GST Rules and Regulations

Compilation of GST Rules and Regulations

After a stint of enriching debates, the road to GST roll-out is quite clear as the Indian Parliament has passed the bill with all the necessary amendments. It is speculated that GST would be implemented w.e.f. July 1st, 2017, and this destination-based taxation system would pave way for more prospective common national market apart from ensuring benefits galore for taxpayers, businesses, and consumers in the country.

However, to ensure smooth implementation and enforcement, the pursuit of creating mass awareness regarding GST rules and regulations in India becomes paramount. Herein, it is important to educate all the indirect tax officers of States and Centre who can ensure smooth enforcement and implementation of GST rules and regulations. Similarly, it is equally imperative to create enriching awareness of GST regulations among the taxpayers.

Discussed below are key GST rules that you need to know.

GST Registration Rules

Any supplier who performs any commercial activity or carries on any business at any place within the national boundary of India and whose aggregate annual turnover exceeds threshold limit is liable to get GST registration. However, as per the GST registration rules, certain categories of persons are liable to be registered irrespective of this threshold.

You need to get GST registration if you are already registered under:

  • Central Excise
  • Service Tax
  • State Sales Tax or VAT (except exclusive liquor dealers if registered under VAT)
  • Entry Tax
  • Luxury Tax
  • Entertainment Tax (except levied by the local bodies)
To Ensure Immaculate GST Registration, Please Visit (GST Registration)

Registration under GST regime will confer a myriad of advantages to business, and GST-registered businesses would become legally authorized to collect tax from his/her purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.

  • If a particular person or business entity does not have GST registration, then that person or business firm cannot collect GST from customers. Additionally, those types of businesses or persons would not be allowed to claim any input tax credit of GST paid by them.
  • Any person should take GST registration within 30 days from the date on which he/she becomes liable to GST registration.
  • If a person is conducting commercial activities in different states with the same PAN number, then he/she cannot operate with a single GST registration.
  • Every person or business firm that is liable to take GST registration (as per the guidelines) will have to register for GST separately for each of the states in India where he/she has a business operation and/or where he/she conducts commercial activities as per GST registration rules.

GST Invoice Rules

Businesses across India have unique enquiry regarding the format of GST invoice, and therefore, it is quite important to address this query in the most comprehensive manner. It is so true that GST invoice plays crucial role towards immaculate enforcement, and businesses must be taught about what an ideal GST invoice must encompass. Given below are some crucial details that can help enterprises in India develop comprehensive understanding of GST tax rules.

A GST invoice shall be issued by the GST-registered person, and it should contain the following details:

  • Name, address and GSTIN of the supplier
  • Date of its issue
  • Name, address and GSTIN or UIN, if registered, of the recipient
  • Address of delivery, along with the name of State and its code
  • HSN code of goods or Accounting Code of services
  • Description of goods or services
  • Quantity in case of goods and unit or Unique Quantity Code thereof
  • Total value of supply of goods or services or both
  • Taxable value of supply of goods or services or both
  • Rate of tax (Central tax, State tax, integrated tax, Union territory tax or cess)
  • Amount of tax charged (central tax, State tax, integrated tax, Union territory tax or cess)
  • Place of supply along with the name of State
  • Whether the tax is payable on reverse charge basis
  • Signature or digital signature of the supplier or his authorized representative

Manner of Issuing Invoice

In case of supply of goods, the invoice shall be prepared in triplicate in the following manner:

  • The original copy marked as “ORIGINAL FOR RECIPIENT”
  • The duplicate copy marked as “DUPLICATE FOR TRANSPORTER”
  • The triplicate copy marked as “TRIPLICATE FOR SUPPLIER”

In case of supply of services, the invoice shall be prepared in duplicate in the following manner:

  • The original copy marked as “ORIGINAL FOR RECIPIENT”
  • The duplicate copy marked as “DUPLICATE FOR SUPPLIER”

The serial number of invoices issued during a tax period shall be furnished electronically through the Common Portal in FORM GSTR-1.

GST Payment Rules

For any intra-state supply in the GST regime, taxes to be paid are the Central GST (which would go into the account of the Central Government) and the State GST (which would go into the concerned State Government’s account). For any inter-state supply in the GST regime, tax to be paid is Integrated GST (which would have components of both CGST and SGST). Additionally, one would also need to pay interest, penalty, and fees wherever applicable as per the GST rules India.

The table below shows various types of payment forms for GST-registered taxpayers.

