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In our previous blogs, we have gone through the plethora of GST rate changes which have been introduced by the GST Council for various goods as well as services. The reduction of rates is indeed a welcome move for consumers, and at first look, it seems to be good news for traders as well – since a reduction in GST rates would essentially mean that the input tax credit being availed would be more than the tax liability for a business.
 

Under GST, for movement of goods having consignment value more than Rs 50,000, it is mandatory to generate E-way Bill.  With multiple parties involved in the movement of goods – Supplier, Recipient and Transporter – now the question arises, who should generate the E-way bill?
 

In our previous blog ‘All you Need to Know about e-way Bill under GST’, we introduced and and explained in details the provisions of E-Way bill under GST. In this blog, we will take you through the  E-way Bill format in GST.
 

 
In business, it is common to issue and receive invoices for goods or services where the price is inclusive of tax. Inclusive of tax means that the price quoted includes the value of tax. In such cases, a person has to do a back-calculation to arrive at the value of tax.
 
In this blog, we will discuss the simple formula for you to arrive at the value of tax when the price quoted for goods or services is inclusive of tax.

Formula to arrive at tax value when price is inclusive of tax

We have learnt about Tax Invoice and Bill of Supply under GST, which are to be issued at the time of supply. Once a supply is made and Tax invoice or Bill of Supply has been issued, the supply can be cancelled or modified due to various reasons. In these cases, a credit note or debit note is issued to record the cancellation or modification of the details of a supply. There are certain specified scenarios in which a debit note or credit note should be issued. Note that debit note can also be called as supplementary invoice.

In business, it is common to face scenarios where the value of tax turns out to be in decimals. How to treat such values? Should the amount of tax be retained with decimals? Or should it be rounded upward to the nearest rupee? Or should it be rounded downward to the nearest rupee? Let us first understand the methods of rounding used by businesses and later, the GST rounding rules to be used for tax values.
 

Methods of rounding for tax values
A business will usually use any of the following methods to round off tax values.

Many suppliers have defined credit terms, which require their customers to make payment for supplies by a certain date. If the payment is not made, the supplier charges interest on the amount due from the customer. One of the major questions both suppliers and customers have – is GST charged on interest payment?
 
Let us understand the common queries which tax payers have with regard to treatment of interest charged by suppliers under GST.

A continuous supply is a supply where goods or services are supplied on a recurring basis under a contract and payment for the supply is also made periodically.
For example: A contract for supply of mineral water to a company for 6 months, supply of housekeeping services to a company for a financial year, supply of broadband services, etc. Let us understand the meaning of continuous supply under GST and the time of issue of invoice in continuous supply of goods or services.
 

We have learnt about the scenarios in which a supplier should issue a Debit note in our previous blog. Debit Notes and Credit notes are instruments used to record the cancellation or modification of a supply for which Tax Invoice or Bill of Supply has already been issued. In this blog, let us understand the scenarios in which a supplier should issue a credit note under GST.
 

When to issue Credit Note under GST
A person supplying goods or services should issue a credit note in the following scenarios:

The revised draft model GST law was made available on 26th November, 2016. Key highlights of the revised Draft Model GST Law are categorized into the following sections:

• What are the changes?
• What are the new additions?
• What are the exclusions?

What are the changes?

Subject

Topic

Draft Law- 14th June, 2016

Revised Draft law- 26thNovember, 2016

Registration

Threshold limit