Home » GST » Articles » Suggestions : Some mistakes in GST by traders

mistakes in GSTAfter roll out of GST from 1st July,2017, business & traders communities are very confused about GST related matters that how to generate Bill of Supply, what to do if advance payment received,  tax rate, HSN/SAC code, GST or CGST or SGST or IGST  etc. even tax consultants and advocates are also passing through in learning phase. Our team notice some mistakes in GST made by business community. Here we try to provide some suggestions which helps you a lot.

  1. Invoice with only GST or GST pool : We notice that so many traders, restaurant  and bankers are generating tax invoice  showing only ‘GST’ or ‘Goods and Service Tax @18%’ like, but friends remember there is no such ‘GST’ tax there must be either ‘CGST’ + ‘SGST’ or ‘IGST’, So, please mention  specific tax code  if you show only GST it will consider as ‘IGST’ as this is the only consolidated rate . If your sales is intrastate than you must show GST in your tax invoice i.e. CGST 9% + SGST 9%.
  2. Composition Scheme Applications : Many traders, manufactures, and restaurant owners are confused that how to get composition registration. If you are in regular GST  tax payer or already migrated in GST and you want to opt ‘Composition Scheme’, for that you have to submit one FORM GST CMP-01, along with stock details ,suppose your stock details contain any inter state purchase ,then you are not eligible for composition scheme.
  3. HSN code and Tax Rate: We notice that there is confusion between buyers and seller about tax rate and HSN code. We recommend our viewer that both buyer and seller should sit to gather and fixed your products tax rate, and minimize mismatch possibility and get hassle free Tax credit.
  4. Place of Supply : Always remember to mention the place of supply in your tax invoice if your invoice issued to inter state supply or unregistered recipient and value is more than Rs. 50000/- than you must have to mention address of the supply, state name  and date. Suppose you do not mention place of supply then it will deemed to be intrastate supply and CGST + SGST will be charged.
  5. GST on advance Payment received against sales: Some people believe that GST (CGST+SGST or IGST) liability on Advance Payment received against future supply of goods have to be discharged by cash payment only, in the same month of payment received, but it is not true , you just have to create GST Tax liability on Advance payment received and adjust same Tax liability against Tax invoice generate in same month, or in next month first you adjust GST liability on advance payment against GST receivable from customer and balance amount of GST pay in cash.

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