all correct, can I upload my GSTR2 and GSTR 3 together?

19. What is the difference between B2C large and B2C small invoices?

20. Where can I get the information on reverse charge, the applicable tax rates and liability, and if the service is eligible for claiming input credit?

21. How to file TRAN-1?

22. What are the tax rates applicable for services under Goods Transport Agency (GTA)?

23. Do I need to start the voucher numbering for sales afresh under GST?

24. Where can I get the details of HSN codes?

25. Is it required to maintain separate voucher types for sales made to registered and unregistered dealers? Also, is it required to maintain separate serial numbers for each type of sales?

26. Is it mandatory to print HSN code in invoices? What are the threshold limits of turnover based on which I need to print HSN on invoices?

27. Should a GTA providing service to an unregistered person, charge GST on forward charge or reverse charge?

28. For a GTA, the recipient liability arises after making payment to the service provider, but in Tally.ERP 9, why is it appearing immediately after recording an invoice?

29. What has to be done if a GTA is registered under GST, but does not charge GST in his invoice?

30. Can I avail reverse charge credit on exempt goods?

31. Is interstate purchase from unregistered dealer, exempt from tax?

32. As a registered GTA, how can I file GSTR-1 for transporter when GST is not charged?

33. If a GTA is registered, is it mandatory to adopt forward charge?

1. H ow to adjust input credit of IGST while making payments towards GST liabilit ies?

Effective from 1st February 2019, IGST credit has to be fully utilized before using CGST or SGST credits for tax payments.

Prior to the amendment in the GST Act, input tax credit was allowed to be adjusted against GST liability in the order shown below:

For detailed information, refer to How to Set Off Input Tax Credit Against Tax Liability in the GST Regime .

2. I have sold goods on 28 Jun 2017, but need to record a sales return on 1 Jul 2017. How do I record my credit note for the sales return?

Even if VAT rates are levied in the sales invoices recorded on 28 Jun 2017, you need to record the credit note with the GST rates applied to the items returned on 1st Jul 2017.

3. How do we calculate IGST, when buyer and consignee are in different locations?

IGST is applicable on the goods and services if the buyer's state is different from your business location. Consignee in such cases may be in a different location where the goods can be delivered. Refer to Interstate sales for more information on calculating IGST.

4. What are the different GST returns that a registered person needs to file?

The details of GST returns to be filed is available on our blog for GST at http://blogs.tallysolutions.com/types-of-gst-returns/

5. What does invoice matching mean under the GST regime?

Invoice matching is a mechanism based on which the sales invoices submitted by a supplier is matched against the corresponding purchase invoices submitted by a buyer. According to the Goods and Services Tax (GST) law, a buyer can claim input tax credit on purchases only if the outward supply filed in GSTR-1 by the supplier matches the inward supply filed in GSTR-2 by the buyer. Invoice matching is done automatically based on the data filed in GSTR-1 and GSTR-2 by both parties involved in a transaction.

6. How can I get the HSN code for my goods and services?

You can find the chapter-wise-rate-wise GST rate schedule for goods and services on the website: http://www.cbec.gov.in/htdocs-cbec/gst/index . Alternatively, contact your CA/business consultant for more details.

7. What is the format of GSTIN?

GSTIN is a 15-digit unique registration number provided to a taxpayer upon successful registration of his business details on the GST portal.

The following table lists the state-wise code used in generating the GSTIN:

8. Are all taxes subsumed under GST?

The following lists the taxes that will be replaced by GST:

9. Are excise and custom duty applicable on tobacco and petro-chemical products even after GST implementation?

All goods and services are likely to be covered under GST except the following:

● Alcohol for human consumption

● Electricity

● Sale/purchase of Real Estate

● Five specified petroleum products (to be brought under GST later on recommendation of GSTC)

● Tobacco products

10. One of my clients is importing goods. According to GST returns, we need to upload only sales. How about import purchase? How will it be reflected on my GST portal?

Imports of goods and services are treated as inter-state supplies and therefore IGST will be levied on the import. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will be accrued to the State where the imported goods and services are consumed. Full and complete set-off will be available on the GST paid on import on goods and services.

In general, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on you as the recipient under the reverse charge mechanism. Please note that import purchases will be captured in GSTR-2 in Column 5 - Goods/capital goods received from overseas (Import of goods).

For more information, you can refer to the linked document (http://www.cbec.gov.in/resources/htdocs-cbec/gst/draft-return-formats-26092016.pdf).

11. If there are pending returns to be filed from the VAT regime, will they be carried forward to GST?

In order to carry forward your available ITC from the VAT regime to GST, you need to ensure that all your compliance formalities in VAT, including VAT returns and payments, are fulfilled. For this purpose, please ensure that all returns are filed and closed in VAT. For more details, you may contact your chartered accountant or visit our blog.

12. Is GST content available for Tally Academy Partners to train their students?

GST training has already been scheduled for all registered Tally Educational Institutes, and a PPT document on GST has been shared accordingly. The recorded webinar videos are also available on our blog for GST at http://blogs.tallysolutions.com/gst-webinars/ .

13. Where can I find the schedule for GST seminars or workshops?

The GST workshop or awareness camp is scheduled for customers, partners, and students. For details of the venue and date, visit our blog post (https://tallysolutions.com/events/).

14. What is the procedure to register for GST?

It is assumed that all existing Central Excise taxpayers are registered under State VAT Department. All existing taxpayers and VAT dealers will be given a provisional ID and password by the state VAT authority. Create your username and password at the GST common portal using this provisional ID and password.

