Draft GST Rules and Forms - Key Takeaways

With enactment of 101st Constitutional Amendment Act, the road to GST is clear.

On 26th September, 2016 CBEC released draft rules and forms under GST on Registration, Invoice and Payment.

GST Council has also approved of draft rules in its meeting held on 30th September, 2016.

Key takeaways of draft rules and forms are given below:

Registration

• The application for GST Registration shall be made online or through facilitation centres;
• Designated officer will examine the registration application and grant certificate with registration number within 3 working days;
• In case of deficient application, the applicant will be intimated within 3 days. Thereafter the applicant has to furnish within 7 days as sought by the designated officer. If designated officer satisfied, then he will grant certificate within 7 working days from the date of receipt of such details;
• The registration certificate must be displayed at principal place of business and at every additional place of business;
• GSTIN (i.e. registration number) must be displayed in the name board at the entry point of business premises.

Invoice

- Supplier needs to mention following details in his invoice, if recipient is unregistered and taxable value of supply exceeds Rs. 50,000:

• Name and address of recipient ;
• Delivery address along with the name of State.

- In case of interstate trade & commerce, every invoice should contain place of supply;

- Three copies of invoice should be prepared in case of goods and only two copies in case of services;

- In case of taxable services, the invoice shall be issued within 30 days from the date of services;

- No such time period prescribed in case of supply of goods;

Returns

• The registered dealer is required to file details of outward supplies in Form GSTR  - 1 electronically;
• The service recipient will receive GSTR - 2A on the basis of details furnished by supplier in Form GSTR - 1;
• The recipient will file details of inward supplies in Form GSTR - 2 on the basis of Form GSTR - 2A, which should include details like ineligible input credit and its quantum etc.;
• The registered dealer (other than composite dealer) shall file monthly return in From GSTR - 3, which includes few details of Form GSTR - 1, Form GSTR 2, Electronic - credit ledger, cash ledger and liability register;
• A notice in Form GSTR - 3A will be sent electronically to a registered dealer who fails to file returns !!

Payments

• The electronic - tax liability register, credit ledger and cash ledger will be maintained for all registered dealers;
• The electronic tax liability will be debited with the amount of tax, interest, late fee, mismatch in credits etc..;
• Same will be credited with amount paid through electronic - cash register & credit register;
• The electronic credit ledger of tax payer will show details of invoice and amount of credit;
• The electronic cash ledger shall be credited with the amount deposited and debiting the payment there from towards tax, interest, penalty, fees etc
• The final acceptance of input credit will be made available to registered dealer in Form GST ITC - 1 electronically;

Refund 

- The refund claim in GSTR - 3 (Part B) shall be deemed to be an application filed for refund;

- 80% of refund will be granted subject to following conditions :

• Person claiming refund has not been prosecuted for any offence under GST during any 5 preceding years;
• GST Compliance rating of the applicant is not less than 5 on scale of 10;
• No proceedings for any appeal, review or revision is pending on GST issues;

- Refund will be granted after adjusting any outstanding demand payable by the applicant;

- Any amount rejected as refund will be re-credited to the electronic credit ledger;

- Registered dealer claiming refund of tax paid on inward supplies shall apply for refund in Form GST RFD - 10 once in every quarter.

* The author is a Tax Law Professional who may be contacted at shreetaxchambers@bsnl.in