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Wednesday 12 July 2017

GST Masterclass Key Takeaways

Key takeaways from Governments First GST Masterclass:
The Government has proposed a series of hour long “Masterclasses” for six days. Following are the gist from Thursday’s GST masterclass:
Registration on GST portal:
The government clarified that it is mandatory for the traders and dealers to complete the Part-B of their GST registration within the period of 90 days.
Registrations can also be done through any official in a VAT or Service Tax office of state and central government, for which no charge will be levied.
Updating details after registration:
The GST masterclass also discussed the updating of business details in the GST portal. The government said that for minor details like bank account number, phone number, e-mail ID, the trader herself/ himself can make the changes by visiting the GST registration portal.
However, only by tax officials are allowed to modify any business details (change in legal name of business, address of place of business, addition or deletion of partners or directors etc.)
Exemption on turnover of Rs 20 lakh:
The Trader class are aware that they are exempt from GST registration if their annual turnover is less than Rs 20 lakh. However, the GST Council officials clarified that if a business involves inter-state supply, then GST registration is mandatory even if the turnover is below the threshold.
It was also pointed out that if a business has a turnover below Rs 20 lakh currently and happens to cross the threshold over time, then it needs to get itself registered within 30 days of it.
Items outside GST purview:
Following is the list of products and the competent authority which can charge tax on them:
·         5 petroleum commodities- VAT can be levied by state government while excise duty by the centre government
·         Stamp duty and registration charges- Only state government
·         Vehicle Tax- Only state government
·         Electricity Duty- Only state government
·         Potable alcohol- Only state government
·         Entertainment Tax- Only state government.
Miscellaneous:
The Government also clarified the following frequently asked questions:-
·         The provisional ID number received at the time of registration is the same ID number received on completing registration.
·         All registered dealers will have to furnish their GSTN registration numbers on signboards.
·         In case, a dealer is facing problems in uploading Digital Signature Certificate (DSC), he/she can also opt to authenticate using an OTP (One Time Password) sent to his/her mobile number and e-mail ID.

Key takeaways from Governments Second GST Masterclass:
To clarify and correct misconceptions about the GST concept, the Government has proposed a series of hour long “Masterclasses” for six days. Following are the important points from Friday’s second GST masterclass:
There is no prescribed proforma that businessmen need to follow while raising an invoice in the GST regime.
The following details must be included in the invoice:-
·         The GSTIN of the trader
·         The bill amount with the CGST (Central GST) and SGST (State GST) mentioned clearly.
A manual invoice may be generated instead of a digitised bill, provided it contains the necessary details.
Issuing an invoice is not necessary if the transaction is of below Rs 200.
The trader however is compelled to furnish an invoice in case
·         The consumer insists on it or
·         The transaction is B2B (Business to Business).
Stickers for modified MRP under the GST regime.
The revenue secretary said that in case of large number of such goods, the traders should at least notify the modified price in newspaper advertisements. A fine of up to Rs 1 lakh, including a jail term can be posed, if new, post-GST rates are not printed on the inventory in the interest of consumers.
Miscellaneous
·         If GSTIN is not yet available, then a businessman can use her/his Provisional ID to generate invoices.
·         A ‘Search’ box has been added in the official GST website where traders can look up for the HSN (Harmonised System Nomenclature) code and the applicable GST rate for a good or service.

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