For determining the eligibility for the GST Audit, do I need to consider the turnover as per the financial statements or I need to compute it separately?
It has to be considered separately as the turnover given in the Financial statements is based on the accounting standards and for GST it is based on Aggregate Turnover and Supply also includes some transactions even if consideration is not received as detailed in Schedule 1 of CGST Act.
As per Circular No 34 dated 1 st March 2018, bus body building is considered as Composite
Supply and based on the contract to contract, the principal supply is to be determined and basis
on which GST will be determined as supply of goods or services.
As per Rule 138 of the CGST Rules, every registered person under GST has to generate Part A of FORM GST EWB-01, when goods worth more than Rs 50,000 are being transported in relation to supply or for stock transfer from one location to another location or for movement of material for other than supply or in case of inward supplies from unregistered taxpayers.
As per Sub-section 68 of Section 2 of CGST Act 2017, ” means any treatment or process undertaken by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly” meaning that it would amount to supply if the job worker adds any materials during the process or treatment. This is a major change in the job work process compared to erstwhile Central Excise Act.
My third book on GST, ‘GOOD AND SIMPLE TAX – GST FOR YOU” is now available at https://notionpress.com/read/good-and-simple-tax-gst-for-you
ISBN – 9781947697737
The Goods and Service Tax rolled out in India on 1st July 2017 subsuming a plethora of taxes into a single tax and enabling input tax credit at every stage of the supply chain, thereby making the products and services cheaper to the end consumer. The rollout of GST also improves the ease of doing business in India.
The way the business is carried out in India is undergoing a major change as the terms of manufacture, purchase, sale, and service is replaced with a single word called “Supply.” The author covers all these topics like Supply, Place of Supply, Time of Supply and Valuation with easy to understand examples so that the trade and industry can benefit at large from the same and change their business practices accordingly.
“GOOD AND SIMPLE TAX – GST FOR YOU” is a written in layman’s language and it explains the complex GST requirements in a simple and lucid language with examples.
- – CS Vasudeva Rao Devaki, DV Rao and Associates
Kindle version and e-book will be released shortly
As per the Tax Invoice, Credit and Debit Note Rules, released for GST on 18th May 2017, as per Rule 5 at the time of creation of receipt voucher, if the nature of supply is not known, then the supply will be determined as inter-state supply and IGST should be levied.
Every registered tax payer has to issue an electronic waybill aka e-waybill if the consignment value is more than Rs 50,000 (fifty thousand) for the following cases, a) in relation to a supply, b) for reasons other than supply (job work, moving out machinery for repairs) and c) on purchases from unregistered persons.