GST common portal: https://www.gst.gov.in/

The detailed procedure for registering is available at: https://tutorial.gst.gov.in/userguide/#t=Enrolment_of_Existing_taxpayer_with_Provisional_ID_and_Password.htm

15. I am a Tally partner/customer. How do I get trained on GST?

Customers can join the Upcoming Webinars to know more about GST. Alternatively, contact your partners for a product demo, if needed.

Partners can contact their Business manager or Region Sales Manager for more details on the scheduled training in their location.

16. What is CPIN and how many digits does it have? What is the validity period of CPIN? How is it different from CIN?

CPIN - Common Portal Identification Number is generated along with the GST payment challan. It is a 14 digit unique number to identify the challan. The CPIN is valid for 15 days.

CIN - Challan Identification Number is a 17-digit number consisting of a 14-digit CPIN plus a 3-digit bank code. CIN is generated by the authorised banks/RBI when payment is actually received and credited to the department. CIN is communicated to the taxpayer as well as the department after the payment of GST.

17. What is the criteria and eligibility for claiming ITC under the GST regime?

Under the GST regime, input tax credit can be availed by every registered taxable person on all inputs used or intended to be used in the course of or for furtherance of business. However, claiming ITC is subject to certain conditions:

o You should have the Tax Invoice/Debit or Credit Note issued by a registered person.

o The goods/services should have been received.

o You should have filed GSTR-3 for the related month

o The tax charged has been paid to the government by the supplier, either in cash or through utilization of ITC.

To know about the criteria and eligibility in detail for claiming ITC, refer to the following blogs:

o Your checklist for availing input tax credit

o Scenarios where you cannot avail input tax credit

Refer to Transferring Tax Credits of VAT, excise and service tax to GST , for more information.

18. If my GSTR-1 and GSTR-2A are all correct, can I upload my GSTR2 and GSTR 3 together?

Yes, you can upload GSTR-2 and GSTR-3 together on the same day. GSTR is an auto-populated return, and therefore, you need to download the same on or after 20th of the month when the return was filed. This helps in calculating GST liability payable after adjusting the provisional ITC. However, you can pay your GST liability in advance which will be credited to your e-cash leger on the GST portal. While generating GSTR-3, the same e-cash ledger will be debited up to the payable amount.

19. What is the difference between B2C large and B2C small invoices?

To know more, refer B2C description in GSTR-1 and Recording B2C invoices in Tally.ERP 9 .

20. Where can I get the information on reverse charge, the applicable tax rates and liability, and if the service is eligible for claiming input credit?

The details on reverse charge are available on our blog for GST at:

http://blogs.tallysolutions.com/managing-reverse-charge-gst/

http://blogs.tallysolutions.com/gta-under-gst-and-the-gst-rates-applicable/

http://blogs.tallysolutions.com/tax-liability-itc-on-gta-services-under-gst/

21. How do I file Form GST TRAN-1?

Refer to our blog for detailed information.

22. What are the tax rates applicable for services under Goods Transport Agency (GTA)?

Refer to our blog for details on:

o Goods Transport Agency under GST and the Rates Applicable

o Tax liability and ITC on GTA Service under GST

23. Do I need to start the voucher numbering for sales afresh under GST?

You need to maintain unique sequential voucher numbers for your sales invoices under GST. You can use the voucher numbering feature in Tally.ERP 9 to set the voucher number which has to be unique and sequential, based on your business needs.

24. Where can I get the details of HSN codes?

You can view the list of HSN for goods from http://cbec.gov.in/ .

25. Is it required to maintain separate Voucher types for sales made to registered and unregistered dealers? Also, is it required to maintain separate serial numbers for each type of sales?

You need not maintain separate voucher types for sales to registered and unregistered dealers. And, you need to maintain unique sequential voucher numbers for all your sales invoices under GST.

26. Is it mandatory to print HSN code in invoices? What are the threshold limits of turnover based on which I need to print HSN on invoices?

If your turnover is:

● Upto Rs. 1.50 Crores - Need not print HSN code in your invoice.

● From Rs. 1.50 to 5 Crores - Print 2 digits of HSN code in your invoice.

● More than Rs. 5 Crores - Print 4 digits of HSN code in your invoice.

You can refer to the notification for details.

27. Should a GTA providing service to an unregistered person, charge GST on forward charge or reverse charge?

The tax should be charged based on forward charge even if the service is categorized under reverse charge.

28. For a GTA, the recipient liability arises after making payment to the service provider, but in Tally.ERP 9, why is it appearing immediately after recording an invoice?

There is no such condition for availing input credit. You can avail input tax credit on the day of booking expense, even if the payment to the service provider or department is not made.

29. What has to be done if a GTA is registered under GST, but does not charge GST in his invoice?

The recipient should insist for a valid invoice. The invoice should have details of tax details (tax analysis), which is not added to the invoice value, with an indication that the invoice is under reverse charge.

30. Can I avail reverse charge credit on exempt goods?

Fully exempt supply does not qualify for input tax credit.

31. Is interstate purchase from unregistered dealer, exempt from tax?

Interstate purchase from unregistered dealer is not allowed, other than for handicraft and raw cotton.

32. As a registered GTA, how can I file GSTR-1 for transporter when GST is not charged?

The assessees registered as Goods Transport Agency (GTA) should file GSTR-1 returns by marking the Invoice Type as Reverse Charge.

33. If a GTA is registered, is it mandatory to adopt forward charge?

As GTA is listed under reverse charge supplies, the liability or tax credit is also under reverse charge. If the supply is being made to unregistered dealer, it attracts forward charge.