Rajakumari's blog

In business, it is common to face scenarios where the value of tax turns out to be in decimals. How to treat such values? Should the amount of tax be retained with decimals? Or should it be rounded upward to the nearest rupee? Or should it be rounded downward to the nearest rupee? Let us first understand the methods of rounding used by businesses and later, the GST rounding rules to be used for tax values.
 

Methods of rounding for tax values
A business will usually use any of the following methods to round off tax values.

Many suppliers have defined credit terms, which require their customers to make payment for supplies by a certain date. If the payment is not made, the supplier charges interest on the amount due from the customer. One of the major questions both suppliers and customers have – is GST charged on interest payment?
 
Let us understand the common queries which tax payers have with regard to treatment of interest charged by suppliers under GST.

A continuous supply is a supply where goods or services are supplied on a recurring basis under a contract and payment for the supply is also made periodically.
For example: A contract for supply of mineral water to a company for 6 months, supply of housekeeping services to a company for a financial year, supply of broadband services, etc. Let us understand the meaning of continuous supply under GST and the time of issue of invoice in continuous supply of goods or services.
 

We have learnt about the scenarios in which a supplier should issue a Debit note in our previous blog. Debit Notes and Credit notes are instruments used to record the cancellation or modification of a supply for which Tax Invoice or Bill of Supply has already been issued. In this blog, let us understand the scenarios in which a supplier should issue a credit note under GST.
 

When to issue Credit Note under GST
A person supplying goods or services should issue a credit note in the following scenarios:

In light of the recent shock of demonetisation, the Indian government’s push to move India into a more digital, a more compliant, and subsequently a more vibrant economy was clear from the budget. With MSMEs being hit the hardest with demonetisation – the budget announced on Feb 1st laid out some good incentives to encourage growth across the MSME sector with an explicit remark that the largest employment opportunities in India lie within this sector.

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The Government is making all efforts to stick to the timeline of 1st July for GST implementation. In the 15th GST Council meeting on 3rd June, 2017, the rates of 6 items were decided, including gold, footwear and textiles. All the states, except West Bengal, have also agreed to roll out GST from 1st July, 2017. Following is the status update on the GST Act and rules:

The 21st GST Council meeting held at Hyderabad on 9th September 2017, discussed some of the crucial issues such as difficulties faced by the businesses in filing the return, increase on Cess on cars, proposals received from various trade associations to lower the rate of GST on certain products and so on. To facilitate the businesses in meeting the compliance standards, the following are key changes recommended by the GST Council Meeting.
 

The 22nd GST Council in its meeting held at New Delhi on 6th October 2017, discussed about key changes required to ease the burden of compliance on small and medium businesses. The difficulties in filing the return, inconveniences faced on account of paying tax on RCM and advance receipts and proposals received from various trade associations to lower the rate of GST on certain products/services, were few important issues which were discussed and accordingly the recommendations are made by GST council meeting.
The following are the GST Council’s decisions:

In the GST Council meeting on 10th November, ’17, various decisions were taken with the view to make compliance easier for small tax payers, make composition scheme more attractive for tax payers and reduce the household expenditure for consumers. Let us understand the GST Council’s recommendations in detail:
 

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