What are the transactions i need to show in the Point F of Part II of FORM GSTR – 9C, “Trade Discounts accounted for in the audited Annual Financial Statement but are not permissible under GST” ?
There could be some business cases where the discount being offered is not know at the time of supply or the discount could not be established to particular invoices or input tax credit is not reversed on the trade discount offered or it is not mentioned on the tax invoice. In all the above cases, the trade discount will be part of the financial statements but not part of the GST Returns.
Do I need to do Reconciliationreconciliation between the Financial Statements and GST Returns for the turnover / outward supplies while preparing the GST Audit Reconciliation Statement?
Yes, as per Ind AS – 18, revenue will be recognized only when the risks and rewards are transferred whereas in GST, at the time of Supply (section 13,14 & 15 of the CGST Act 2017) GST Liability has to be accounted.
Example: Goods shipped on 29th March from Delhi to Chennai and they are delivered on 3rd April at Chennai. As per GST, liability has to be accounted and paid in the March months return and as per Ind AS -18, it will not be booked as revenue if the Risk & Reward is not transferred.
In case of movement of goods on sale or approval basis, the supply is known only at the time of acceptance by the customer, after customers acceptance only tax invoice can be issued. Until such point of time, the goods are to be removed or moved only on delivery challan and e-waybill if applicable.
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 draft Determination of the Value of Supply, if the open market value is not known or the total amount of consideration in money or kind is also not known at the time of supply, valuation can be determined for the value of supply of goods or services or both on supply of similar goods or services for similar quality.
As per the CGST Act, The time of supply for interest, late fee or penalty for delayed payment of any consideration is the date on which the payment is received by the supplier but not on the date on which the suppliers raises the debit note.
In Annexe – 1 of the GSTR – 9B, the data related to Revenue has to be furnished. In Section D ( Adjustments (Differences on account of time of supply)) the taxpayer has to show the Opening Unbilled Revenue and the Closing Unbilled Revenue.
As per the time of supply under GST, receipt voucher / tax invoice has to be issued at the time of receipt of advance from the customer (for supply of goods or services) and it has to be uploaded on the GST Portal which will issue a unique reference number for each of the documents and the same has to be reported in table of GSTR – 1.
Time of supply for the goods under the revised Model GST Law, is data of issue of invoice or last date to be issued under the provisions or date of receipt of payment whichever is earlier.