06 July 2017
Main principle on which GST works.. Supply chain till it is consumed , meaning no ITC is taken
1) Small traders less than 20 Lakhs exempted from GST 2) Above threshold limit there should be registration under GST 3) up to 75 laksh Composition scheme separate rates but no ITC allowed and no inter state supplies allowed 4) Not registered under Trade mark brand goods respective tax slab allowed but if registered under Trade mark full tax charged all supplies invoice to be raised with HSN code / rate / discount and taxes GST tax structure when supplies to one state to other state IGST is charged and when supplied with in the state ( CGST+SGST) 5) To gain , ITC registration under GST is must and also all supplies including buying / selling transactions vide invoice should be confirmed in a GSTN portal respective buyer / seller should have paid the GST amount and filed the returns for the month without any query 6) Closing stock as on 30.06.2017 should be filed in TRANS 2 format and on all supplies deemed credit is allowed to the extent of 60% /or 40% as the case may be ( refer guide) 7) only GSTR 1 details of all supplies to be filed rest 2 / 3 are auto populated based on the details of buying . selling only electronic payment / refund if any first 90% immediate and bal 90 days 8) with above basic understanding and no supply chain will be lost if followed judiciously.
07 July 2017
Tku sir , I want the CA student community and working accountants to understand the basics of law , then only they can decide how the taxation attracts , kindly guide on the above points so that we can circulate to our boys who will write CA exams since earlier laws were interpreted in many ways.
07 July 2017
Correction in point No 4 is required. 4) For rice, wheat and other cereals and pulses Not registered under Trade mark no GST applicable but if registered under Trade mark 5% GST applicable.
07 July 2017
yes sir , Noted in case of Warranty spares given free of cost how is the GST attracted , since there is supply of spares as replacement and 1 ) when the worn out spares returned back - 2 ) only on disposal it is considered as scrap with 12% GST - 3 ) but reworked and returned the difference in value GST at 18% is charged
07 July 2017
In case of Warranty spares given free of cost GST is attracted and tax invoice with GST will be collected from manufacturer. 1 No GST effect. 2 Yes. 3 Yes.
07 July 2017
1 ) it is understood that when ever there is spares replaced as per Warranty conditions , no deemed supply under GST law for taxation and hence considered as already value recovered in warranty charges
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