How to decide IGST, CGST, SGST while raising invoices in GST Regime
Invoice – when to raise and what are the contents?
Invoice to be raised before or at the time of removal of goods for stock transfer Contents of the Invoice:
- Name, address and GSTIN of the supplier.2. A consecutive serial number containing alphabets, numerals and/ or special characters unique for a financial year.3. Date of its issue.4. Name, address and GSTIN or UIN of the recipient if he is registered.5. Name and address of the recipient and the address of delivery, along with the name of State and its code if he is un-registered. Only in cases where the value of taxable supply is fifty thousand rupees or more.6. HSN code of goods or Accounting Code of services.7. Description of goods or services.8. Quantity in case of goods and unit or Unique Quantity Code thereof.9. Total value of supply of goods or services or both.10. Taxable value of supply of goods or services or both after taking into account discount or abatement.11. Rate of tax.12.Amount of tax charged.13. Place of supply along with the name of State, in case of a supply in the course of interState trade or commerce.14. Address of delivery where the same is different from the place of supply.15. Whether the tax is payable on reverse charge basis.16. Signature or digital signature of the supplier or his authorized representative
How to decide IGST or CGST+SGST while raising invoices:
Location of Supplier and Place of Supply In same state ⇒ Intra state transaction ⇒ CGST + SGST In different states ⇒ Inter state transaction ⇒ IGST Other points of determination: Shall be treated as supply in the course of inter state trade or commerce
When the supplier is located in India and the place of supply is outside IndiaSupply to or by a SEZ developer/ UnitSupply made to a tourist referred to in Sec. 15Supply in taxable territory – not being intra state supply and not covered elsewhere
How to decide IGST/CGST/SGST while raising invoices
Place of supply-Analyse Intrastate / Interstate Type of GST Registration
Regular, Composition, Casual Taxable person Input Service distributorLocationAdditional Place – Job workState wiseBusiness Verticals
Type of Transactions Covered
ScheduleService /GoodsComposite / MixedExempted transactions/Reverse Charge MechanismTaxable TransactionsURD purchaseHSN/ RatesOrders in hand
Transition for GST
Goods sent from agent siteGoods sent from warehouseGoods sent from transporter placeExempt v/s taxable – 2 separate invoicesComposition – Bill of SaleRegular – Tax InvoiceURD Purchase – Purchase invoiceAdvances- Receipt VoucherDiscounts/price revision – credit note/Debit NoteChanges in shipping bill formats and Bill of Entry
Goods Receipt Inwards from
VendorsStatesGodownImport
Goods sent Outwards to
DepotAgentsBranchesCustomers
Records keepings –
Formats,E-way billsInventory records and its provisions with reference to Finished Goods and Raw Material as wellDebit note and credit note
Tax Accounts
The important accounts to be maintained are of input and output accounts, transaction wise and business place wise general ledger are to be created and assigned. The accounts are to be separately. The main ledgers are
Input CGSTInput SGSTInput IGSTOutput CGSTOutput SGSTOutput IGST
Transitional impacts
Temporary provisions may be required in the system to handle scenarios, such as returns of goods sold or purchased before GST and returned after GST implementation, stock in transit during cutover activities, etc.
Open transactions, such as contracts, purchase orders, and sales orders need to be migrated to the new tax scenario. These would need changes in the system.Partially open transactions, such as goods received but invoice not booked, or goods issued for sales but not received by the customer, etc. need to be closed or reversed and migrated to the new tax scenario.
Invoice
HSN/ SAC to be mentioned in invoice, which will have to be uploaded in the GST portal.HSN Code/Accounting Code -for each line item of an invoice in case of multiple codes in an invoice.For all B2B supplies, line-item level data in case multiple tax rate or HSN/ Service Accounting Code in one invoice.The GST Rules provides that the Commissioner by notification specifythe number of digits of HSN code for goods or the Accounting Code for services, that a class of registered persons shall be required to mention, for such period as may be specified in the said notification, andthe class of registered persons that would not be required to mention the HSN code for goods or the Accounting Code for services, for such period as may be specified in the said notification.
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