Here are some of the common questions on the Goods and Services Tax.
Q. I have successfully submitted the form for fresh GST registration and also got my registration certificate. However, I forgot to add two SAC codes at the time of registration, which include most of the services that I provide. What is the procedure for adding those SAC codes?
A. Once you get the provisional GST registration certificate (Form GST Reg 25), the government has given 90 days’ time to update any changes (till 30th September). You can log in to the GST portal with your credentials and update/add the SAC codes, under services provided. The changes made will be reflected in the final GST registration certificate.
Q. Is the composition scheme applicable for online sellers? We have our own website.
A. The composition scheme is applicable to traders, retailers, and manufacturers. If you are selling on an e-commerce platform, the composition scheme is not applicable.
Q. Is it possible to have an invoice with 2 serial numbers – for example, an online invoice and another print invoice?
A. Yes, it is possible to have 2 serial numbers. GST rules mandate that you should have consecutive serial numbers. However, for online invoices and print invoices, it can be different and can have different serial numbers.
Q. In case my vendor is not registered, then, how can I generate the invoice? How does the reverse charge system work?
A. In case of purchase from an unregistered vendor, the reverse charge will be applicable. You will have to pay tax on it. You will eligible for input credit, once the tax is paid under the reverse charge mechanism. In this case, you need to create a self-invoice bill to yourself and add tax to it.
Q. What is the format for the reserve charge invoice?
A. The reverse charge invoice will be similar to your regular invoice, except that you will be billing yourself/your own company.
Q. Is it mandatory to generate the reverse invoice every time we purchase, or can we generate it at the end of the month?
A. You can generate one consolidated invoice at the end of the month.
Q. We are registered in Delhi and our vendor is registered in Haryana. Can we ship the products to customers directly, from our vendor’s premises?
A. You can ship the product directly to customers, from the vendor’s premises. However, you may need to consider the applicability of CGST, SGST, and IGST, depending on the place of supply. If the place of supply is outside the state, then, it becomes an IGST transaction and if it is within the state, it will become an SGST+CGST transaction.
Q. What are the returns to be filed?
A. You need to file 3 returns every month. GSTR 1 (which is the details of your sale), GSTR 2 (which is for the purchase details) and GSTR 3 (which will be a summary of sales and purchase details, along with tax payable). For the month of July and August 2017, GSTR 3B has to be filed, which will be a summary return for total sales, purchase and GST payable for the month.
Q. What is the date, for filing of the GST returns?
A. A summary return form in GSTR 3B will be required to be filed on a self-declaration basis, for the first 2 months (i.e., July and August), by the 20th day of the next month. In other words, for the month of July, a summary return needs to be filed by 20th August after paying appropriate taxes and for the month of August, the same needs to be filed by 20th September.
However, GSTR 1, with invoice-level details, needs to be filed for the month of July by 5th September and for the month of August, by 20th September. GSTR 2 and GSTR 3 for these two months will be filed thereafter. This means that the matching for the first two months, of July and August, will take place only after 5th /20th September, respectively.
Q. How one can deposit tax under GST?
A. A person can generate a challan in Form GST PMT-06 on the GST portal and enter the details of the amount to be deposited by him towards tax, interest or penalty, any other amount and pay the amount through any of the following modes:
- NEFT or RTGS.
- Net banking through authorized banks.
- Credit/debit card through the authorized bank.
- Over the counter payment through authorized banks, for deposits up to Rs 10,000 per challan per tax period, by cheque or demand draft.