S. No. Form No. Title of The Form
1. Form GST PMT-1 Electronic Tax Liability Register of Taxpayer
(Part–I: Return related liabilities)

Electronic Tax Liability Register of Taxpayer
(Part–II: Other than return related liabilities)
2. Form GST PMT-2 Electronic Credit Ledger
3. Form GST PMT-2A Order for re-credit of the amount to cash or credit ledger
4. Form GST PMT-3 Electronic Cash Ledger
5. Form GST PMT-4 Challan For Deposit of Goods and Services Tax
6. Form GST PMT-5 Payment Register of Temporary IDs/Un-registered Taxpayers
7. Form GST PMT-6 Application For Credit of Missing Payment (CIN not generated)
  • The electronic tax liability register shall be maintained and managed for each person or business entity liable to pay interest, tax, penalty, late fee or any other amount on the Common Portal, and all the amounts payable by him/her shall be debited to the electronic tax liability register.
  • The electronic credit ledger shall be maintained and managed for each registered person or business entity eligible for input tax credit on the Common Portal, and every claim of input tax credit shall be credited to the electronic credit ledger.
  • The electronic cash ledger shall be maintained and managed for each registered taxable person or business entity on the Common Portal for crediting the amount deposited and debiting the payment therefrom towards tax, interest, penalty, fee, and/or any other amount.

GST Return Rules

  • Every GST-registered person or business entity needs to file Return in GST regime either on a monthly (normal supplier) or on a quarterly basis (those suppliers which are opting for composition scheme).
  • An ISD (Input Service Distributor) will have to file monthly returns in GST regime which must show the details of credit distributed during a particular month.
  • A person/company required to deduct tax (TDS) and persons/companies required to collect tax (TCS) will also have to file monthly returns in GST regime which must show the amount deducted/collected tax.
  • A non-resident taxable person will also have to file returns in GST regime for the period of commercial activity undertaken.

As per GST rules and regulations in India, GST-registered taxpayers have to file the details of outward supply in Form GSTR-1, which must include:

Invoice wise details of all

  • Inter-State and intra-State supplies made to registered persons.
  • Inter-State supplies with invoice value more than two and a half lakh rupees made to unregistered persons.

Consolidated details of all

  • Intra-State supplies to unregistered persons for each rate of tax.
  • State wise inter-State supplies with invoice value less than two and a half lakh rupees made to unregistered persons for each rate of tax.

Debit and credit notes, if any issued during the month for invoices issued previously.

  • GST-registered taxpayers have to file the details of inward supply in Form GSTR-2, which must include:

Invoice wise details of all inter-State and intra-State supplies received from registered persons or unregistered persons.

Import of goods and services made.

Debit and credit notes, if any, received from supplier.

GST Refund Rules

  • Application: All the businesses, persons, and taxpayers who claim refund of any tax, penalty, fees, interest, or any other amount may file an application in Form GST RFD-01 electronically through the Common portal.

The applicant can fill application either directly or through a Facilitation Centre.

  • Acknowledgement: An acknowledgement regarding the claim of refund will be made available to the petitioner or applicant through the Common Portal electronically in a specific form, which would clearly indicate the date of filing of the refund claims.

In case it has any discrepancy, the concerned tax officer would apprise the applicant about the same.

  • Grant of Provisional Refund: The provisional refund shall be granted once the following conditions specified in the Act are fulfilled. Herein, the concerned authority pays special attention towards the factors such as prosecution; pending proceedings; and GST compliance ratings.

After comprehensive scrutiny of the claim and the evidence, the concerned officer shall make an order in FORM GST RFD- 04. This form would be sanctioning the refund amount on a provisional basis.

Then, the officer shall issue a payment advice in FORM GST RFD-05 for the sanctioned amount, which shall be electronically credited, within the specified timeframe, to any of the bank accounts of the applicant.

  • Order Sanctioning Refund: Once the proper officer is satisfied upon the examination of the refund application, he shall make an order sanctioning the amount of GST refund to which the applicant is entitled.

The officer shall mention the amount, if any, refunded to applicant on a provisional basis.

  • Order Sanctioning Interest on Delayed Refunds: If any interest is due and payable to an applicant, the concerned officer shall make an order along with a payment advice in FORM GST RFD-05. This would be specifying the amount of refund being delayed along with the period of delay (for which interest is payable) as well as the amount of interest payable. That amount of interest shall be credited electronically to any of the bank accounts of the applicant.

Contact us immediately to ensure utmost compliance with GST rules and regulations.

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